Saudi Arabia is known as the world’s biggest exporter of oil. Now, the country is witnessing a property market boom, thanks to the spike in energy prices that flows through the economy. In Almajdiah Residence’s new Riyadh complex, over 300 apartments were sold in a month for cash. That too without putting any advertisement!
At a time when the world is fretting over inflation caused by the Russia-Ukraine war and potential recessions, Saudi Arabia’s economy is the fastest growing. In the second quarter, the gross domestic product expanded 11.8 per cent and the non-oil economy grew 5.4 per cent. Billions of dollars are flowing into Saudi’s economy raising the state investments. Inflation last month was 2.7%, which was about a third of the rate in the US or eurozone. The economy is expected to expand 7.6% this year but growth could fall back to 2.5% by 2024, according to a Bloomberg survey of economists. The figures may vary in the future depending on the global changes, but there are positive factors in the property sector.
The social and economic shift caused by the crown prince’s overhaul programme is reshaping the kingdom. The ruler Mohammed bin Salman has ended or relaxed restrictions on entertainment and how men and women can mix. He is also trying to curb the reliance on oil. All these efforts have brought certain changes. For instance, ten years ago, many property owners would not even rent to women who needed the approval of a male guardian to take life decisions. This scenario has changed. Now, a major chunk of property buyers is female.
In fact, there is a shift in the design, too. Many Saudis previously preferred houses with high walls and tiny windows to preserve privacy. But the social opening, along with smaller families and tighter budgets, is changing that. The developer’s newest complex has shared courtyards, cafes, gyms and a nursery.
The style is inspired by the high-end housing in Dubai, the regional hub Prince Mohammed wants to compete with. The country has plans to attract millions of expatriates, too. That is where the property market is going to flourish more. More the people, the higher the demand for apartments will be.
