According to Saudi Gazette, the country is rewriting its real estate regulations to make it possible for foreigners to buy property anywhere in the Kingdom.
According to Abdullah Alhammad, Head of the Real Estate General Authority (REGA), foreigners will soon be able to legally purchase estate in Saudi Arabia.
Following the law’s passage, non-Muslims would be entitled to own property anywhere in the Kingdom, including in Makkah and Madinah. Both commercial and private properties are included in the scope of the statute.
Speaking on behalf of the law, Abdullah confirmed that non-citizens will be afforded this privilege. He added that potential future concerns caused by foreign ownership have been considered and measures have been taken to mitigate their effects.
Property prices hiked in Saudi Arabia recently will impact foreign investment
These comments were made by him during an appearance on a Saudi television show. Abdullah has indicated that the recent 45% spike in villa prices over the past two years is not healthy for the expanding property industry in the Kingdom.
A poll conducted by Knight Frank and YouGov found that soaring home prices in Saudi Arabia had significantly dampened interest among locals looking to buy a home this year. In contrast to last year, when demand for homes was at 84%, it is presently at 40%.
Faisal Durrani, Knight Frank’s Head of Middle East Research, said that rising property prices were to blame for the slump in demand. He also noted that the rising cost of villas in Riyadh—up 45% in two years to SAR 5,000 per square meter—has made it difficult for many families to save enough money to buy a primary residence or vacation home.
Faisal said that this has resulted in a 34% drop in the number of residences sold in the city as a whole over the previous year. The number of homes sold has dropped by 16 percent in Jeddah as well.
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