Industry leaders at the Jeddah summit highlight a transformative shift towards mixed-use, community-focused developments as demographics and regulation reshape the market.
JEDDAH: Saudi Arabia’s real estate sector is undergoing a profound transformation, driven by the catalytic force of government megaprojects, strategic policy reforms, and the evolving demands of its young population, according to experts at the 19th Real Estate Development Summit.
The event, which brought together top industry executives, highlighted a market in the midst of rapid growth, pivoting towards sustainability, technology, and human-centric design in line with the broader goals of Saudi Vision 2030.
Demographics as a Driving Force
A key theme was the powerful influence of the Kingdom’s demographic profile. Essam Ahmad Kalthoum, CEO of Asmou Development Co., pointed to a 2.3 percent annual birth rate and a population where over 35 percent are young.
“They don’t mind compact units, but they look for amenities and services and lifestyle in the neighborhood,” Kalthoum told Arab News, explaining that this shift is creating massive opportunities for developers who can deliver integrated living experiences.
He identified strong demand across hospitality, logistics, and infrastructure, with Riyadh’s momentum being government-led and cities like Jeddah, Makkah, and Madinah remaining key markets due to their strategic and cultural significance.
Financial Reforms: A “Game Changer”
Kalthoum also highlighted critical financial sector reforms as a major catalyst. He described clearer funding frameworks and investment structures as a “game changer” that is turning the ambitious plans of Vision 2030 into tangible reality for developers.
The New Blueprint: Walkable, Mixed-Use Communities
The summit also focused on the future shape of Saudi cities. Ron Bakker, co-founder of PLP Architecture, championed the value of mixed-use, walkable urban developments that foster community and reduce reliance on long commutes.
Citing examples from Tokyo and London, Bakker emphasized creating destinations that blend residential, office, and leisure spaces, a model increasingly relevant for fast-growing urban centers like Riyadh.
From Standard to Sophisticated Luxury
The evolution of design standards in the Kingdom was another focal point. Lamees Al-Ghamdi, business development manager at ARAC, noted that the market’s definition of luxury has matured with exposure to global players.
However, she stressed the importance of a distinct Saudi identity in this new era of luxury. “We ensure each project reflects local heritage and community through a distinct Saudi touch,” Al-Ghamdi said, citing Diriyah as a prime example where heritage has become synonymous with sophistication.
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