Saudi Arabia is poised to emerge as the Gulf’s fastest-growing branded homes market, propelled by the anticipated opening of freehold property ownership to foreigners in 2026. With a burgeoning population and escalating demand for housing, experts are optimistic about the transformation this legal change will bring to the country’s real estate landscape. According to Guy Hutchinson, Hilton’s regional president for the Middle East and Africa, the integration of international buyers will significantly alter the dynamics of branded residential properties across the kingdom.
Pivotal Legal Changes on the Horizon
Guy Hutchinson remarked that the forthcoming legal reforms will serve as a “significant catalyst” for the growth of branded homes in cities like Riyadh, Jeddah, and the holy cities of Mecca and Medina. He emphasized that, until now, this market segment has trailed behind that of the United Arab Emirates. “Saudi Arabia is only at the starting point of its branded residential journey, but once foreign ownership opens, the market will expand very quickly,” he noted. Hutchinson pointed out that the strong underlying fundamentals and recent reforms will attract a new class of buyers eager to invest in the region.
Increased Demand Amidst Housing Challenges
As Saudi Arabia prepares to permit foreign ownership of residential real estate by early 2026, the timing aligns with unprecedented levels of migration into the kingdom. Many multinational firms are now required to establish regional headquarters in Saudi Arabia to retain access to government contracts, resulting in heightened demand for housing amidst already constrained supply, particularly in Riyadh. The influx of residents is putting additional pressure on a housing market that is already facing challenges.
Strategic Developments and Investment Opportunities
Hutchinson believes the interplay of legal reforms, demographic trends, and bolstered investor confidence positions Saudi Arabia as a vital player in the branded residential market, potentially parallel to Dubai, which has long set the standard worldwide. Hilton has already initiated its first branded residential project in the kingdom, Curio Residences OSUS Eye in Riyadh, designed to cater to both domestic and international buyers when the market opens. “There is a very diverse buyer mix in the Gulf and Saudi will be no different,” Hutchinson stated, highlighting the varied interests of potential homeowners and investors.
Influence of the Premium Residency Scheme
The kingdom’s Premium Residency scheme is expected to further propel demand by allowing foreign buyers to acquire residency through property purchases, contingent on buying a fully paid residential property valued at no less than SAR4 million. This residency remains valid as long as the buyer retains ownership of the property, thereby enhancing the attractiveness of investment in the kingdom’s real estate market.
While Dubai continues to be the premier destination for branded residences, Hutchinson forecasts that Saudi Arabia will quickly catch up. With ongoing developments of mixed-use and standalone branded projects, strengthened by substantial tourism and infrastructure investments under Vision 2030, the country is set to gain significant traction. “The Gulf is going to lead the next phase of branded residential growth, and Saudi Arabia will be a major part of that,” he asserted. The evolving market promises to reshape buyer profiles as well, moving towards long-term residents and expatriate homeowners.
As the kingdom boasts one of the largest hotel development pipelines globally, Hutchinson anticipates that the growth of branded homes will coincide with ongoing hotel construction as new districts emerge across Riyadh and other cities. This multifaceted growth signals a bright future for the sector, reaffirming Saudi Arabia’s commitment to becoming the Gulf’s fastest-growing branded homes market.