Kingdom of Saudi Arabia is currently one of the world’s largest economies. So it’s no wonder the oil-rich Arab land continues to be an attractive option for ex-pats. Four Winds Saudi Arabia have a helpful guide that will provide you with all the information you need to know if you are wondering is it better to buy or rent an apartment in Saudi Arabia. Living here is a unique experience, even if you have lived in the Middle East before and especially if you haven’t. Therefore, it is of the essence that you have the correct information when looking for a place to live.
Pros and cons of renting in Saudi Arabia
There are no precise figures on how many people rent in the Kingdom. However, some organizations claim that about half the population, including locals, do. As a result of such activity, the government is instituting new measures for property purchases and opportunities in the real estate of Riyadh. Add the volatile geopolitical conditions to the equation, along with the fact that living long-term in the Kingdom is not an enthralling option for most ex-pats – and you’ll be in the know of all the reason why people choose to not invest in property.
Western ex-pats usually prefer compound life. Compounds are gated premises that offer high security, higher walls, and a lot of extra security. Most people choose them after they hire our relocation services Saudi Arabia. Living within these walls feels like you are living in some familiar Western residential area. This can be a good starting point if you’re new to Eastern culture.
Is it better to buy or rent an apartment in terms of costs?
Renting a place in Saudi is cheaper compared to countries such as the United Arab Emirates and Qatar. Moreover, utilities and maintenance are often part of the rent price, which makes the answer to the question of whether it is better to buy or rent an apartment quite easily for a lot of people on a tight moving budget.
Is it better to buy or rent an apartment when it comes to contracts?
- The renting process is reasonably efficient, and contracts are set up on an annual basis. There is a good chance that you receive your agreements in Arabic, therefore you must ask for a translation in English. You should also hire an expert to give you their view on the matter.
- There are stern dos and don’ts you need to know when it comes to compounds. Strict rules you wouldn’t have in your property. Pets, for instance, are not very welcome in most places. Secondly, external guests usually have to show their ID at several checkpoints. Finally, if you are a man, single women might not be able to visit you due to compound regulations. Therefore, we suggest you double-check all clauses in your contract before you sign your rental agreement and book one of the top moving companies in Saudi Arabia.
On the other hand, even though home buying is a major expense not reserved for many people, the government is trying to change this. The Kingdom’s authorities have set up incentives to boost the real estate market in Saudi Arabia. They are in the process of investing money in building more homes to cater to demand. In the next few years, they expect to have built 500,000 new units. Besides, mortgage laws are going through a reform to encourage people to ask for loans so that they can invest in the real estate industry.
Is it better to buy or rent an apartment when you are an ex-pat?
Property laws in Saudi Arabia have relaxed, ever since allowing ex-pats to buy and own property. So is it better to buy or rent an apartment when you are an ex-pat when it comes to investment value? Experts consider homeownership to be a good investment because there is a shortage of properties on the market. The real estate industry hasn’t been able to meet the needs of the increasing population. The shortage is most noticeable in Riyadh, where more than half of the population rent instead of buying.
However, now even ex-pats can buy property in Saudi Arabia, whether it is for commercial or residential purposes. You can now invest in private land, with the option of developing. Just as long as you get approval from authorities. Mecca and Medina remain the only places immigrants cannot purchase real estate (but can inherit it) as they are holy places. The Kingdom is making an effort to keep the Saudi religion and culture intact.
To be able to rent or buy an apartment, you need approval from the ministry of interior
Factors the ministry of interior is going to consider before you get approval include your profession and financial background. There are a few factors you might want to consider before you decide whether it is better to buy or rent an apartment. If flexibility is a priority, then renting is the better option for you. On the other hand, if you intend to stay in Saudi Arabia for a longer period, then buying could save you lots of fuss. Just don’t forget to take into account all the costs concerning homeownership, such as mortgage processing fees, maintenance, settlement cost, down payments, and building insurance.
Feel free to call us after you decide
With the right help, you won’t have to worry about this financial conundrum. Nor about your upcoming move. When you have the assistance you can rely on, you will relax knowing you have left all the logistics to seasoned professionals. Whether you’re relocating from a neighboring state or across the sea, you can contact Four Winds Saudi Arabia, because we can help you prepare for relocation to the Kingdom and make it a smooth one.