SUSTAINABLE DEVELOPMENT AND GREEN BUILDINGS
By 2030, 2.2 million residents will call PIF-backed ROSHN communities their home. The developer's industry-leading sustainability agenda involves lowering automotive dependency, energy efficiency, and planting one million trees across its projects.
Sustainability efforts are also shining through within KSA's office sector. There is growing emphasis on ESG solutions as international companies flock to the Kingdom following its Programme HQ, and both international and local players seek Grade A buildings across key urban centres.
The King Abdullah Financial District in Riyadh houses multinational corporations leading the way in sustainable office space development as they support KSA's aim to achieve carbon neutrality by 2060 and derive 50% of its energy needs from renewable sources by 2030.
As part of Saudi Arabia's commitment to sustainable development, businesses within the country are proactively striving to build a more environmentally friendly portfolio. This strategic shift towards sustainability not only resonates with the government's agenda but also aligns with the prevailing global trend, emphasising the increasing significance of environmentally conscious practices within Saudi Arabia’s business community.
Saudi Arabia has introduced a range of measures to promote the integration of sustainable practices within the real estate industry. These initiatives, designed to incentivise developers and investors, encompass a variety of benefits, including tax incentives, discounted utility rates, and financial grants. By offering these incentives, the government aims to encourage the widespread adoption of sustainability in real estate development and contribute to a more resilient real estate sector.
THE RISE OF PROPTECH
Proptech is the next big thing in Saudi Arabia. With the spurt in real estate development, it is only natural for the sector to transition into proptech to enhance efficiency, transparency, and sustainability to maximise business results. Realiste, a Dubai-based prop-tech company is one of the first to strike a joint venture with Saudi business leaders to bring its AI-powered platform to the property investment sector in the Kingdom.
Proptech in property management, investments, and transactions
In Saudi Arabia, proptech is still in its nascent stages but holds immense potential. It has the power to revolutionise property management by improving efficiency and can enhance property investments and transactions in the Kingdom by providing real-time and comprehensive real estate data and analytics to investors, facilitating informed decision-making and mitigating risks. Here’s why we believe proptech will see steady growth in KSA;
1) Limited digitalisation and transparency in Saudi Arabia's real estate market hinder the efficiency of transactions, but proptech can revolutionise the process by leveraging vast data analysis capabilities, providing accurate forecasts, and reducing the time required for deal completion.
2) Enhancing transparency levels in the Saudi Arabian real estate market, as well as the wider region, is crucial to attracting increased investor interest, and proptech solutions can play a pivotal role in achieving this objective.
3) With strong government support for digitalisation initiatives, Saudi Arabia is poised to lead the digital transformation of the real estate sector in the region, fostering innovation and efficiency through the adoption of proptech solutions.
4) The ongoing construction boom in Saudi Arabia presents an opportunity for the integration of technology-driven real estate systems, particularly in attracting foreign investments, as the market scales up and demands more sophisticated and efficient solutions.
CONCLUSION
Saudi Arabia's pursuit of sustainable real estate development is evident through its ambitious Giga projects and its carbon neutrality goals for 2060. As Saudi Arabia continues to lead the digital transformation of the real estate sector in the region, the Future of Living Summit at Cityscape Global’s flagship KSA event serves as a platform to explore and discuss these advancements, paving the way for a sustainable and tech-driven future in Saudi Arabia's real estate industry.
