Why is real estate outside of major cities trending?
Architect Dr. Hisham Alqasem
In recent years, the face of the real estate market has been quietly but steadily changing, with eyes looking beyond the major cities of Riyadh, Jeddah, and Dammam, which have dominated the Kingdom's real estate landscape 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
For years, the Kingdom has been implementing a strategy aimed at relieving pressure on major cities through mega projects such as «The Line» and «NEOM», as well as developing governorates and administrative centers in different regions, and these projects are not just urban development, but new economic and population attractions. 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 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 experience of the pandemic, 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 value the importance of quiet, 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.
4. Infrastructure and transportation improvements
Government investments in highways, trains, and smart transportation networks have reduced time gaps between major cities and surrounding areas. Some new residential centers are being run in a smart-city style, making commuting to and from them smoother and enticing residents to get away from the crowds without sacrificing convenience.
5. New behavioral trends in the younger generation
Millennials and Gen Z don't see city center living 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 communities outside the center.
The trend towards real estate outside major cities is no longer a forced choice, but a strategic one with economic, social, and even psychological justifications. The market that understands this change early on will be the winners in the new real estate race.
@ArchHesham
