RIYADH: NEOM, Saudi Arabia's $500 billion project, tops the wishlist of homebuyers in the nation, according to a new survey.
The Knight Frank’s annual 2022 Saudi Residential survey, carried out in partnership with YouGov, found out that NEOM is the most preferred location to buy a home by the Kingdom’s homeowners, first-time buyers, and high net worth individuals.
According to the survey, The Red Sea Development Co., or TRSDC, project came next to NEOM in terms of buyers' desirability.
The research team made this conclusion after surveying 1,003 households, and 55 HNWI in Riyadh, Jeddah, and Dammam.
It said that 41 percent of the participants find NEOM the most attractive Giga project in the Kingdom to buy a home. 44 percent in Dammam found it the most appealing Giga project, while 36 percent of the first-time home buyers believe NEOM is the best location for their first home.
“The gargantuan NEOM has clearly captured the imagination of Saudis all across the Kingdom, with the appetite to purchase here amongst tenants, homeowners, and HNWI running above 70 percent. Indeed most are even willing to pay a premium for the privilege of living, or owning a home here,” said Faisal Durrani, Partner and Head of Middle East Research, Knight Frank.
Additionally, the Knight Frank’s HNWI survey showed that 97 percent of the group are likely to make a purchase in NEOM, with the 60 percent naming it as a Giga project they would most be interested in buying a home in.
Saudi Residential Survey also revealed that 73 percent of HNWI in the Kingdom are planning to buy a second home over the next 12 months, with 50 percent preferring villas to apartments for their acquisition.
Regarding Saudi homeowners, the survey showed 44 percent are looking for a second home for personal use.
“What’s more, the scales are relatively evenly balanced in terms of the intended use, with 49 percent of homeowners saying the purchase would be driven by investment considerations, specifically rental yields, while 44 percent say it will be solely for family use,” Durrani said.
“These findings will undoubtedly strengthen the resolve of the Kingdom’s Giga project developers to deliver their planned mostly-luxury residential developments,” he added.