real estate Riyadh
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Updated 5 months ago

Even though Saudi Arabia has experienced significant changes in the past years, the local real estate market remains quite promising. Today, many expats are looking to buy property in Riyadh, the capital city, but before you start this new adventure, it's best to inquire about the local features.

The development of the real estate market

Riyadh's real estate market became the most attractive when oil prices began to drop in Saudi Arabia like in the rest of the region. Since it is home to the world's second-biggest oil reserved, the Kingdom of Saudi Arabia (KSA) has been relying on the oil industry for many decades. Even though it would not be correct to state the contrary, the real estate market in Saudi Arabia seems to be taking the lead. The country is no longer dependent solely on oil and the petrochemical industry.

Thanks to the development of tourism and entertainment, more and more real estate investors are now attracted to Saudi Arabia, and it's major cities like Riyadh. In fact, large compounds are being been everywhere to cater to the growing needs of expats like the wealthy Saudi nationals. From modern apartments to luxury villas, there is something for all tastes, even though prices are likely to be high.

It's also worth noting that the oil downfall had a significant impact on the local real estate market in recent years. While it remains challenging for locals to own property, apartments and villas have become rather affordable for expats looking to live and invest in the city.

Procedures

Expats looking to buy property in Riyadh have to request for authorisation from the Ministry of Housing. Note, however, that procedures can be long and tedious - these can take up to a year. Once you get this authorisation letter, you can contact the seller to carry on with the process. Most of the time, properties are bought in cash, so make sure to have the required amount readily available. You may also have to pay a deposit once you have selected the property and notified the seller of your intention to buy.

Important:

Never sign a sales contract prior to confirming your eligibility to buy property in Riyadh. Seek legal advice before proceeding.

In general, property prices are negociated between the buyer and the seller, but you can also seek the assistance of a legal representative or a broker. However, you're advised to make sure whether the seller is really the owner of the property you're intending to buy. This can be checked at the Sharia Court. Also, the title transfer, as well as all other documents have to be verified and stamped by the court.

Benefits of buying property in Riyadh

Unlike other countries, there is no interest on the sale of property in Saudi Arabia, so you're not likely to be charged unreasonable fees. However, to obtain finance from the bank for the purchase of property, you have to be compliant with Islamic law.

On the other hand, to counter the imbalance between middle and low-income in Riyadh and Saudi Arabia as a whole, there are many ongoing urban developments and city expansions. Also, the Ministry of Housing is working on a series of support programs for those looking to buy property.

Useful links:

Century 21
Lamudi
Weetas

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