17-02-2025
Saudi Arabia's Red Sea Residences draw early buyers at $1.5mn starting price
Red Sea Global has sold more than 12 per cent of its ultra-luxury homes on Saudi Arabia's western coast before the official market launch, with prices starting from SAR5.5 million ($1.47 million) for a one-bedroom property, as the developer taps into growing regional demand for premium coastal real estate.
The pre-sales success of the multi-billion riyal development on Shura Island signals a strong appetite from wealthy Gulf investors for Saudi Arabia's emerging luxury tourism destinations, with the developer primarily targeting buyers from the kingdom and neighbouring Gulf countries.
'Even before the residences hit the open market, we sold more than one in eight properties at Shura Island, demonstrating the strength of demand for these distinctive, ultra-luxurious homes in an unrivalled setting,' Nicholas King, Group Chief Development Officer at Red Sea Global, told Arabian Business.
The residential portfolio includes 75 Four Seasons-branded villas spanning 414 to 534 square metres, offering views across the development's golf course and the Red Sea. The project also features 15 SLS residences ranging from 130 to 423 square metres, and 36 marina apartments between 190 and 364 square metres.
Saudi Arabia's recent legislative reforms have sweetened the deal for international investors, with the kingdom now offering Permanent Residency visas to foreign buyers investing more than SAR5 million in property. The initiative forms part of the country's broader push to diversify its economy beyond oil and develop its tourism sector.
'Currently we are targeting buyers from the Kingdom and the GCC region because we know that is where the demand for homes on the Saudi Red Sea coast is strongest,' King said. While initial sales have focused on regional buyers, the company has already secured international purchasers and plans to actively expand its global marketing efforts.
The development, scheduled for handover by the end of 2025, sits within the broader Red Sea destination that welcomed its first hotel guests in 2023. The location features high-end retail and dining options, including restaurants led by Michelin-starred chefs, alongside luxury marinas and the kingdom's first 18-hole island golf course.
Red Sea Global's expansion plans extend beyond Shura Island. The developer is set to open its wellness-focused AMAALA destination later this year, which will include additional residential offerings. A new integrated resort island community is also planned to come to market in late 2025, targeting multi-generational living.
By the end of 2025, the company aims to have opened 25 resorts across its destinations and delivered approximately 450 luxury residences. The developments are served by the Red Sea International Airport, which began international operations in April 2024 with twice-weekly flights to Dubai.
When asked about potential plans for an initial public offering of its residential division, the developer indicated its current focus remains on operational execution. 'Right now, we're focused on the success and ramp-up of our already open hotels and residential communities, as well as continuing to deliver on our development pipeline,' King said.
The project's accessibility has been enhanced by its strategic location, with the Red Sea International Airport situated within three hours' flying time of 250 million people and eight hours from 85 per cent of the world's population, positioning it as a competitive destination in the global luxury real estate market.
The residential launch comes as Saudi Arabia continues its ambitious tourism development agenda, with Red Sea Global's projects playing a pivotal role in the kingdom's vision to create world-class destinations along its western coastline.
