NEOM: Expats' Top Choice Among Saudi Arabia's Giga Projects

Knight Frank's Destination Saudi report reveals that 29% of Saudi-based expats express a keen interest in owning a home in NEOM, surpassing other notable projects like Jeddah Central (15%) and King Salman Park (8%). This underscores NEOM's undeniable appeal and attractiveness to expatriate investors.

The Appeal of NEOM

NEOM's allure lies in its innovative and ultra-futuristic offerings. Among expatriates interested in NEOM, 42% are drawn to The Line, a revolutionary development that aims to redefine urban living with its linear infrastructure. Additionally, 19% express interest in Sindalah Island, known for its pristine natural landscapes, while 10% are intrigued by Sharma Valley's promise of a serene and sustainable lifestyle. These unique features have captivated expatriate buyers, making NEOM the most sought-after Giga project in Saudi Arabia.

Budgetary Considerations and Spending Power

Despite the appeal of NEOM, 87% of expats are prepared to spend under SAR 3.5 million for their property purchases, posing challenges for developers as prices in Giga projects are expected to exceed US$ 1 million. However, even after being informed about the anticipated pricing, 41% of expats remain interested in purchasing. The average expat budget for a Giga project home stands at SAR 2.7 million, notably higher than elsewhere in the Kingdom. Collectively, Saudi expats boast a spending power of SAR 570 million, indicating considerable investment potential in the Kingdom's capital.

Paying for Prestige: Premiums and Preferences

When it comes to premiums for Giga project living, nearly a third of expats are willing to pay a premium of 2.5-5% above market rates, with an average premium of 5.7%. High earners are ready to pay premiums of 5-7.5%, indicating their eagerness to invest in distinctive community features and amenities offered by Giga projects. This willingness to pay premiums underscores expats' desire for prestige and exclusivity in their residential choices.

NEOM's futuristic vision and unique offerings have firmly established it as the top choice among expatriates seeking to invest in Saudi Arabia's Giga projects. Despite financial considerations, expats exhibit significant spending power and a willingness to pay premiums for distinctive living experiences, presenting lucrative opportunities for developers and stakeholders in the Kingdom's real estate market.

To know more, download our latest research report, Destination Saudi, 2024.