Expats Head to Saudi After HQ Rule Change but Face Major Real Estate Shortage

Expats Head to Saudi After HQ Rule Change but Face Major Real Estate Shortage

Saudi Arabia’s 2021 mandate requiring foreign firms to establish local headquarters by the end of 2023 or risk losing out on lucrative government contracts has prompted an influx of expats to the kingdom. But the growing pains of this migration have become evident, as the shortage of suitable accommodations has emerged as a major concern among new and incoming residents.

Recognising this demand, several residential real estate projects are already in the works. However, these projects are still under development and will need more time before they are ready for expats to move into.

The Saudi government has committed more than $1 trillion to date into infrastructure projects to cope with this demand, but expats who recently moved to Saudi Arabia have realised finding a suitable apartment has presented itself as a formidable challenge.

Meanwhile, others have opted to embark on their housing hunt once they have moved and have settled in a hotel paid for by their employer for the first month – a common practice among expat workers and consultants in Saudi Arabia.

Property prices have risen significantly in major Saudi cities like Riyadh and Jeddah, making it difficult for people whose incomes have not been adjusted over the years to afford.