Riyadh's Ultra-Luxury Residential Market
Riyadh's luxury residential market is experiencing extraordinary growth. Per Knight Frank, branded residences in Riyadh command SAR 65,000+/sqm — a 12x premium over non-branded stock at SAR 5,500/sqm. The segment has 1,775 existing branded units with 2,500 additional by 2028 (a 140% growth rate). Private capital targeting branded residences: SAR 3.57 billion ($953 million), with 67%+ of Saudi nationals indicating intent to purchase a branded unit per Knight Frank survey.
Villa prices rose +12.4% YoY to SAR 5,396/sqm. Apartments: +10.5% to SAR 6,100/sqm. Cumulative apartment appreciation since 2019: 75%. Al Taawun district leads at +32% to SAR 9,470/sqm. Luxury areas Al Olaya and Al Nakheel reach SAR 10,500+/sqm. Premium northern compounds: SAR 8,660/sqm. The luxury residential market alone is valued at $15.51 billion in 2025, projected to reach $20.75 billion by 2030 at 6% CAGR per S&P Global.
Branded Residence Landscape
Riyadh's branded residence portfolio includes: Four Seasons, Ritz-Carlton (Marriott), Armani, Bvlgari, Mouawad (SAR 880 million development), Trump Tower Jeddah, Etoile by Elie Saab, Raffles, and several undisclosed ultra-luxury projects. Branded residences deliver 25-35% higher capital appreciation and lower vacancy than non-branded equivalents per JLL. New Murabba alone adds 90,000 residential units including ultra-premium branded towers positioned to command the highest per-sqm pricing in Saudi Arabia.
Foreign Ownership Framework
The Non-Saudi Real Estate Ownership Law (Royal Decree M/14, effective January 22, 2026) permits foreign nationals to own residential property in Saudi Arabia for the first time. REGA administers the registration process. Makkah and Madinah are excluded. Premium Residency Visas available for investments of SAR 4 million+. Combined with CMA's QFI abolition (February 1, 2026), the regulatory environment creates full market access for international luxury property buyers.
Mortgage & Finance
The Saudi mortgage market: SAR 932.8 billion outstanding (+550% since 2016). Both conventional and Islamic (murabaha) mortgage structures available. Rates: 5.5-7.5% APR following SAMA rate cuts. SRC issued first RMBS August 2025 — $2 billion sukuk 6x oversubscribed. SRC targets refinancing SAR 170 billion by 2026. Homeownership has risen to 63.7% from below 50% pre-Vision 2030, with a 70% target by 2030. Riyadh's housing deficit of 305,000 units (for population growth to 9.6 million) sustains structural demand and price support.
Rental Yields & Returns
Riyadh rental yields: 8.89% — significantly outperforming Dubai (5-7%), Abu Dhabi (6-8%), London (3-4%), and New York (4-5%). The yield premium reflects strong demand from 660+ multinational HQ relocations, expat influx (Saudi Arabia's 13.4 million expatriate population), and young Saudi household formation. Premium furnished apartments near business districts generate 6-9% gross yields. Short-term rental rates projected to triple during Expo 2030 period — making properties near the Expo site exceptionally attractive for rental investment strategies.
Regulatory Environment: 2026 Reforms
Saudi Arabia's regulatory landscape underwent transformative change in early 2026. The Non-Saudi Real Estate Ownership Law (Royal Decree M/14, effective January 22, 2026) permits foreign ownership of commercial and residential property for the first time. The Capital Market Authority (CMA) abolished the Qualified Foreign Investor regime on February 1, 2026 — all foreign investors now eligible for Saudi capital markets, REITs, and tokenized assets. REGA has approved 9 real estate tokenization platforms (Ghanem, Jozo, Sahl, Madak, Nola, HissaTech, Hseel Tech, Dropp, Gamma Assets), with comprehensive regulations expected June 2026. The Saudi Depositary Receipts framework (July 2025) adds cross-listing capabilities. These reforms collectively create the most accessible investment environment in Saudi history.
Vision 2030 Strategic Context
Vision 2030's 96 strategic objectives across 13 Vision Realization Programs (VRPs) systematically generate demand across every sector covered by the Riyadh Intelligence Network. Key targets: 150 million annual tourists by 2030 (122 million achieved 2025), unemployment below 7%, female workforce participation above 30% (achieved), homeownership at 70% (from 63.7%), entertainment spending at 6% of household budgets, and GDP contribution from non-oil sectors exceeding 50%. Each target translates into measurable demand for infrastructure, services, housing, and expertise — creating multi-year investment opportunities with structural government backing. The Kingdom's construction pipeline: $819 billion across 5,200+ active projects.
Conclusion
Riyadh offers a generational opportunity powered by unprecedented government commitment ($925 billion+ PIF), structural demographic demand (70% under 35, population growing to 9.6 million by 2030), transformative regulatory reform (foreign ownership, QFI abolition), and dual mega-event catalysts (Expo 2030, FIFA 2034). The combination of $819 billion in active construction, zero personal income tax, SAR-USD peg stability, and the most comprehensive market opening in Saudi history creates an investment environment unmatched by peer cities in the Gulf, Asia, or broader emerging markets. This platform provides the intelligence infrastructure for informed professional participation.