Real estate consulting firm: Housing spending in the Kingdom expected to increase to $1.2 billion by 2025

A recent Knight Frank survey of 1,037 households, including 100 expatriates residing in the Kingdom, revealed that Saudi citizens and residents plan to spend $489 million on residential real estate in Saudi Arabia. They also plan to allocate $733 million to megaprojects.

The company’s report stated that the NEOM project will remain the top choice for investors, but the limited supply of ready-to-use homes for sale in the market and the importance of other options have diminished NEOM’s market dominance.

NEOM will be able to accommodate approximately 9 million people and is a key part of Saudi Arabia’s economic diversification plan, known as Vision 2030, which aims to boost sources of economic growth outside the oil sector.

Expectations indicate an increase in spending on the Saudi housing market, with spending expected to reach $1.22 billion by 2025. Knight Frank research revealed that there is 2.75 billion riyals of potential private capital among Saudi citizens (2.6 billion riyals) and residents (133.7 million riyals), ready to be spent on residential properties within mega projects in the Kingdom.