Market research & Development
Why Invest in Saudi Arabia’s Off-Plan Property Market
Saudi Arabia’s real estate sector is a cornerstone of Vision 2030, a strategic framework launched in 2016 to reduce oil dependency and foster economic diversification. The initiative has spurred massive infrastructure development, including new cities, transport networks, and luxury real estate projects. Jeddah and Riyadh, in particular, are witnessing rapid growth as commercial and cultural hubs, with off-plan properties attracting both local and international investors.
Off-plan investments offer several advantages. Buyers can secure properties at pre-launch prices, often significantly lower than completed units, positioning them for substantial capital gains upon project completion. Flexible payment plans, typically spread over the construction period, make these investments accessible to a wide range of budgets. Additionally, Saudi Arabia’s investor-friendly policies—such as 100% foreign ownership, zero income tax on property sales, and premium residency for investments exceeding 4 million SAR—enhance the appeal. The Kingdom’s stable currency, pegged to the US dollar, further mitigates financial risk, making it a compelling destination for global capital.
The demand for luxury residences is rising, fueled by a growing expatriate population, increasing tourism, and a young, affluent demographic. Off-plan projects in prime locations are well-positioned to meet this demand, offering high rental yields (6-7% annually in some areas) and long-term value growth, especially in cities poised to host global events. With these dynamics in mind, let’s dive into two of the most promising off-plan projects in Saudi Arabia.
1) Trump Tower Jeddah
Project Overview
Located along the iconic Jeddah Corniche, Trump Tower Jeddah is a 47-story residential skyscraper set to redefine luxury living in Saudi Arabia’s coastal gem. Scheduled for completion in December 2029, this development features over 300 apartments, ranging from 1- to 4-bedroom units and 3- to 4-bedroom penthouses, with sizes spanning 753 to 3,931 square feet. Each residence boasts terraces with panoramic views of the Red Sea, blending modern elegance with timeless sophistication.
The architectural design, crafted by world-renowned Gensler Architects, reflects Jeddah’s cultural heritage while embracing contemporary luxury. Premium finishes, high-end appliances (such as Smeg or equivalent), and spacious layouts cater to discerning buyers seeking both comfort and prestige. Select 3- and 4-bedroom units, as well as all penthouses, include staff quarters, enhancing practicality for families and high-net-worth individuals.
Strategic Location
Jeddah, Saudi Arabia’s second-largest city, is a vibrant commercial and cultural hub on the Red Sea coast. Its Corniche waterfront, where Trump Tower is situated, is renowned for picturesque beaches, upscale dining, and landmarks like the Floating Mosque and Jeddah Yacht Club & Marina. The project’s proximity to King Abdulaziz International Airport (20 minutes by car) and major attractions like Red Sea Mall (10 minutes) ensures seamless connectivity and lifestyle convenience. Nearby educational institutions, such as Jeddah International School, and medical facilities make it an ideal choice for families.
Jeddah’s rising status as a global business and tourism destination, bolstered by its role as the gateway to Mecca, drives strong demand for luxury residences. The city’s real estate market has seen steady price growth, with off-plan properties offering significant potential for capital appreciation and rental income, particularly in high-demand areas like the Corniche.
Investment Potential
Trump Tower Jeddah is designed for investors seeking both lifestyle and financial returns. Starting prices as of Q4 2024 average at £454,000, with a flexible 90/10 payment plan requiring a 20% deposit upon booking. Investors can sell their units during the development phase after paying 40% of the purchase price, allowing for early profit realization. Upon completion, a one-time 3% registration tax applies, with no additional taxes on profits from property sales, maximising returns.
The project’s exclusivity is enhanced by the Trump Members Club, a private social venue offering fine dining, a cigar lounge, wellness facilities, pools, and a gym. Accessible only to residents, this club hosts prestigious events, fostering a community of influential individuals and adding significant value to the investment. With Jeddah’s luxury real estate market projected to grow in anticipation of global events like Expo 2030, the project is poised for strong capital gains and rental yields, particularly for short-term lets catering to tourists and business travelers.
Why It Stands Out
Trump Tower Jeddah combines a globally recognized brand with a prime seafront location, setting a new standard for luxury in the region. Its architectural pedigree, premium amenities, and investor-friendly structure make it a top choice for those looking to capitalize on Jeddah’s booming real estate market. The project’s alignment with Saudi Arabia’s vision for urban transformation ensures it will remain a landmark of prestige and profitability.
2) Neptune Interiors by Mouawad
Project Overview
Situated in the Sedra district of Riyadh, Neptune Interiors by Mouawad is a premium residential complex offering luxurious three-story villas with five bedrooms, ranging from 300 to 420 square meters. Set for completion as part of Riyadh’s Vision 2030-driven development, this project stands out for its collaboration with Mouawad, a jewelry house renowned for record-breaking diamond creations. The interiors, crafted with Mouawad’s signature elegance, feature exquisite finishes, spacious terraces, and panoramic views of the Wadi Hanifa valley, creating an atmosphere of privacy and sophistication.
