Growth in high-end residential projects expands beyond hotels, inviting global brands in fashion, automotive, and design to capture elite homebuyers.

Saudi Arabia's real estate landscape is in the middle of a major transformation, thanks to the country’s Vision 2030. At the forefront of this transformation are branded residences, luxury homes that come with the prestige of world-renowned brands. While partnerships with top hotels have witnessed traction, a new opportunity is emerging in the country. This invites developers and investors to look beyond the traditional hospitality model and explore a more diverse, dynamic, and untapped market.

The main buyers for branded homes are the world's elite: Very High Net Worth Individuals (VHNWI) with assets over $5 million and Ultra-High Net Worth Individuals (UHNWI) with over $30 million. This marks a change from the past, when many such wealthy Saudis would purchase luxury properties in global hubs like London or Paris, causing significant investment capital to flow out of the country.

For these buyers, a branded home is more than just a place to live. It's a status symbol, a smart way to grow their investment portfolio, and a ticket to a lifestyle filled with premium amenities.

Market forces reshaping investment patterns

First, wealthy Saudis will increasingly choose to buy luxury homes in their own country, which keeps more investment within the region. As more high-end homes become available locally, less money will be spent on trophy properties overseas. Second, the country's exciting economic growth and big tourism goals will continue to attract rich buyers from all over the world.

Building successful brand alliances

To make the most of this opportunity, developers must find the right brand partners who truly connect with the lifestyle and values of their target audience. The regional presence of many global luxury brands, combined with Saudi Arabia's ongoing market reforms, creates favourable conditions for brand expansion within the country. These partnerships particularly appeal to entry-level VHNWIs who may find current hospitality-branded residences, typically positioned for UHNWIs, beyond their preferred investment range.

Addressing key challenges

However, developers need a smart plan to navigate key challenges. They will need to educate potential buyers, as many are still new to the idea of branded homes, especially in KSA. Another key challenge limiting the introduction of non-hospitality branded residences is the specialised expertise required from operators and asset managers. Unlike hotel-branded residences that have established operational frameworks, non-hospitality projects require unique skills. These projects demand expertise that combines luxury residential management with brand stewardship across automotive, fashion, or lifestyle sectors. While this specialised capability is currently limited in the market, it is rapidly emerging. As this expertise becomes more accessible, developers can explore non-hospitality partnerships with greater confidence and reduced operational concerns.

Evolving buyer preferences

As the market matures, buyers will demand more creative and international designs that function as powerful status symbols. Developers can also leverage the prominent gifting culture within affluent Saudi families to expand their target market.

Maximising competitive returns

For developers and investors shaping Saudi Arabia's new masterplans, partnering with brands in the automotive, fashion, or entertainment sectors offers a competitive edge. While masterplans in tourism locations can focus on hotel associations, these non-hospitality brand partnerships are particularly well-suited to city-based developments in major urban centres like Riyadh and Jeddah. Non-hospitality partnerships will help create unique destinations that expand market appeal locally as well as globally, enhance developer profiles and investor portfolios, and help maximise returns.

At JLL, our experts leverage global brand insights and local market data to provide the data-driven strategy and guidance you need to turn this unique opportunity into a market-leading success. To learn more, visit JLL MENA.