Saudi Real Estate Braces for Freehold Boom as Foreign Ownership Reforms Loom

Saudi Real Estate Braces for Freehold Boom as Foreign Ownership Reforms Loom

Foreigners eye lucrative opportunities in Saudi real estate as the Kingdom plans to lift property ownership restrictions, experts told sources, highlighting that the move will spark investor optimism but also exacerbate the house affordability issue.

“Relaxing foreign ownership laws will expand the potential pool of international investors in the Saudi real estate market,” said Mansoor Ahmed, Executive Director at Colliers MENA. “This surge in demand from foreign buyers could lead to a rise in property sales, especially in sought-after locations like major cities and tourist destinations.”

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. 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 looking to settle in the Kingdom.

The Gulf country’s booming economy has piqued the interest of many foreigners looking for a lucrative investment opportunity or simply buying a home instead of renting one.

“The influx of foreign companies and executives has created a pressing need to attract more foreign investment,” Jean Abboud, Partner (KSA) at BSA Legal, told sources.

In March, reports