Major Projects One of the most significant factors shaping the urban and real estate landscape in Saudi cities, as their effects have been directly felt in neighboring residential neighborhoods through improved infrastructure, enhanced location appeal, and increased demand for real estate—though this has come with challenges related to rising prices and rents, as well as increased traffic congestion in some areas.
Abdulrahman Al-Faleej: The Rise in the Moral and Material Value of Neighboring Properties
Abdulrahman Al-Faleej, a real estate broker, affirmed that major projects have directly contributed to improving the quality of life in the surrounding residential neighborhoods, noting that they have become a major and influential factor in enhancing the status and distinctiveness of those neighborhoods.
He explained that neighborhood residents have benefited from real estate investors through the provision of higher-quality housing options in more attractive locations, while investors, in turn, have benefited from the increased demand for their projects, creating a symbiotic relationship that has yielded mutual benefits for all parties.
Al-Faleh noted that among the most notable positive impacts of major projects are easier access to services and facilities, the increase in the sentimental and material value of neighboring properties, and the encouragement of residents to engage in sports and recreational activities, especially near high-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 working proactively to address potential negative impacts, foremost among them traffic congestion, by developing road networks and accelerating the implementation of supporting infrastructure projects.
Regarding price increases in the real estate market, Al-Faleh emphasized that growing demand remains the main driver of prices, noting that the balancing measures taken by the relevant authorities have helped curb the irrational and artificial price hikes resulting from high demand driven more by certain real estate developers than by individuals.
He explained that major projects have had a clear positive impact on sales, purchases, and rentals in neighboring areas, as they have increased real estate demand by attracting thousands of workers across various fields and levels, which in turn boosted real estate activity within their immediate geographic vicinity.
He added that these projects have also succeeded in attracting high-quality and sustainable investments, as various economic activities are gravitating toward investment within their vicinity, citing the remarkable growth in economic and real estate activities witnessed in the areas surrounding the Riyadh train stations following the project’s launch.
Al-Faleh emphasized that the impact of major projects on the housing and rental markets has become evident through rising demand for housing and rentals in areas near these projects, coupled with limited supply relative to growing demand. Regarding who benefits most from these projects, he explained that the benefits extend to all parties—whether real estate developers, investors, or residents—which positively contributes to the real estate sector’s prosperity and enhances its investment appeal.
He concluded his remarks by emphasizing that major projects aim to serve the entire city, not just the neighboring residential neighborhoods, noting that both residents and visitors reap their benefits, while challenges related to parking or traffic remain limited and are effectively managed, ensuring the continued positive impact of these projects on urban development and quality of life.
Ahmed Al-Duayan: Current prices reflect true value and future prospects
Ahmed bin Abdulaziz Al-Duayan, a real estate consultant, affirmed 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 the benefits varies from one neighborhood to another depending on the nature of the project and its geographic location.
Al-Duayan explained that real estate investors have benefited the most from these projects during the current phase, while residents have benefited from improved services and enhanced neighborhood quality—though to a lesser extent compared to the returns achieved by investors and real estate developers.
He noted that among the most notable positive impacts of major projects are rising real estate values, improved infrastructure, and an expanded range of services available to residents, as well as the revitalization of the real estate market in neighborhoods adjacent to the projects, where these areas have seen a notable increase in sales, purchases, and rentals as a result of rising demand.
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.
On the other hand, Al-Duayan pointed out that there are some challenges associated with these projects, most notably rising real estate prices and rents, as well as 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 households.
Regarding price increases in the real estate market, he explained that current prices reflect a combination of intrinsic value and future expectations, noting that part of these increases is not entirely based on current market conditions but rather on expectations tied to the future of the areas surrounding major projects.
Al-Duayan emphasized that the primary goal of major projects should be to serve residential neighborhoods and their residents and to enhance the quality of life there, However, reality shows that in some cases, residents bear part of the cost of these projects’ success through rising housing and living costs in the areas benefiting from the development.
