Interview: Abdullah Al Habib, CEO, Mohammed Al Habib Real Estate, on increased market sophistication driving a shift towards quality, sustainability and long-term performance
How is the increasing focus on master planning and placemaking reshaping development priorities across the residential and mixed-use market?
ABDULLAH AL HABIB: There is a clear shift in how buyers evaluate real estate projects. Demand remains strong, particularly in Riyadh, where population growth continues to drive activity. However, buyers are no longer focused solely on the individual unit. Increasingly, they are assessing the overall living environment. Master planning, urban design and quality of life have become key decision drivers. In many cases, a well-designed master plan is easier to market than high-quality individual units located within poorly planned urban settings.
This shift has reshaped development priorities across the market. Developers are now competing on the quality of an urban experience rather than speed or volume of delivery alone. Mixed-use concepts, lifestyle-driven amenities and long-term planning are gaining importance as residents seek destinations that will offer a complete and integrated living experience. As competition intensifies, only developments that meet these higher standards are likely to perform well over the medium to long term.
In what ways can large master-planned developments play a role in strengthening the broader development ecosystem?
AL HABIB: Large master-planned developments can serve as a framework that elevate standards across the sector. One key role they play is creating structured opportunities for smaller developers to participate within well-planned environments. Rather than operating independently on isolated plots, smaller developers can develop parcels within larger master plans that already benefit from robust infrastructure, clear design guidelines and consistent quality controls.
This approach improves overall construction quality and enhances urban coherence. It also allows smaller developers to benefit from economies of scale and shared services, while enabling them to focus on their core competencies. As the Saudi real estate market matures, this type of ecosystem becomes increasingly important. It facilitates knowledge transfer, encourages more disciplined planning practices and helps ensure that urban expansion is balanced and sustainable, rather than fragmented.
Which shifts in market sophistication are driving greater attention towards specialised real estate segments such as asset and facility management?
AL HABIB: The scale of development currently taking place across Saudi Arabia is driving a natural shift towards greater specialisation within the real estate sector. The development of large, master-planned communities does not end at construction or sales. These assets must be operated, maintained and managed efficiently over the long term, which is why asset management and facility management are becoming core components of successful developments.
The market is moving away from a model characterised by speculative, short-cycle development. Instead, investors and developers are increasingly focused on lifecycle value, operational efficiency and long-term asset performance. This shift reflects a maturing sector in which professionalism, specialisation and long-term thinking will define success, rather than short-term delivery alone.
To what extent are sustainability standards, smart infrastructure and regulatory reform reshaping long-term development strategies?
AL HABIB: These factors play a central role in how developments are planned and delivered. Sustainability and technology are increasingly influencing buyer behaviour, particularly among corporate tenants. At the same time, residential buyers are becoming more informed and are actively seeking efficient, well-managed and environmentally responsible buildings.
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