The villas blend modern design with traditional Saudi architectural elements, incorporating advanced technology and sustainable features. Each home includes staff quarters, private parking with electric vehicle charging stations, and state-of-the-art kitchens, catering to high-end buyers seeking exclusivity and functionality. Expansive roof gardens and outdoor spaces enhance the living experience, making these villas ideal for families and investors alike.
Strategic Location
Riyadh, Saudi Arabia’s capital, is a dynamic hub for business, culture, and innovation, with its real estate market fueled by Vision 2030’s focus on urban development. The Sedra district, located near key transport routes and city infrastructure, is a prime investment zone benefiting from planned infrastructure upgrades, including new metro lines and commercial centers. King Khalid International Airport is just 15 minutes away, making the complex attractive to business professionals and frequent travelers.
The Sedra community offers top-tier amenities, including schools, sports facilities, public parks, and healthcare clinics, ensuring a vibrant and convenient lifestyle. Its central location provides easy access to Riyadh’s business districts and cultural landmarks, positioning it as a high-demand area for both residents and renters.
Investment Potential
Starting at £542,423 (as of September 2024), Neptune Interiors by Mouawad villas are priced for the premium market, with strong potential for long-term value growth. Riyadh’s real estate market is expected to see property price increases of 7-10% in the coming years, driven by Vision 2030’s infrastructure investments. Rental yields in Sedra have historically ranged from 6-7%, making these villas a lucrative option for income-focused investors.
The project’s unique branding, with interiors by Mouawad, adds significant resale and rental appeal, as branded residences command premium prices globally. Investors benefit from Saudi Arabia’s tax advantages, including a 30-year corporate tax exemption for foreign companies establishing regional headquarters and zero income tax on property profits. For those investing 4 million SAR or more, premium residency offers exclusive rights and long-term stability, further enhancing the project’s allure.
Flexible payment options, including cash, cryptocurrencies, credit cards, or bank transfers, are available, with funds held in secure escrow accounts to protect investors. The project’s alignment with Vision 2030 ensures government oversight and robust investor protections, minimizing risks and fostering confidence.
Why It Stands Out
Neptune Interiors by Mouawad combines unparalleled design pedigree with Riyadh’s high-growth potential, offering a rare opportunity to own a branded villa in a rapidly developing capital. Its fusion of traditional and modern aesthetics, coupled with premium amenities and a strategic location, positions it as a standout choice for investors seeking both prestige and profitability.
Key Considerations for Off-Plan Investments in Saudi Arabia
Investing in off-plan properties requires careful planning to maximise possible returns and minimise exposure to risk. Here are some critical factors to consider when evaluating projects like Trump Tower Jeddah and Neptune Interiors by Mouawad:
- Developer Reputation and Track Record: Ensure the developer has a proven history of delivering high-quality projects on time. Both projects discussed benefit from established developers with global portfolios, reducing delivery risks.
- Location Analysis: Prime locations with strong infrastructure and connectivity, like Jeddah’s Corniche and Riyadh’s Sedra district, offer the best prospects for appreciation and rental demand.
- Payment Flexibility and Transparency: Look for projects with clear payment plans and secure escrow accounts to safeguard investments. Both projects offer investor-friendly terms, with transparent processes.
- Market Trends and Future Catalysts: Saudi Arabia’s hosting of Expo 2030 and the FIFA World Cup 2034 will drive tourism and economic growth, boosting demand for luxury properties in key cities.
- Amenities and Branding: Projects with unique features, such as branded interiors or exclusive clubs, attract premium buyers and renters, enhancing long-term value.
Looking forward
Saudi Arabia’s off-plan property market is a goldmine for investors seeking high returns in a rapidly evolving economy. Trump Tower Jeddah and Neptune Interiors by Mouawad exemplify the Kingdom’s commitment to luxury, innovation, and global appeal. The former offers a seafront masterpiece in Jeddah, poised to capitalize on the city’s tourism and business boom, while the latter delivers exclusive villas in Riyadh, blending cultural heritage with modern sophistication. Both projects align with Vision 2030’s transformative goals, offering investors early access to high-growth opportunities with tax advantages, flexible payments, and strong market fundamentals.
As Saudi Arabia cements its position as a global investment hub, off-plan projects in prime locations will continue to deliver exceptional value. By focusing on strategic locations, reputable developers, and market catalysts, investors can unlock significant returns in one of the world’s most dynamic real estate markets. Whether drawn to Jeddah’s coastal prestige or Riyadh’s urban vitality, these projects represent the pinnacle of opportunity in Saudi Arabia’s property landscape.
