Bright City Lights, Saudi Arabian Nights: Buying Real Estate in Riyadh
See other ESW articles by our MENA Editor on obtaining residency for business and acquiring real estate in the Saudi Kingdom:
Jeddah Real Estate: Gateway to the Hajj and Red Sea Tourism
What is NEOM? Saudi Arabia's 21st Century Megacity
Keys to the Kingdom: Saudi Arabia's New Premium Residency Program
-- James Smith
Editor-in-Chief and Publisher, ExitStrategy.World
July 7, 2024
In a new entry of our Middle East real estate series, we will talk about Riyadh, the capital city of Saudi Arabia. But before we do so, knowing the general background of the capital, its history (old and new) and other characteristics would do you some good:
The Saudi Kingdom's population is not that large, with the total headcount coming to over 37.4 million people. The city of Riyadh is thus its largest city, with the total count of residents being over 7.8 million, and thus, it is quite large in size compared to the country's population.
It is located almost in the center of the Arabian Peninsula, and thus it serves as the capital of Saudi Arabia – and not just in political affairs, but as its economic and cultural hub.
Photo credit: Riyadh, Saudi Arabia skyline at night
Uploaded to iStock by Vadim_Nefedov April 2023
Hints of human activity in the area date back to the Pre-Islamic age. But Riyadh first became a functioning and notable city in the 1700s, when it was declared the capital of the first Saudi State. This was when the Egyptians, under directions of the Ottomans eliminated the first Saudi state, Riyadh ceased being the capital and became just another backwater city in the Arabian peninsula. That is until the Saud dynasty captured the city in 1902 and declared the foundation of the modern Kingdom of Saudi Arabia (the third Saudi state).
Riyadh's history dates back to the pre-Islamic era, but it rose to prominence in the 18th century when it became the capital of the first Saudi State. It regained its status as the capital when Abdul-Aziz Al Saud captured it in 1902, marking the foundation of modern Saudi Arabia (as the Emirate of Riyadh), within exactly 30 years, the establishment of the Kingdom would be declared in 1932.
As the capital, Riyadh is the headquarters of several major banks, multinational organizations, and government ministries. Since it is home to the King Abdullah Financial District, there are quite a lot of Islamic finance and real estate dealings in the city, as it plays an important role in the region. Such districts are usually home to Finance, Technology, Engineering and in the suburbs, Saudi Aramco Oil Refining.
Since the city is technically quite old, it has a few landmarks, such as the Masmak Palace and Fort, the National Museum of Saudi Arabia, and the Diriyah area. Bedouin food and traditional Arab cuisine makes for excellent local dining as well.
In terms of education, the city has quite a lot of universities and research institutions, notable universities include King Saud University and Princess Nourah Bint Abdulrahman University, the educational facilities specializing in anything from Islamic religious teachings to fields of studies such as engineering, architecture, medicine, and so on.
Photo credit: Kingdom Tower, Al Mamlaka business district, King Fahd Road
Uploaded to iStock by Ayman Zaid April 2024
Since the rollout of Vision 2030 that is being undertaken by Mohammed Bin Salman, Riyadh has had quite a lot of investment in order to meet ambitious State goals, with projects from NEOM, the Qiddiya entertainment city, and constructing a whole new metro, "The Riyadh Metro project will be 176km long with six lines and 85 stations, including underground, elevated and at-grade sections." There will also be new hubs for business, tourism, and culture, being constructed across the Riyadh metropolitan area.
Now, to the meat to the topic – real estate in Riyadh.
We've discussed before how you can obtain residency permits in many Arab countries, such as Qatar and the UAE, as well as some limitations on foreign ownership. Saudi Arabia is no different from the rest of its Gulf Cooperation Council (GCC) partners in this regard. The ministry channels to obtain said permits are the same, and can be found via legal agencies or Saudi government websites.
Photo credit: Typical Riyadh houses
Uploaded to iStock by 3dotsad January 2023
A mix of traditional and modern design, this mixture continues beyond the architecture. Property here consists of anything from old apartment complexes to new projects finished only a few years ago. The diversity of its real estate expands as well to its residents, local amenities such as schools, local transportation, and governmental services are not lacking as well.
