On developments in sustainability and efforts to boost home ownership
In what ways is the current regulatory environment impacting the growth of sustainable real estate development?
ABDULLAH AL HABIB: Saudi Arabia has made significant strides in promoting sustainable real estate development, driven by a regulatory environment that is increasingly focused on sustainability and mitigating environmental impact. The government’s commitment to Vision 2030 has led to the implementation of regulations that encourage green building practices, energy efficiency and the use of renewable energy in new developments. Initiatives such as the Saudi Green Building Forum and the introduction of energy efficiency labels for buildings are examples of how the regulatory framework is fostering a more sustainable real estate sector.
There is still room for improvement, particularly in streamlining the approval processes for sustainable projects and providing more incentives for developers to adopt eco-friendly practices. The regulatory environment will continue to evolve to support the rapid pace of innovation in sustainable technologies and to ensure that all stakeholders – from developers to end-users – are incentivised to prioritise sustainability in real estate projects. As awareness of the benefits of environmentally sustainable building grows, buyers will increasingly incorporate sustainability into their purchasing decisions.
How can real estate developers contribute to the goal of increasing homeownership rates among Saudi citizens?
AL HABIB: Real estate developers in Saudi Arabia play a crucial role in supporting the goal of increasing homeownership rates. One of the most effective ways to contribute is by developing affordable housing solutions that meet the needs of the average Saudi family. There is significant demand for housing in Riyadh as well as in other urban centres across the Kingdom. Meeting this demand and the targets outlined by national strategies requires not only lowering the cost of construction through efficient building practices and economies of scale, but also innovation in the design and financing of homes to make them more accessible to a broader segment of the population.
Developers can partner with government programmes to help bridge the gap between demand and supply. Additionally, by focusing on quality and liveability, developers can create long-term value for homeowners, which in turn supports the stability and growth of the real estate market.
To what extent are technology and smart-city concepts influencing the development of residential communities?
AL HABIB: The integration of technology and smart-city concepts is fundamentally transforming the way residential communities are developed in Saudi Arabia. We are seeing a shift towards more connected and efficient urban environments, where technology is leveraged to improve the quality of life for residents. Smart homes with automated systems and advanced energy management systems are becoming increasingly common. This enhances convenience and security for residents, and also contributes to sustainability goals by optimising resource use.
Moreover, as Saudi Arabia continues to urbanise, smart-city technologies are essential in managing urban growth. They enable real-time data collection and analysis, which helps in traffic management, waste reduction and energy efficiency, thereby creating more liveable and resilient cities. This trend is likely to accelerate as the Kingdom pushes forward with its Vision 2030 agenda, which places a strong emphasis on innovation and sustainability in urban planning.
Where do you identify opportunities for mixed-use projects to cater to the evolving lifestyle needs of a growing urban population?
AL HABIB: Mixed-use projects in Saudi Arabia are increasingly being designed with a deep understanding of the evolving lifestyle needs of the urban population. Many younger citizens have spent time abroad and their lifestyle requirements have evolved, to a certain extent, away from a traditional way of living. Today’s urban dwellers are looking for convenience, community and access to a variety of amenities within close proximity. Mixed-use developments that combine residential, commercial and recreational spaces in one location are perfectly suited to meet these needs.
We see a strong trend towards creating walkable neighbourhoods where residents can easily access shops, cafes, fitness centres and green spaces without needing to commute. These projects are also incorporating more flexible living spaces that accommodate both work and leisure, reflecting the growing trend of remote work and the desire for a better work-life balance. Furthermore, the cultural shift towards community-centric living is being reflected in designs, with developers prioritising spaces that encourage social interaction and communal activities. In summary, mixed-use projects are addressing the functional needs of urban living and also enhancing the quality of life for residents by creating vibrant, integrated communities.
