Saudi nationals and expatriates are planning to deploy SAR3.57 billion ($953 million) into Saudi Arabia’s branded residential market, according to Knight Frank’s The Saudi Report 2025.
The global property consultant’s survey of 1,037 households across the Kingdom, including 100 Saudi-based expats, revealed that over two-thirds of Saudi nationals intend to purchase branded residences.
Saudis eye luxury property
Saudi nationals plan to spend SAR3.38 billion ($902.8 million), while expats are prepared to invest a further SAR187.7 million ($50 million).
Knight Frank found that interest in branded residences correlates with income and social status.
Among Saudi nationals earning over SAR50,000 monthly, 81 per cent are likely to purchase a branded residence.
The highest interest comes from Saudi nationals earning between SAR60,000 and 70,000 per month, with 89 per cent expressing a desire to own such properties.
“The branded residential sector in Saudi continues to emerge, with locations such as Riyadh’s Diriyah Gate, Al Ula and Jeddah standing out as key hotspots for branded residential operators and developers. Historically, the branded residential market in the Kingdom has been a relatively small segment of the residential sector, but this is changing rapidly,” Faisal Durrani, Partner – Head of Middle East Research said.
“The prestige factor, but more importantly the virtual guarantee of world-class facilities and property management, combined with the ability to instantly access a certain lifestyle, ‘live the brand’ and place your home in a rental pool are adding to the allure of branded residential acquisitions in the Kingdom. Indeed, two-thirds of Saudi nationals in our survey have declared an intent to purchase a branded home,” he added.
The survey indicated that 36 per cent of respondents plan to purchase a branded home within the next two to five years, while 28 per cent are interested in buying within the next one to two years. Only 15 per cent of respondents intend to make a purchase this year.
“The apparent hesitation among Saudi nationals and Saudi-based expats to purchase a branded home in 2025 could be linked to a limited range of branded residential developments and/or perhaps high pricing – branded residences often command a significant price premium and in Riyadh some branded residences are being sold for prices in excess of SAR65,000 per square metre, which is well above the non-branded market-wide average of around SAR5,500 per square metre. Even for the highest earners, the desire appears to be relatively low, with just 39 per cent of Saudi nationals earning in excess of SAR80,000 per month keen to purchase a branded home this year,” Mohamad Itani, Partner – Project Sales & Marketing, KSA explained.
Buyers prefer non-hospitality homes
Knight Frank identifies two types of branded residences: hospitality-linked, which are connected to luxury hotels, and non-hospitality-linked, which are typically associated with fashion or automotive brands.
The report reveals that 55 per cent of respondents would prefer to own a home in a non-hospitality-linked development, a preference that increases with income.
Family considerations dominate purchase decisions, with 39 per cent of respondents planning to use branded homes as their main residence. Another 31 per cent aim to buy for children or extended family, while 19 per cent cite pure investment as their motivation.
In Riyadh’s Diriyah Gate, branded residential properties trade for eight to ten times the value of unbranded homes, highlighting the premium buyers are willing to pay.
The report identifies several factors that could boost demand further. The main factor that would make branded homes more attractive is the availability of financing plans from local banks, cited by 39 per cent of respondents overall and 47 per cent of expats.
“The branded residential market in the Kingdom is still in its nascency, with just 1,775 existing branded residential units nationwide, with a further 2,500 units due by 2028,” Durrani said.
Limited property types and sizes was cited as the second most important factor needing attention to make the sector more attractive, the report added.
“More brands are lining up and eyeing opportunities across the Kingdom, which will no doubt help to satisfy the growing appetite for branded homes. The key for developers will be to offer branded homes that are on par with what is available in global gateway cities not just in terms of product, but the accompanying services, experience and of course pricing, will be critical factors in determining success,” Itani added.
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