A Futuristic City: The Line – Investment in the City of the Future
As Saudi Arabia undergoes a dramatic transformation under its Vision 2030 initiative, one of its most ambitious projects, The Line, is emerging as a revolutionary urban development. This 170-kilometer, fully sustainable city within the NEOM project promises to redefine the future of living, making it an enticing opportunity for prospective property buyers and investors.
In this guide, we will explore the intricacies of purchasing property in The Line and what investors should consider before making such a significant investment. ( NEOM Project: How to Invest in the City of the Future )
Read: Saudi Arabia’s Property Market
Understanding The Line
The Line is part of the larger NEOM mega-project and is designed as a vertical city stretching across the desert. It is built on sustainability, innovation, and future urban living. With its car-free zones and all essential services within a five-minute walking distance, the city plans to house up to 9 million residents in a highly interconnected environment.
Unlike traditional cities that expand horizontally, The Line rises vertically, with homes, offices, schools, and entertainment venues stacked in smart layers, reducing the need for transportation and promoting environmental sustainability.
Read: Saudi Arabia’s Property Revolution
Why Buy in The Line?
For property investors, The Line represents a unique opportunity to own real estate in a city designed for the future. The project’s blend of sustainability, cutting-edge technology, and high-tech infrastructure appeals to those looking to be part of a groundbreaking development.
NEOM is set to become a global business hub, attracting entrepreneurs, expatriates, and innovators from around the world. Once completed, NEOM, including The Line, is expected to contribute up to £100 billion annually to Saudi Arabia’s economy, offering strong growth potential for property investors. ( THE LINE: a revolution in urban living )
Read: Saudi Arabia’s Luxury Real Estate Market
What’s the Cost?
Property prices in The Line are projected to be comparable to luxury real estate in global cities like London, Paris, and Dubai. Early estimates suggest that luxury apartments may range from £1 million to £5 million, with more affordable units potentially starting at £500,000. However, these prices are subject to change as construction progresses and demand fluctuates.
For comparison, prime real estate in cities like London averages around £2,000 per square foot. Given The Line’s futuristic design and unique living experience, prices here are expected to reflect similar high-end value, especially as the city promises pollution-free environments and advanced amenities.
Read: Saudi Property Expo 2024
Legal Considerations for Foreign Buyers
Saudi Arabia allows foreign nationals to purchase property, but the regulations governing property ownership within The Line and NEOM are still being developed. NEOM operates under its own legal framework, designed to attract international investors, offering more flexibility compared to national laws.
While NEOM is expected to provide a more liberal lifestyle than the rest of Saudi Arabia, it is essential for foreign buyers to engage a lawyer familiar with both Saudi and NEOM’s specific property regulations. Currently, there is no residency or citizenship programme attached to property purchases, though this could evolve as the city develops.
Read: Saudi Property Investments
Financing and Payment Options
In Saudi Arabia, most property transactions are conducted in cash. However, given the scale and global appeal of The Line, it’s likely that banks will offer competitive mortgage options, including for international buyers. Nonetheless, financing in Saudi Arabia may come with stricter terms compared to Europe or the US.
International buyers may also consider financing options from their home countries, particularly from banks that provide loans for international real estate purchases. Since The Line is still under development, most buyers will be purchasing off-plan properties, which requires careful consideration of potential construction delays and design changes.
Read: Income Tax in Saudi Arabia for Foreigners
Tax and Fees
Saudi Arabia offers an appealing tax environment for foreign property buyers, with no personal income tax and minimal capital gains taxes. However, buyers will need to pay a 5% property registration fee, based on the purchase price, as well as any additional taxes specific to the NEOM region.
While ongoing property taxes in Saudi Arabia are minimal compared to global standards, it is advisable to consult a tax advisor to ensure clarity on any potential fees that may apply within NEOM’s special economic zone.
Read: Tax in Saudi Arabia for Foreigners 2024
Types of Properties Available in The Line
The Line’s vertical structure offers a range of modern apartment options, from studio units to larger family apartments, all equipped with smart home technology. Luxury penthouses with private terraces will cater to high-net-worth buyers, offering stunning views of the Red Sea and the surrounding desert landscape.
Though traditional homes won’t be part of The Line’s design, the city will provide shared green spaces, pools, and entertainment areas, ensuring a high standard of living for all residents. ( Become a Resident )
Read: Can Indian Buy Property in Saudi Arabia?
How to Buy Property in The Line: Step-by-Step Guide
- Research the Market: Work with a real estate agent familiar with NEOM and The Line to gain insight into available properties and market conditions.
- Legal Representation: Hire a lawyer who specialises in both Saudi property law and NEOM’s regulations to navigate the legal complexities.
- Secure Financing: Explore financing options, either through local Saudi banks or international institutions, to determine the best solution for your purchase.
- Reservation: Place a reservation on your chosen property by making a deposit, typically around 10-20% of the property price.
- Sales Agreement: Carefully review the sales contract and consult your lawyer to ensure all terms are clear and there are no hidden conditions.
- Completion and Handover: Once the property is completed, make the final payment and transfer ownership through the appropriate channels.
A Groundbreaking Investment Opportunity
Investing in The Line offers the chance to be part of one of the world’s most futuristic cities. With a strong financial backing, strategic location, and focus on sustainability and technology, The Line is more than just a conceptual project—it is the future of urban living.
For investors and homeowners alike, the opportunity to buy in The Line is not only about owning a property, but about embracing a lifestyle that prioritizes innovation, convenience, and environmental responsibility. Whether you’re seeking long-term investment returns or a unique living experience, The Line offers both.
