The launch of the Saudi Green Initiative in 2021 came in line with the Kingdom's orientation towards environmental sustainability, reducing carbon emissions, afforestation and land reclamation, and protecting biodiversity, and this initiative is not limited to the environmental aspect only, but has an impact on the real estate market, which has turned to green standards in design, construction and financing.

The impact of the Saudi Green Initiative on the real estate market

The Saudi Green Initiative contributes to the development of building standards within the Kingdom, by relying on modern technologies, such as the use of environmentally friendly building materials, renewable energy systems, and smart home systems that rationalize electricity consumption, the number of green building projects registered within the Kingdom is about 2000 projects.

Real estate overlooking or adjacent to green spaces or gardens has witnessed a higher demand from citizens, which raises the market value or rental price of the unit. Green buildings are more attractive to tenants and those wishing to buy, as these buildings are designed according to sustainability standards and use better insulation techniques and renewable energy sources, which reduces operating and maintenance costs in the long term.

Investors have also become more interested in green building projects, such as the use of environmentally friendly building materials, renewable energy systems, and smart home systems.

Investors also prefer projects with green building certificates, because they provide better returns, sustainable investments, and less environmental risks, as well as the government encourages such projects by providing incentives and facilities for them, and it is expected that the revenues of the green building market in the Kingdom will increase to 33 billion dollars in 2030, and Riyadh is considered one of the leading Saudi cities in green real estate.

Riyadh is one of the leading Saudi cities in green real estate.