Posted on: Monday 22 October, 2012 2:00
|Urban development projects in Northern Riyadh to accommodate 700,000 people by 2030
Real estate investments in Northern Riyadh are expected to grow stronger in line with the increasing focus across the region on residential and urban development, according to a recent report released by Injaz Development Co. The promising investment outlook coincides with the newly enacted Saudi Real Estate Mortgage Law, which has been introduced to provide funding for urban development projects across Saudi Arabia and ultimately boost the Saudi economy.
The report has emphasized the importance of the Real Estate Mortgage Law in sustaining the long-term urban development initiatives being undertaken in Northern Riyadh and across the country, particularly in light of higher growth rates being observed in the real estate industry. Industry analysts have further pointed out that the real estate mortgage system will serve as a pillar for strategic public private partnerships (PPP) in the country. PPP has been recognized as a driving force behind the growing number of residential and urban development projects across the country, which are vital to address the burgeoning demand for residential property, particularly with respect to the Kingdom’s fast-growing population of which 60 per cent are youth.
The report further pointed out that real estate development activities have achieved positive growth overall across the country, with Northern Riyadh’s real estate sector growing by 43.42 per cent, based on Jones Lang LaSalle’s Riyadh Real Estate Market Performance Index Q2 2012, triggering radical changes in its urban and real estate landscape. The High Commission for the Development of Arriyadh (HCDA), on the other hand, has announced major developments in Northern Riyadh following the completion of several key infrastructure projects, including road networks, residential facilities and hospitality developments. Some of the latest projects that have been undertaken in Northern Riyadh include the Prince Sultan Bin Abdulaziz Humanitarian City and the 3.2 square kilometer Prince Salman Park in Banban.
As part of its commitment to promote Northern Riyadh as one of the most attractive investment destinations worldwide, Injaz Development Co. has been actively involved in projects that complement ongoing efforts to achieve a well-balanced, sustainable urban development. The Riyadh-based master developer and property investment firm has launched a number of projects that support the urban development strategy being implemented in Northern Riyadh. The urban development projects in the region ultimately aim to accommodate the needs of its rapidly growing population, which is expected to reach over 700,000 by 2030. Moreover, it will create more job opportunities for residents and generate greater economic contributions from the private sector.
Taking advantage of the favorable market conditions in Northern Riyadh, Injaz has revealed plans to launch new projects in the region, including Al Gamra 10, one of the four blocks in Al Gamra Project – a 2.5 million sqm project with a strategic location in Northern Riyadh. With 403 land plots spread over a total area of 566,000 sqm, Al Gamra 10 is an integrated project offering ready-made residential, commercial and investment building blocks that are specifically designed to meet the needs of residents and businesses. The project will include infrastructure for electricity, water, lighting and road networks, making it an ideal residential destination in the region.
Omar Al-Kadi, CEO and Managing Director, Injaz Development Co., said: “The real estate boom in Saudi Arabia is mainly driven by the newly introduced Real Estate Mortgage system, which is part of a five-point system to generate real estate funding in the country. The favorable market outlook as well as several other influential factors will stimulate urban development in Northern Riyadh, particularly in the development of high-quality residential properties of varying sizes. Moreover, we can also expect the rapid development of other key amenities, including service centers, integrated services, modern road networks and interactive public transportation systems.”
“We expect a continued flow of investments for urban development across Northern Riyadh in the foreseeable future to meet the demands of the region’s growing population. The development of a central road network within Northern Riyadh, along with a number of other vital projects, including the King Abdullah Financial District and the Princess Nora Bint Abdul Rahman University, will help reinforce the reputation of Riyadh as a first-class investment destination. In this regard, the Al Gamra 10 project is being undertaken to complement the government’s urban development plans, as it will serve as a tool to generate more investments in Northern Riyadh,” concluded Al-Kadi.