A Futuristic City:
As Saudi Arabia boldly transforms its economy with the Vision 2030 initiative, one of its most ambitious projects, The Line, captures the imagination of prospective property buyers worldwide. Positioned as the world’s first fully sustainable linear city, this mega-development is more than a unique architectural feat; it is set to redefine modern urban living.
In this article, we explore how you can buy property in this forward-looking development and what potential buyers should consider before committing to such a high-profile investment.
Understanding The Line:
The Line, a 170-kilometre city within Saudi Arabia’s NEOM project, is being constructed with sustainability, innovation, and future living in mind. Designed to house up to 9 million residents, the city promises car-free living with clean air and convenient access to every essential service within a five-minute walk.
Unlike conventional cities that spread horizontally, The Line will rise vertically, with homes, offices, schools, and entertainment areas stacked in a hyper-connected way. This innovative approach aims to revolutionise city living, making daily commutes obsolete.
Why Buy in The Line?
For investors, buying property in The Line offers a rare opportunity to invest in a city of the future. The combination of sustainability, innovative urban design, and high-tech infrastructure makes it an attractive option for buyers looking to secure prime real estate.
NEOM’s aim is to create a business hub that rivals the likes of Silicon Valley, while offering luxury living spaces integrated with smart technology. Given Saudi Arabia’s effort to diversify its economy, The Line represents a forward-looking opportunity for investors seeking early entry into a growing market.
According to reports, NEOM will contribute up to £100 billion annually to Saudi Arabia’s economy once completed, making it a key driver of future growth. Its appeal extends globally, attracting interest from entrepreneurs, innovators, and expatriates.
What’s the Cost?
Property prices in The Line are expected to compete with those in global cities such as London, Paris, or Dubai. Early reports suggest that luxury apartments will cost between £1 million and £5 million, though more affordable units are likely to be available. As a comparison, prime real estate in London averages around £2,000 per square foot, which means The Line will offer similarly high-end pricing, but with the allure of living in a city that promises no pollution and state-of-the-art amenities.
For more modest buyers, there may be smaller apartments available from £500,000, but these details have yet to be officially confirmed. It’s worth keeping in mind that as construction progresses, prices may fluctuate based on demand and the overall success of the development.
Legal Considerations for Foreign Buyers:
Unlike some Gulf states, Saudi Arabia permits foreigners to purchase property. However, the rules governing property ownership in The Line remain under development, as NEOM has its own regulatory framework. This separate governance structure, designed to attract international buyers and investors, is expected to be more flexible than the national legal system.
While Saudi Arabia’s broader laws are conservative, NEOM aims to offer a more liberal lifestyle. Nevertheless, it is essential to engage a lawyer with knowledge of both Saudi and NEOM property laws to navigate the legal aspects successfully. Buyers should also be aware that there is currently no residency or citizenship programme attached to property purchases, though this may change as The Line develops.
Financing and Payment Options:
In Saudi Arabia, most property transactions are conducted in cash. However, given The Line’s significance, it is likely that banks will offer competitive mortgage options for buyers, including international investors. Still, financing options may not be as widely available or as affordable as in Europe or the US, so it’s crucial to plan your finances carefully.
For international buyers, securing financing in their home country may be an alternative. Given that The Line is still in the early phases of development, off-plan purchases will be the most common route for now. Buyers must weigh the risks associated with off-plan developments, including construction delays and changes in the final design.
Tax and Fees:
Saudi Arabia’s tax system is appealing for property buyers, particularly for expatriates. There is no income tax on personal earnings, and capital gains tax is limited. Buyers will, however, need to pay a property registration fee, currently set at 5% of the purchase price. Ongoing property taxes are minimal, making Saudi Arabia a potentially more attractive location compared to other global cities with higher ongoing costs.
However, with NEOM developing its own regulations, it’s advisable to check for any additional taxes or fees that may apply within this special zone. Consulting a tax advisor will help ensure you’re fully informed about any liabilities.
What Type of Properties Will Be Available?
Given The Line’s vertical design, buyers will have a range of modern apartment options, from studio units to family-sized apartments. Smart home technology will be embedded throughout, allowing residents to control lighting, heating, and energy use through AI systems designed to reduce carbon footprints.
For buyers with more significant budgets, luxury penthouses will offer stunning views of the Red Sea or the desert, complete with private terraces and top-tier amenities.
Though traditional homes will not be part of The Line’s design, the sleek and compact units available will come with shared green spaces, pools, and entertainment areas, ensuring a high standard of living.
How to Buy Property in The Line: Step-by-Step:
Here’s a simplified breakdown of how to proceed with your purchase in The Line:
Research the Market: Engage a local real estate agent familiar with NEOM and The Line to understand the market and identify available properties.
Legal Representation: Ensure you have a lawyer who specialises in Saudi property law and understands NEOM’s specific regulations.
Secure Financing: Explore your financing options early, either with local Saudi banks or international institutions that may offer loans for NEOM properties.
Reservation: Place a reservation on the property of your choice by making a deposit, usually around 10-20% of the property price.
Sales Agreement: Review the sales contract carefully and seek legal advice to ensure there are no hidden clauses.
Completion and Handover: Once the property is completed, you’ll make the final payment and transfer ownership.
A Groundbreaking Investment Opportunity:
As The Line continues to take shape, it offers a once-in-a-lifetime opportunity to be part of a groundbreaking city. Investing in property here means not just buying a home, but stepping into a future designed for sustainable, high-tech living.
With significant financial backing and a strategic location, The Line is more than just a conceptual city—it’s the future. Whether you’re an investor seeking returns or a homeowner looking for a unique lifestyle, the opportunity is here.