Acquiring and renovating historic homes in Saudi Arabia has emerged as a significant real estate investment trend in recent times, driven by various factors, with cost-efficiency and time considerations being at the forefront. Nowadays, Saudi residents actively seek out such properties in numerous regions across the country, embarking on projects to restore these houses to their former glory, often resulting in beautifully refurbished, vintage homes.
Traditionally, people sought out these types of houses primarily for stability rather than as investment opportunities. Key motivators included the soaring costs of land, steep wages for construction workers and engineering design firms, the exorbitant prices of construction materials, and the enduring appeal of the classic design of old houses among Saudis. Some even hold the belief that these older structures are more durable and constructed with superior materials compared to modern buildings.
Another contributing factor that has encouraged the shift towards these properties is the assistance offered by banks. They have started offering financial support and loans for the purchase and restoration of old homes, significantly boosting the demand for such properties when compared to the larger loans needed for modern buildings and residences.
Initially, the focus was primarily on limited purchases for personal housing and stability. However, it subsequently evolved into a form of investment, with numerous investors showing interest in acquiring old houses, refurbishing them, and reselling them at lucrative prices, thereby driving up demand and causing a recent surge in their market value. Nevertheless, old houses continue to be a favoured choice for many, especially within the capital city of Riyadh, where such properties remain readily available.