Oct 12, 2024
Since the announcement of Saudi Vision 2030 initiative by Crown Prince Mohammed bin Salman, under the patronage of King Salman bin Abdulaziz, Riyadh has opened its gates wide to the world. The entertainment plans that came to life with this vision shed light upon several off-plan projects in Riyadh, generating soaring demand for these off plan real estate projects. Accordingly, there are numerous reasons these properties have emerged as an attractive investment avenue for investors and end-users alike.
This blog will discuss the underlining causality behind the upward scale in the demand for ongoing projects in Riyadh and the market prosperity it reflects.
This qualitative leap in the off plan real estate market has sown the seeds of the increased demand for off-plan projects in Riyadh, which have proliferated recently throughout the capital. This expansion amplified to bring about notable shift from the traditional horizontal urban growth to vertical development in Riyadh. Thus, it echoes the escalating needs for more properties in the now and the future, both locally and globally, due to Saudi Vision 2030 and its agenda focusing on bringing more international investments into the country.
What is driving this market boom?
In the last couple of years, some developers had foreseen the demand that would emerge once Saudi Vision 2030 was implemented; thus, they started speeding up the construction cycle of more off-plan projects in Riyadh. However, the time factor involved in completing these projects set limitations in letting them into the market quickly. This lent the green light to the concept of selling the projects once they were conceptualized and the approval for the implementation to go is guaranteed.
A developer can now launch several projects per year, only by preparing the illustrative materials necessary for marketing ends to envisualize for the clients what to expect the moment the project has been completed.
What Makes Off-Plan Real Estate in Riyadh Stand Out?
Most of the new projects developed in Saudi Arabia have offered off-plan real estate and have been able to grab major attention among investors and end-users. This was because of the myriad advantages found in the off-plan projects in Riyadh. First, comparisons with ready-built properties reveal a huge difference in price, whereby off-plan apartments are relatively cheaper. Also, while the purchase price of a ready property is paid in full by the buyer, an off-plan apartment in Riyadh can offer a flexible payment scheme spanning several months or even years, providing more ownership opportunities, even to low and mid incomes. Even more, while the property is still under construction, the appreciation in value results in high yields after the projects are completed and transformed into ready properties. This makes the portfolio quite appealing to an investor.
Is it risky to blind-invest this good deal of money?
Of course, a buyer may wonder if the units he bought would be the same as shown in the illustrative brochures of the project or if it will be a scam.
The best answer to this would be that it is, by and large, a naïve doubt of the past when off-plan investments were relatively new. Today, well-known developers have market reputation by which buyers are able to assess the credibility of their offers. Laws have also changed to protect the buyers' rights to actually receive what they were promised and to stop developers from shirking their responsibilities.
Riyadh has been working out its evolution for some years now, but all this effort was crowned by Saudi Arabia's plans to turn the capital into a global centre, attracting the world to its doors, instead of knocking on theirs. With its lucrative oil-based economy, Saudi Arabia was perceived to have few varieties of investment avenues. However, with the implementation of Saudi Vision 2030, the Kingdom flexed its various economic muscles, and foreign investments raced for a share of the profits. Accordingly, incoming investors will by default require office space and housing, urging the need as such to accelerate the work on ongoing construction projects in Riyadh. This is translated into increased demand for either rentals or direct investment into the properties themselves. Therefore, ongoing projects in Riyadh are especially enticing because of their increasing profits and ease of resale.
With the impressive urban development currently at work in Riyadh, off-plan apartments have become one of the fast-evolving investment axes due to its high expected returns. But the question is, what are the best areas to invest in?
This is a modern model city in Riyadh's Al Nakheel neighbourhood, located right at the heart of Prince Turki bin Abdulaziz Al Awwal Road. There are many off-plan real estate projects within this city, which feature world-class facilities, hence making it very attractive to investment, mainly in residential and hotel apartments due to the influx of visiting investors.
Al-Olaya District is the most prestigious district in the north of Riyadh, famous for its iconic landmarks, such as Al-Faisaliah Tower and Kingdom Tower, which attract luxurious investments. It boasts a number of the most sought-after ongoing construction projects in Riyadh. Besides being a luxury off plan real estate district, the location puts you just a few minutes from shopping and service centres.
Al-Narjis is one of the most upscale places in northern Riyadh, with nearby service centres, hospitals, and even universities. Now it has witnessed a slight increase in urbanization due to some of the high-end ongoing projects in Riyadh of apartments, villas, and detached houses. Consequently, the desirability for living in Al-Narjis has soared high, especially for those interested in finding family-friendly apartments for sale in Riyadh.
Similar to other northern Riyadh areas, Al-Malqa is one of the most famous regions that experience modern urban growth due to high demand. An investor can name their demand, and they will find it here, as new ongoing construction projects in Riyadh are introduced every day. Hence, it can be considered one of the appropriate destinations to invest in off-plan projects in Riyadh.
In addition to its strategic location in northern Riyadh, Al-Yasmeen is standing out for its modern building designs, that still retain the Saudi authenticity, to offer a blend curated to both local and foreign investors’ preferences. This district has many ongoing projects in Riyadh, hence being highly in demand for investment.
Location-wise, Al-Sahafa District is close to government and media institutions, aspiring the name of this neighbourhood. Recently, it has witnessed unprecedented activities in ongoing construction projects in Riyadh, as it provides an array of high-quality off-plan real estate. This has raised its profile in the Saudi Arabian property market, turning it into an ideal location for ongoing projects in Riyadh.
Listing fancy neighbourhoods in northern Riyadh, we cannot miss mentioning Hittin District, as it showcases top-notch off plan real estate, with neat designs and worldclass amenities. Its proximity to main roads makes it a favourite choice among many aspiring investors for off-plan projects in Riyadh.
According to the investment charts, Saudi Arabia's real estate market will continue to thrive, with the current achievements opening a way into the next phase. Indeed, this development has been marked by the increasing investments, following the great economic and social opening of the Kingdom inspired by Saudi Vision 2030.
The unprecedented urban development of Saudi Arabia paved ways for investment opportunities in ongoing construction projects in Riyadh. This leap generated increased demand for off-plan projects in Riyadh, inspiring as such developers to put their investing heart into launching more off plan real estate. The fast line of production inflected high competitiveness on the market, which kindled the creativity to develop worldclass projects in response to the international opening in the Kingdom.
To know more about all developments in Riyadh, you are welcome to read our experts' blog on Mada Properties official website and catch up with the new events taking place in the Saudi capital.
1. Are there any ongoing construction projects in Riyadh to invest in?
Yes, there are lots of Riyadh off-plan projects offering a variety of apartments with the best quality designs and amenities.
2. Can foreigners invest in ongoing projects in Riyadh?
Yes, they can. According to the amendments in the ownership laws since the launch of Saudi Vision 2030, foreigners are now able to own property in the Kingdom.
3. What is the best neighbourhood for investment in Riyadh?
The best neighbourhoods to own an off plan real estate in Riyadh are: Digital City, Al-Olaya, Al Narjis, Al Malqa, Al Yasmeen, Al Sahafa, and Hittin Districts.
4. Is there a flexible payment plan while investing in off-plan projects in Riyadh?
Of course, all developers have easy and straightforward payment plans in place to facilitate ownership opportunities for every resident and investor here in the Kingdom.
Written by: Sarah Chaher
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