International real estate companies are increasingly entering the Saudi real estate market, which is at a promising stage of development. For instance, SEDCO Holding recently announced a partnership deal to develop a land plot in Al Qadisiyah, north of Riyadh. The plot is located near King Khalid International Airport and has direct access to major roads and other transportation networks. It will be developed in multiple phases and subdivided into plots for sale. It will also include crucial infrastructure.
The Saudi real estate market is expected to grow at a CAGR of over 9.74% over the next five years. Low oil prices in recent years have impacted the Saudi economy by reducing oil exports and government fiscal receipts. Despite these challenges, however, the market is still expected to experience robust growth in the coming years.
Foreigners are permitted to acquire عقارات الكويت real estate in Saudi Arabia, subject to obtaining a foreign investment license from the General Investment Authority of Saudi Arabia. Foreign owned entities may not own property in Mecca. This is due to the anti-fronting law, which prohibits foreign-owned companies from owning property in the holy city.
The residential real estate market in the kingdom continues to grow. In fact, it is projected to surpass US$ 70 billion by 2030. The government is aiming to increase the percentage of Saudi families who own their homes to 70 percent. As a result, Saudi real estate market will continue to see continued growth, as the government has commissioned more than US$ 5 billion worth of new housing projects in the past six years.
The Saudi Prince’s new palace was recently completed. It is located on 35,000 square meters (about 8.6 acres), making it five times the size of the old palace complex. The new complex is slated to be the home of Prince Mohammed VI’s son. The prince also owns a helicopter, three jets, and a super-yacht. Other owners of the palace include Donald Trump, Adnan Khashoggi, and the Sultan of Brunei.
A company based in Dubai, Emaar EC, is one of the leading Saudi developers. This firm is developing Bay La Sun, the country’s first residential community, due to be completed by the end of 2008. The company has already generated SR1bn in residential sales and is on track to deliver the first phase of the project by the end of 2008. Emaar EC’s CEO says that Bay La Sun is a fully integrated community, with advanced central cooling systems.