2. Al Izdihar
A more modern district, its buildings are constructed under the thought of affordable and cheap housing, it does not have much landmarks, and its residents consist of blue-collar workers to middle income families.
3. Al Narjis
A relatively new addition to Riyadh, the district is still relatively new and due to that does not have much to offer. Most of the real estate in this district consists of terraced houses and villas, besides that, it is quiet and calm.
4. Al Nakheel
A much more upscale district, it mostly consists of green spaces and villas, most of its residents also consist of high-end professionals and business executives. Thus it is quite and calm, but make no mistake there are still local amenities, mostly schools and athletic clubs catering to families. The Al-Nakheel Mall is a local shopping center that features many amenities attractive to housewives and other female shoppers.
5. Diplomatic Quarter
Similar to Al-Zamalek in Cairo, this 8 square kilometer cluster is where embassies and other international NGOs exist together in a small radius. Therefore obtaining real estate and property in this region may prove quite difficult due to the many security checks and regulations. But if you do get the appropriate licenses and permits, the Diplomatic Quarter would be a nice place to live and invest in, as its well-maintained and there are various amenities, mostly catering to fellow Gulf Arabs and non-Arab wealthy diasporas in the country.
6. Al Malqa
A quite old district, recently it has been renovated and had several real estate projects being constructed inside the neighborhood limits, reintroducing vitality to its streets.
Its main perks is the new developments and quick access to the local transportation hubs and highways of Riyadh, however, it has become much more expensive than before, with empty land quickly filling up with new subdivisions.
7. Al Olaya and Sulaymaniyah
Located in the center of Riyadh, it is here where many commercial real estate properties and international brand hotels are centered, it is more akin to downtown Cairo.
Due to its valuable city center location, apartments here will be quite expensive. It is quite busy here and there can be traffic 24/7, also like Downtown, it can get crowded on busy shopping days.
These neighborhoods are expensive because they house high-end shops, offices, and luxurious residential properties.
Photo credit: Riyadh skyline King Abdullah Financial District
Uploaded to iStock by MOHAMED HUSSAIN YOUNIS September 2022
8. King Abdullah Financial District
We discussed this area in the introduction, but it is actually turning into a mixed-use development similar to Al Olaya and Sulaymaniyah.
Due to its commercial nature, most of its residents are working in financial services or fintech, since it is one of the newest districts in the city, its infrastructure and housing units are top notch.
9. Diriyah
While not necessarily a heavily, or even lightly populated district, the city by its nature will expand out here in some time, most of the people who live in Diriyah remain in traditional housings or tents in the style of their Bedouin ancestors. There are also quite a lot of “antique” hotels, and most foreigners or city residents would usually go here for tourism or to view traditional women's attire.
10. Al Murabba
One of the oldest districts in Riyadh, it is considered a historic district and has several landmarks, such as the Palace and National Museum alongside the King Abdul-Aziz Historic Center, it also has quite a lot of affordable housing. While some of this more moderately priced housing stock may considered “old”, it is of a high construction quality and still livable. The architecture designs here offering a mix of bygone eras and modernity, thus, it is a mixed-use district of both a residential and commercial nature.
11. Al-Rawdah
Al-Rawdah is residential district, and it has some greenspace including city parks. Most of its properties are of a residential nature, and range from apartments to newer luxurious villas. There is no lack of amenities here, as the area has many schools, malls, and the likes, its architecture style is mostly modern. So while this district does not have a rich history, its location is also central and allows easy access to most of Riyadh through public transportation, making it a sound area to invest in property.
12. Al-Woroud
A residential district, it has a sizeable amount of land for greenspaces, and its residential properties mostly consists of villas and residential complexes. It is more known for being calm and serene, it has no lack of amenities and its location allows for easy access throughout Riyadh as well, making it a popular hotel district.
13. Al-Maather
A central mixed-use district in the middle of Riyadh, many government institutions have their offices in this district. Known for having valuable residential and commercial properties, it is also a very modern district. There is no lack of amenities as well, with a sports club and several parks and shopping centers in this area.
14. Al-Sahafa
One of the newest districts, it is a residential district that does not lack any amenities, with schools and other facilities dotting the district. Residential property here is varied from smaller apartments to modern upper middle-class villas for professionals.