Around 5 percent of high-income expats have begun buying flats in European countries to obtain living permits in Europe, a real estate expert told Arab News.
Western countries encourage foreign investment in the real estate field by providing residency permits. The US government, for instance, supports house ownership by reducing interest rates by 2 percent. As such, houses in the US cost less than houses in the Gulf.
Talal Samarqandi, a member of the Real Estate Committee at the Jeddah Chamber of Commerce and Industry (JCCI), said European governments grant foreigners residence facilities after investing in real estate.
At the same time, a weakening Euro has encouraged many high-income expats and Saudi citizens to buy housing units in these countries.
“Many expats think it is expensive to own a house in the Kingdom. Add to that the fact that the future of expats in the Kingdom is uncertain since expats are tied to their sponsors. Most expats therefore prefer to invest in real estate in countries where they can settle permanently,” said Samarqandi.
Expats in the Kingdom have invested in real estate in Gulf countries to obtain long-term residence permits in order to be able to visit or reside within the country depending on residence laws.
According to real estate experts, expats’ real estate investments in Dubai and Abu Dhabi have exceeded SR10 billion. Qatar, for instance, began allowing expats to buy housing units from 2006 in return for long-term residence permits. Authorities in the UAE have said that foreigners who apply for such a permit must purchase a housing unit for at least AED 1 million (SR 1,020,000).
Expats in Saudi Arabia who own houses in other Gulf countries mainly include Palestinians, Indians, Lebanese, Syrians and Egyptians.
Expats turn to European real estate markets
