Diriyah Company, the developer behind the transformation of Saudi Arabia’s historic district into a major tourism project, is set to sell luxury homes in its Wadi Safar community as part of its residential strategy. The company plans to offer between 40 and 50 units, with a minimum price tag of $25 million each. These upscale units, located in Wadi Safar to the west of Diriyah, are specifically aimed at ultra high-net-worth buyers and have already generated a waiting list, according to Diriyah Company CEO Jerry Inzerillo.
The Wadi Safar development will not only include luxury homes, but also a championship golf course and a polo club. Inzerillo compared the overall vision for Diriyah, including Wadi Safar, to Beverly Hills in Los Angeles, stating that it will be a pedestrian-friendly cultural heritage site in comparison to Riyadh’s bustling metropolis. He referred to Wadi Safar as the “Bel Air” of Diriyah, catering to a very high-net-worth clientele.
The residential sales in Diriyah are part of Saudi Arabia’s plan to develop Riyadh into one of the world’s top 10 cities, with an estimated population of 15 million by 2030. To accommodate this projected growth, real estate projects, including a variety of housing options, are being added to the Diriyah project. In addition to the luxury homes in Wadi Safar, Diriyah Company has also put on sale 106 Ritz Carlton-branded luxury villas with prices ranging from SAR 9 million ($2.4 million) to SAR 26 million.
Inzerillo explained that the decision to test the high end of the market with these luxury properties was made to gauge market demand. The response has been positive, with over SAR 1 billion in deposits received for more than 71 of these residences. The remaining villas have been reserved for top government officials and royalty.
Diriyah Company’s residential sales centre showcases a model of the luxury villas, which are designed in the Najdi architectural style and range from 315 square meters to 860 square meters in size. Inzerillo expressed satisfaction with the success of understanding the market and gaining insights into both the low and high ends of the housing market.
The larger Diriyah project, with an estimated cost of $63.2 billion, is planned to cover 14 square kilometers and will feature 42 hotels, over 100 restaurants, nine museums, and 30,000 homes upon completion in 2030.
The residential plans in Diriyah come at a time of accommodation shortage due to an influx of residents into the kingdom. Saudi Arabia offers a 30-year tax break to entice global companies to establish their regional headquarters in the country, further driving the need for housing options. House prices in Riyadh have risen by 45% to 50% since January 2020, which has begun to dampen demand. However, the influx of domestic migrants and foreign workers has created more demand for rental properties, with 62% of the capital’s residents preferring to rent rather than own.
To meet the growing demand, the Ministry of Housing is working on providing affordable options and aims to achieve the government’s target of 70% home-ownership by 2030. The Knight Frank report states that several affordable housing projects have already been delivered, adding around 23,000 units in the first half of 2023.
‘Saudi Arabia’s Silicon Valley’
Diriyah’s residential strategy encompasses a wide range of housing options to cater to Saudis and residents who will live and work in the area. The district is expected to become a “walkable” city centered around Saudi Arabia’s culture and heritage. In addition to luxury homes, Diriyah will also host Saudi Arabia’s version of “Silicon Valley,” with 500 technology companies, 100 media companies, and 50 entertainment companies planning to establish a presence there. This development is anticipated to create demand for studio apartments, one-bedroom, and two-bedroom houses. Initially, the residential units will be available for rent, with plans for freehold property in the future.
Diriyah’s master plan emphasizes a pedestrian-friendly environment, aligning with the vision of Saudi Crown Prince Mohammed bin Salman. The aim is to create a quality of life that encourages people to walk, bike, or scooter to their destinations, fostering a city atmosphere. With its ambitious vision, Diriyah is set to become a thriving cultural and economic hub in Saudi Arabia.