Major projects are among the most prominent variables shaping the urban and real estate landscape in Saudi cities, as their effects have been directly reflected on neighboring residential areas through improving infrastructure, increasing the attractiveness of locations, and increasing real estate demand, in contrast to challenges related to rising prices and rents and increasing traffic density in some areas.
Abdulrahman Al-Faleej: The increase in the moral and material value of neighboring properties
Abdulrahman Al-Faleej, a real estate broker, confirmed that major projects have directly contributed to raising the quality of life within the surrounding residential neighborhoods, noting that they have become a major attraction and influential factor in enhancing the status and distinction of those neighborhoods.
He explained that the residents of the neighborhoods benefited from real estate investors through the provision of higher quality housing products in more attractive locations, while the investors in turn benefited from the increased demand for their projects, creating a complementary relationship that achieved common benefits for all parties.
Al-Faleej pointed out that among the most prominent positive effects of major projects are the ease of access to services and facilities, the increase in the moral and material value of neighboring properties, in addition to encouraging residents to practice sports and recreational activities, especially near quality projects such as King Salman Park and King Abdulaziz Park.
Regarding the challenges associated with these projects, he explained that the relevant authorities are proactively working to address the potential negative impacts, primarily traffic congestion, by developing road networks and accelerating the implementation of supporting infrastructure projects.
Regarding the price increases in the real estate market, Al-Faleej stressed that the increasing demand remains the main driver of prices, noting that the balancing decisions taken by the competent authorities contributed to limiting the illogical and artificial increases that resulted from the high demand from some real estate developers more than from individuals.
He explained that the major projects had a clear positive impact on buying, selling and renting in the neighboring areas, as they led to an increase in real estate demand as a result of attracting thousands of workers of various specialties and levels, which strengthened real estate activity in their immediate geographical scope.
He added that these projects have also succeeded in attracting quality and sustainable investments, as various economic activities are moving to invest within their vicinity, citing the remarkable growth in economic and real estate activities witnessed in the areas surrounding the Riyadh train stations after the start of the project’s operation.
Al-Faleej emphasized that the impact of major projects on the housing and rental market is evident in the increased demand for housing and rentals in nearby areas, coupled with limited supply compared to the growing demand. Regarding who benefits most from these projects, he explained that the benefits extend to all parties—the real estate developer, the investor, and the resident—which positively impacts the growth of the real estate sector and enhances its investment appeal.
He concluded by emphasizing that major projects aim to serve the entire city, not just the adjacent residential neighborhoods, noting that both residents and visitors reap the benefits, while challenges related to parking or traffic remain limited and are dealt with effectively, ensuring the continued positive impact of these projects on urban development and quality of life.
Ahmed Al-Dhaian: Current prices reflect true value and future expectations
Ahmed bin Abdulaziz Al-Dhaian, a real estate consultant, confirmed that major projects have contributed to enhancing the quality of life within cities through the development of infrastructure, services and public facilities, noting that the extent of benefit varies from one neighborhood to another depending on the nature of the project and its geographical location.
Al-Dhaian explained that real estate investors were the biggest beneficiaries of these projects during the current phase, while residents benefited from improved services and increased efficiency in neighborhoods, but to a lesser extent compared to the returns achieved by investors and real estate developers.
He pointed out that among the most prominent positive effects of major projects are the increase in the value of real estate, the improvement of infrastructure, and the expansion of the range of services available to residents, in addition to stimulating real estate activity in the neighborhoods adjacent to the projects, as those areas witnessed a remarkable increase in the rates of buying, selling and renting as a result of increased demand for them.
He added that major projects have also succeeded in attracting new and diverse investments to the real estate market, reflecting the sector's vitality and enhancing its long-term investment appeal.
In contrast, Al-Dhaian pointed out some challenges associated with these projects, most notably the high prices of real estate and rents, along with increased congestion and pressure on some of the neighborhoods targeted for development. He emphasized that rising rents have become an increasing burden on a segment of families.
Regarding the price increases in the real estate market, he explained that current prices reflect a mix of real value and future expectations, noting that part of these increases is not based entirely on the current market reality but rather on expectations related to the future of the areas surrounding major projects.
Al-Dhaian stressed that the main objective of major projects should be to serve residential neighborhoods and their residents and enhance the quality of life in them. However, reality shows in some cases that residents bear part of the cost of the success of these projects through the high costs of housing and living in the areas benefiting from the development.
