Why the trend towards real estate outside of major cities?

Architect Dr. Hisham Al-Qasem

In recent years, the real estate market has been quietly but steadily changing, with eyes beginning to turn outside the major cities where Riyadh, Jeddah and Dammam have dominated the Kingdom's real estate scene for decades. What is driving investors and buyers to look beyond the urban horizon? Let's dive into the reasons beyond the traditional explanations.

1. New development plans redistribute urban weight

<The Kingdom has been implementing for years a strategy aimed at relieving pressure on major cities through mega projects such as «The Line» and «NEOM», as well as the development of governorates and administrative centers in different regions. Thus, «centralization» is no longer a condition for real estate viability.

2. Better investment returns at lower costs

In major cities, land prices have risen so high that the rental yield in some neighborhoods barely covers the cost, while the surrounding areas offer investment opportunities at relatively low purchase prices with a growing demand from residents looking for affordable housing, this balance between supply and demand favors both sides.

3. The allure of quiet life and larger spaces

<After the pandemic experience, many people's perception of housing has changed. Proximity to the heart of the city is no longer an absolute advantage. People are beginning to appreciate the importance of tranquility, air quality, and spaciousness, which is provided by modern suburbs and rural areas, which have begun to witness an organized urban development that rivals the city itself.

After the pandemic experience, the perception of housing has changed.

4. Infrastructure and transportation improvements

Government investments in highways, trains, and intelligent transportation networks have reduced time gaps between major cities and surrounding areas. Some new residential centers are being run as smart cities, making commuting to and from them smoother and enticing residents to get away from the crowds without sacrificing convenience.

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5. New behavioral trends in the younger generation

<Millennials and Gen Z don't see living in the center of the city as a "dream", they are looking for a balanced lifestyle, work-from-home spaces, urban farming, and even sustainability. These trends are redefining the demand for real estate and driving the creation of integrated off-center communities.

<The trend towards real estate outside major cities is no longer a forced choice, but a strategic trend with economic, social, and even psychological justifications. The market that understands this change early will be the winner in the new real estate race.

@ArchHesham