Investment Property in Khobar

Investment Real Estate in Khobar

Investment Property in Khobar
Investment Property in Khobar

Khobar property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Khobar.

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Search Map of Khobar Investment Real Estate

Khobar (Arabic: ٱلْخُبَر‎, romanized: al-Khobar) is a city and governorate in the Eastern Province of the Kingdom of Saudi Arabia, situated on the coast of the Arabian Gulf. It ranks 19th by population overall in the kingdom, behind Yanbu’ and ahead of Arar, with an estimated population of 165,799 as of 2020. Khobar is part of the ‘Triplet Cities’ area, or Dammam metropolitan area along with Dammam and Dhahran, forming the residential core of the region.

The city was founded alongside Dammam by the Dawasir who moved there in 1923 fearing British persecution with the permission of King Abdulaziz Al Saud. Khobar experienced rapid growth during and after the discovery of oil in Saudi Arabia as it served as the port for the oil exports of Saudi Aramco in the company’s early days. Traditionally, Khobar has also been a city of shopkeepers and merchants, and today has several shopping malls in and around it.

The city is the newest in the Dammam metropolitan area, facing the Persian Gulf with its 16-km long Corniche Road, which runs parallel to the city’s eastern coast. Khobar is also considered a resort town as its southern suburbs of the city face the Half Moon Bay and host several beaches and beach resorts. By night, the quiet city turns into a bustling one, with some of the largest malls in the kingdom, such as the Mall of Dhahran and the al-Rashid Mall. The city is also home to the historic Suwaiket Street, officially known as the Prince Bandar ibn Abdulaziz Street, which is home to some of the oldest markets in the city.

The Khobar governorate is further divided into several municipalities, with Khobar as their capital. ‘Issam ibn Abdullatif al-Mulla has been serving as the mayor of the governorate from the Islamic year 1428 AH.

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The financial stability of Khobar has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Khobar

Renting out your Khobar buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Khobarare – preparation is key.

  • Set goals based on how much rental yield will be required and the local rental yield rates in Khobar and be prepared to change your initial outlook.
  • Thoroughly research the Khobar location with a special emphasis on fringe areas outside the main Khobar metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Khobar.
  • Ensure that your target investment property in Khobar appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
  • You may think that managing your Khobar properties yourself is an easy option, but are these savings justifiable when you run into Khobar red tape? Physis Realty Khobar office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Khobar buy-to-rent sector.

With our expert guidance, investing in Khobar provides the secure knowledge that your money is working harder than it would in a local Khobar bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Khobar, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Khobar property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Khobar

Flipping property in Khobar

Flipping property is when we advise clients to buy a Khobar property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Khobar market has a time to react to the renovation.

The Flipping Strategy in Khobar

Investment property flipping in Khobar is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Khobar real estate investments are sometimes referred to by professionals as ‘distressed’ Khobar real estate.

What is distressed Khobar property:

  • Khobar property in need of renovation
  • Khobar real estate with a change of puropose and use
  • Oversold Khobar property
  • Bank repossessions in Khobar

Put simply, long term investors in Khobar purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Khobar investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Khobar property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Khobar use a minimum profit value of 22% when looking at potential Khobar projects. The reason for this is because there are lots that can go wrong in Khobar property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Khobar

For luxury property investors hoping to add a superb property in {AsainCity} to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Khobar, Physis Realty caters particularly to high net-worth individuals and families in Asia. A luxury real estate investment in Khobar should be entrusted to only the highest-quality agency.

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