Saudi developer Arabian Dyar is seeking foreign buyers after launching the second phase of its 10 billion Saudi riyals ($2.6 billion) Makkah development. It comes before the kingdom's new real estate law, which opens up investment to international buyers, takes effect next year.
The company is selling 1,000 units in three residential towers as part of phase two development of Dyar Al Haram project in Makkah, its chief executive told The National at the Cityscape Global exhibition in Riyadh.
The towers will include fully-serviced apartments, penthouses and family units, as well as retail and hospitality elements.
Prices range between 1.5 million riyals for a small unit to 17 million riyals ($400,000 to $4.5 million) for a larger unit.
The overall project will be built in four phases and is set to be completed by 2032. It will have 4,000 units across 13 towers when all phases of construction work are finished.
Located 550 metres from the Grand Mosque, Dyar Al Haram is one of closest large-scale residential developments to Al Masjid Al Haram. The project is part of the Masar Destination urban corridor.
“We almost sold the first phase of the project, consisting of 400 units, and there is a great demand for second phase with many people and property agents from around the world asking when they can start buying it,” said Naif Alatawi.
Currently, the project is being sold only to Saudi nationals but when the updated property ownership law come into effect from January, Muslims from outside can also start buying homes, he added.
This year, the kingdom updated its rules to allow foreigners to buy property in specific zones in Riyadh and Jeddah, with “special requirements” for home ownership in Makkah and Madinah.
It is also permitting foreign citizens to invest in publicly listed local companies that own property in Makkah and Madinah, as the kingdom seeks to attract more international investment.
Earlier this month, Saudi Arabia's Crown Prince Mohammed bin Salman also launched a new mixed-use mega project in Makkah that is set to create more than 300,000 jobs by 2036.
The project, spanning 12 million square metres next to the Grand Mosque is being developed by Rua AlHaram AlMakki, a unit of kingdom’s sovereign wealth fund, Public Investment Fund.
Arabian Dyar, a family-owned business that started in 2011, has 15 billion riyals worth of projects in its portfolio in Riyadh, Jeddah, Makkah, Madinah and Yanbu, consisting overall of more than 10,000 units.
It also plans to start a new residential project worth up to 600 million riyals in Jeddah next year, in partnership with developer Roshn.
This month, the company also signed an agreement valued at 142 million riyals with the Saudi Authority for Industrial Cities and Technology Zones (Modon) to develop and construct ready-made factories in Jeddah as part of its local expansion plans.
The funding of projects is mainly done through money generated by selling homes, with bank financing accounting for 20 per cent, Mr Alatawi said.
The company is also focusing on integrating AI technology into its operations and signed a $100 million deal with Google during Future Investment Initiative summit in Riyadh earlier this month to help it become a “smart real estate developer”, he said.
