Saudi Arabia is looking to make it easier for foreigners to invest in their real estate sector as the Kingdom takes a step towards diversifying its economy. According to Abdullah Alhammad, chief of The Real Estate General Authority, this new law which will give international investors access and rights on all kinds of properties, is close to finalization with an expected announcement soon!
During the year 2021, Saudi Arabia made a groundbreaking move that marks a significant milestone in real estate. From that bold move, now Citizens, legal residents, and ex-pats living in the country can purchase single properties. However, with certain restrictions apply.
Under the new law, foreign investors will enjoy a more expansive range of property ownership opportunities than ever. From commercial to residential and agricultural sites, REGA’s CEO noted that this legislation provides unprecedented access for everyone by applicable regulations.
According to ArabNews, the new law opens up a world of opportunity for foreign investors by overturning past restrictions and allowing them to purchase real estate in important holy cities across Saudi Arabia.
While obtaining foreign ownership of this piece of property, he ensured all potential pitfalls were addressed beforehand, and appropriate measures were developed to guarantee any adverse effects would be minimized.
Saudi Arabia is driving its transformation of the real estate sector into high levels with new laws aimed at bringing in foreign investment and boosting the country’s GDP. This bold move shows an ambitious focus on modernizing this crucial economic facet for a bright future ahead.
By opening up new investment opportunities, the Kingdom’s inventive step offers ex-pats and global investors a unique chance to explore promising markets beyond traditional ones, such as the UAE.
Saudi Arabia’s rapid urbanization has resulted in a supply-demand imbalance, making property prices soar and pricing out many from the real estate market. Industry reports suggest that this issue is most acute in major cities such as Riyadh and Jeddah.
Saudi Arabia’s Real Estate General Authority has identified a worrisome trend of increasing real estate prices due to unmet demand in the current market. This imbalance adversely affects the entire sector, prompting urgent action from the REGF chief to remedy this situation and restore reasonable pricing for all consumers.
Alhammad commented on the current state of real estate: with skyrocketing prices often outstripping buying power, it’s a challenge for potential home buyers to find something within their budget. Investors, too, have been adversely affected by this climb in property values.
Alhammad highlighted the challenging real estate market where land prices could be prohibitive, resulting in landowners needing help selling their property and often requiring to reduce price points. Supply-and-demand dynamics are at play here, creating an ever-changing landscape within this industry.
The authority has taken action to ensure that white land is utilized for its total value, with the imposition of taxes in 2017. This strategic move helps support investment within urban boundaries and encourages responsible use of vacant space allocated for residential or commercial purposes across the Kingdom.
In 2016, the government of Saudi Arabia identified 30% of urban land as being underdeveloped. To incentivize landowners to develop their plots and drive economic growth in these areas, a 2.5% tax based on land value was imposed upon those who had purchased undeveloped property.
The government is striving for innovation in land development, proposing the White Land Tax to increase available plots and enhance efficiency fees by 10%. This proactive approach aims to revolutionize urban areas.
Applying for a visa to Saudi Arabia has become easier long before the new law allows foreigners to purchase property there. This change has created a positive atmosphere and environment, enabling those living abroad to experience first-hand the many attractions that Vision 2030 seeks to promote.
Not only can one easily purchase properties, but obtaining a visa for travel to Saudi Arabia has become more straightforward. Tour companies have been established that provide crucial guidance on the process, from acquiring permits and access to specialized transport services and souvenirs.
The easing of restrictions by issuing various types of visas and tourism, business, and transit facilities are encouraging more foreign nationals to explore the kingdom. With eVisa service, now available for Umrah, business, events, and activities, as well as enjoying time with family members living in Saudi Arabia, makes it convenient for individuals seeking housing opportunities here.