المدونات

About a decade ago, Saudi Arabia began facing serious pressure from an increasing gap between housing demand and supply. The population had grown four times over 40 years, creating a significant housing shortage across major cities. To tackle the crisis, the government established a dedicated Ministry of Housing. By 2020, the country needed approximately 4.6 million homes to meet growing residential demand. In response, the government allocated SAR 250 million to developers to construct 500,000 new housing units nationwide.

Lackluster development

The following years have seen a slew of housing, commercial and land developments undertaken by private developers to satisfy the real estate demands of the Gulf’s largest economy. An unwelcome consequence has been a production-sided mentality driven by traditional processes with little or no philosophy or master plan. Many building designs have been lacking creativity and have taken on a monotonous character.

 New blood

New developers and demand for modern projects are breathing fresh life into Saudi Arabia’s evolving real estate landscape. More industry players now recognize the drawbacks of outdated practices and aim for citizen-focused, globally competitive developments. This changing mindset is gradually transforming the Kingdom’s property sector with improved quality and long-term vision. Investor interest is rising as Saudi Arabia gains attention as a serious player in the regional property market. The Kingdom is increasingly viewed as fertile ground for innovation, investment, and real estate industry reform.

The concept of simply building for building’s sake in the Kingdom is fast becoming a thing of the past. Stakeholders are realizing that there needs to be more investment into creativity, customer satisfaction, and master planning. Based on ongoing industry trends, developments and practices we foresee a brighter future for Saudi property. Fresh opportunities.

paving the way forward

So what does the future hold for Saudi real estate? What roads need to be taken, who needs to forge new paths, and what opportunities are available? Among the new players needed are more finance companies that can foster competition that favors customers, and operation and facility management companies that offer new services beyond maintenance and cleaning.

In terms of industry focus, lease and rent contracts need to be clearer especially in sensitive areas such as annual increases in order to avoid market chaos. Developers must focus more on master-planned communities rather than continuing with isolated unit blocks. They should also prioritize the inclusion of retail and other amenities within these communities to ensure convenience and livability.

From an aesthetic point of view, developers should transition away from monotonous colors and themes and embrace livelier external designs. They should also elevate the status of landscaping and emphasize the role it plays in providing beauty and balance to surroundings and habitats. Lastly, pricing is always a major market mover and business magnet. Developers and owners should look more closely into building more affordably-priced units, especially as the Kingdom’s low- and middle-income population is rapidly expanding. Developers must put in extra effort to build housing that caters to all market segments and meets various homeowner needs.

Beyond building

The real role of real estate developers goes beyond simply building malls and villas. They have a responsibility to help improve the lives of community members and genuinely build for the future. With the local property industry undergoing a sea of fresh change, Saudi Arabia can look forward to developments that are socially and environmentally responsive and reflect a sector that truly cares for the lives it touches.