NEOM has been named as the most preferred giga project to buy a home among Saudi buyers and GCC-based high-net-worth individuals (HNWI), according to global property consultant Knight Frank’s flagship 2023 Saudi Report.
Knight Frank has found that NEOM is the most preferred giga project among Saudi homebuyers, while GCC-based buyers are also eyeing the new Saudi supercity.
Faisal Durrani, Partner – Head of Middle East Research explained: “For the second consecutive year running, NEOM is being viewed by Saudis as the Kingdom’s ‘crown jewel’.”
For 2023, Jeddah Central (19%) and King Salman Park (10%) are now the new favorite home purchase targets, behind NEOM
The rest of the giga projects ‘popularity’ league table has seen a significant shake-up. Last year, The Red Sea Project and Diriyah Gate were positioned in second and third place, respectively. For 2023, Jeddah Central (19%) and King Salman Park (10%) are now the new favorite home purchase targets, behind NEOM, says Knight Frank.
Durrani continued: “The Red Sea Project has slipped to fifth place and this is most likely due to the fact that it is among one of the most advanced giga projects, in terms of its development – it is increasingly clear that it is a luxury holiday destination, with an emerging high-end second homes market. Similarly, Diriyah Gate, which fell to sixth place overall, is also being positioned as a high-end residential destination.
“Households are being forced into a holding pattern while they save increasingly larger deposits”
“With average home prices rising exponentially over the last two years – 54% for apartments and 32% for villas in Riyadh – households are being forced into a holding pattern while they save increasingly larger deposits and at the same time contend with rising interest rates. It is perhaps unsurprising to see demand pivoting to those projects that are perceived to be more affordable as well as those which have been recently announced or have shared development updates in recent months.
“Positively for giga project developers, however, the proportion of those keen on acquiring a home in any of the new Saudi cities of the future remains virtually unchanged on last year at 86%, with up to two-thirds willing to spend up to SAR 1.5 million. And Al-Ula has the distinction of attracting the biggest spenders, with the historical city attracting the largest proportion of would-be purchasers willing to spend upwards of SAR 5.5 million”.
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