Issam Bukhamseen: Historical and Cultural Depth—A Promising Foundation for Investment
Real estate investment is one of the most important drivers of urban development and is fundamentally aimed at enhancing quality of life and improving the urban landscape—architecturally, socially, and culturally. Therefore, it is a fundamental pillar in the reconstruction and development of old neighborhoods, within the framework of economic development and its close connection to community and national identity, as it opens up multiple avenues for community development.
Preserving Cultural Heritage
The importance of investing in historic neighborhoods lies in ensuring the preservation of cultural and heritage assets to meet the basic needs of residents in these areas, rebuilding economic outlets that provide job opportunities suited to the social fabric, and redeveloping neighborhoods, to also provide housing units that improve the quality of life within cities and not just on their outskirts, The development of historic neighborhoods will help attract investors after they are redeveloped according to an integrated urban planning approach by improving the urban environment, infrastructure, and the quality of public spaces, as well as providing essential service facilities.
Creating New Horizons for Supply and Demand
Renovation and construction projects in old neighborhoods across various sectors—whether residential or commercial—will help create new opportunities for supply and demand and enhance asset value relative to the return on investment. These areas are characterized by their central location within the urban landscape and their proximity to key centers and vital facilities , including government complexes, hospitals, and schools, which ensure continuous demand for such properties due to their strategic location in the heart of cities.
Increase in Market Value of Real Estate
On the other hand, if we consider the historical and cultural depth of historic neighborhoods, they constitute a promising foundation and an attraction that boosts tourism revenues and the local economy, Cultural heritage sites, embodied in revitalized historic neighborhoods, can increase market real estate values and local spending, which supports the funding of public services in these communities; This is in addition to their fundamental role in promoting and creating job opportunities and boosting commercial activities of all kinds, which serve as a key driver that sustainably enhances the value of investments in these areas.
Vision 2030: The Most Important Catalyst
The Kingdom’s policy, as embodied in the vision of His Majesty the Custodian of the Two Holy Mosques and His Royal Highness the Crown Prince for sustainable development in accordance with the Kingdom’s Vision 2030, is one of the most important drivers that plays a fundamental role in restoring balance to urban development through the construction of vibrant communities with life. Saudi cities have received significant attention from the Kingdom’s wise leadership, creating an environment conducive to strategic transformation in line with the objectives of the “Quality of Life 2020” program, However, urban planning in the Kingdom faces numerous challenges, such as striking a balance in planning and implementation between preserving heritage and achieving the highest international quality standards.
For historic neighborhoods to keep pace with modern city life, attention must be paid to their unique characteristics and transforming them into promising investment opportunities—such as entertainment, shopping, and cultural tourism—in historic districts, which are distinguished by their rich history and represent some of the most promising areas for such neighborhoods.
*CEO of Anovest Real Estate
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Adel Shalabi: Old neighborhoods have attractive infrastructure
Investing in underprivileged neighborhoods helps offset some of the losses investors have incurred in recent times, and development will provide housing units that will help balance rental prices in cities, given that these neighborhoods cater to a large segment of the population—namely, company employees and workers.
The shift toward historic neighborhoods is driven by the opportunities investors seek in well-serviced locations, with a clear difference in real estate prices between modern and old neighborhoods of approximately 30%. Investors are typically wary of circumstances surrounding investment projects that could lead to instability and higher interest rates on projects; they are also motivated by clear and realistic economic policies that streamline procedures and provide the necessary infrastructure for operations.
Therefore, the trend toward older neighborhoods represents an excellent investment opportunity due to the existing infrastructure for water and electricity, as well as their proximity to government and service centers and commercial markets—not to mention the high rate of investment in the city center.
*Sales Manager at Kayan Al-Masiya Real Estate Company
