Recent data on global property ownership affordability reveals a significant disparity between countries, with the Sultanate of Oman and Saudi Arabia topping the list of the cheapest. Individuals in both countries need approximately 3.1 years of their annual income to buy a property. In contrast, the ratio is 3.3 years in the United States and rises to 5.2 years in Qatar. Among the most expensive countries, Syria leads globally with 115 years of income needed to own a home, followed by Cuba (48 years), Ethiopia (47.1 years), and Cameroon (46.6 years).

Reasons for Low Property Costs in the Gulf

Real estate expert Safi Nassar told “An-Nahar”: “These results reflect a set of economic factors; Oman and Saudi Arabia have relatively strong and stable economies. Oman relies on oil, gas, and trade, with a limited population and a strong currency (the Omani Rial equals about 2.7 to 2.8 dollars), which maintains supply-demand balance and limits inflation in the real estate market. Saudi Arabia is undergoing broad economic openness under Vision 2030, which boosts foreign investment and gradually increases demand, potentially leading to a future decline in purchasing power compared to the current level.”

Impact of Economic Policies and Investment Openness

Nassar points out that opening property ownership to foreigners in Saudi Arabia will directly affect prices, as demand and foreign investment are expected to rise, potentially increasing property prices in the medium to long term.

In Oman, Nassar believes that the absence of large economic expansion plans similar to Saudi Arabia or the UAE makes the real estate market more stable and less prone to price fluctuations, noting that demand grows “organically” internally away from external speculation.

Real Estate Market’s Impact on the Economy

Conversely, some countries like the UAE—especially Dubai—heavily rely on the real estate and tourism markets as economic pillars, making prices more susceptible to fluctuations due to external demand. Nassar adds: “Rising property prices lead to increased living and rental costs, both residential and commercial, which directly reflects on inflation and affects the economy as a whole, from basic goods prices to education and healthcare.”

In conclusion, the data reflects that property ownership affordability is closely linked to economic policies, openness to foreign investments, and the local currency’s value. While Oman and Saudi Arabia currently benefit from relatively low property prices, upcoming economic changes, especially in Saudi Arabia, may reshape the real estate landscape in the coming years.