Renad Ghanem

Saudi Gazette

 

JEDDAH — In the midst of an unprecedented real estate and construction boom that is changing the Kingdom’s landscape, Cityscape Jeddah 2014 opened its doors on Sunday to a stream of investors, developers and real estate professionals who are keen  on making the current development in the industry sustainable, socially beneficial and profitable.



One of the prominent highlights at the exhibition was the unveiling of the Prince Sultan Cultural Center, a major mixed-use development near Jeddah’s new King Abdullah Sports City and King Abdulaziz International Airport.



With plans for a medical city, a major cultural center, schools, high-end hotels, and villas and apartments that will eventually house some 15,000 people, the new development will be a self-contained community that will extend the city limits of Jeddah even farther north.



Ahmed Al-Sanousi, CEO of Prince Sultan Cultural Center, said: “We want to create a new benchmark in Jeddah, something that generations after us can replicate (and) the Prince Sultan Cultural Center masterplan is addressing our vision of creating a wellness community, a community that can live, learn, work, and enjoy, all this at the new heart of Jeddah.”



For those looking for an in-depth analysis of the Jeddah housing market, the Real Estate Summit offered insightful workshops led by members of the local real estate industry. Zuhair Hamza, Executive Manager of Tamlik, addressed the questions on  government support for the real estate and construction industry, especially in terms of low-cost housing for middle-income families, development of Red Sea destinations for local and foreign tourists, new construction techniques and an assessment of the contribution of built assets to the national GDP.



One of the better attended workshops centered on issues regarding the need for middle-income housing. Ziad Al-Bassam, CEO, Al Basssam Group, joined Gagan Suri of NCB Capital, Abdulaziz Al-Abdullah, CEO of Nowayrah Real Estate Development and Neil Tobin, COO, Sedco Real Estate Development to discuss the economics of closing the gap between the demand and supply of less expensive housing. The general conclusion of the panelists and of attendees was that there is a need for the government and the private sector to team up in order to resolve the issue. All panelists agreed that constructing housing priced for low- to middle-income buyers is an extremely difficult undertaking for private companies that, by definition, are seeking profit.



Gagan Suri revealed at Cityscape that NCB Capital recently joined forces with Sedco Development to launch a new residential real estate fund which was successfully closed after raising SR350 million from investors.



“This reflects investors confidence in the successful collaboration between two of the leading investment and real estate companies in the kingdom and sets a new trend in the market,” he said.



As guests discussed details and concepts at the Summit, companies on the exhibition floor eagerly presented their newest projects and services to visitors.



 Dar Al-Tamleek, the first company in Saudi Arabia to be granted a real estate finance license, was drawing visitors to its exhibit because, as a company representative explained, people are more attracted to real estate finance companies than banks.



The reason is that real estate finance companies do not ask for many requirements, like salary transfer, thus easing the individuals burden to own homes or other real estate properties.



In addition, Dar Al Tamleek offers various finance programs and schemes that cater to different types of customers, especially low and middle income individuals from different sectors — retired, private, public and military employees, among others.



Also establishing a major presence at this year’s event is Makkiyoon Urban Developers, which is currently constructing the Al Tilal (Bait Makkah 40) project on AlHajj Street in Makkah. The project consists of four towers, comprising of more than 850 four-star furnished apartments.



“From our participation in Cityscape, we aim to highlight our company’s position as a leading real estate developer,” said Medhat Sayed, Makkiyoon sales manager.



Cityscape Jeddah is not limited to Saudi companies and the presence of GCC developers attests to the increasing influence of the Saudi economy on development around the region.



For example, Deyaar, an Emirati developer, is showcasing two new residential and mixed-use projects that are currently under development.



One is the The Atria, which comprises two towers that were conceptualized by UK-based design company, ‘yoo Studio’. It will feature studios, one, two and three-bedroom apartments as well as three-bedroom duplexes across 30 floors.



Deyaar’s other project on display is Central Park at DIFC, a tower consisting of 426 luxury apartments with many green features designed to save electricty and water and conforms to guidelines that endorse sustainable standards.



Supporting the vision for growth in the real estate industry, Cityscape Jeddah 2014 is sponsored by Sumou Real Estate (principal sponsor) and Ewaan Global Residential Company (founding Sponsor).



Cityscape Jeddah 2014 is  under the patronage of Prince Mishaal Bin Majed, Emir of Jeddah.  



Lifestyle Developers, a Saudi-based real estate company, showcases its current project Al-Nahda at Cityscape Jeddah 2014 as it seeks to raise people's lifestyle by delivering quality residential and commercial projects.



Aside from Al Nahda, which is 68 percent sold out, the developer is set to launch a sales drive for its high-profile project "Diyar Al Salam" at the event.



Billed as the region’s definitive real estate exhibition, Cityscape Jeddah 2014 opened on Sunday up to Tuesday, May 6, at the Jeddah Center for Forums.



The current edition of the event is themed ‘Kingdom on the Rise’ and showcases premiere real estate projects of renowned developers. Some of the projects are still on blueprint, development state or have defined the country's skylines.



Lifestyle Developers showcase its new projects at stand G45 whichs is being attended to by company representatives who answer queries for its projects.



Lifestyle Developers’ flagship project "568 AlZahra Residences," an integrated community for luxury living, is setting new benchmarks in the Saudi real estate business.



The company's projects, which draw strong interest from the middle-income section of society and young professionals, have been undergoing brisk sales a few weeks after they were launched.



The "Al-Nadha Residences" and the "Diyar Al Salam" projects reflect the innovative approach of Lifestyle Developers to offering a comprehensive range of conveniences for urban living at competitive prices.



“The success of our projects is a clear testimony that today’s home owners seek projects that combine upscale conveniences and value-for-money comfort," said Sultan Sobhi Batterjee, President of Lifestyle Developers, said.



"As part of our continued commitment to our community, Lifestyle Developers will ensure that our projects remain aspirational yet accessible and, as always, designed to maximize the value of the investor’s money,” he added.



Cityscape Jeddah 2014 is expected to attract more than 8,000 visitors, including top-rate institutional investors, real estate developers, government officials, architects and real estate professionals involved in the design and construction of major real estate developments.



Meanwhile, Hisham Malaika, Partner and Head of Property and Social Infrastructure at Arcadis in Saudi Arabia, told the Saudi Gazette that the current real estate developments in the Kingdom will provide a big boost to the nation's GDP.



Malaika said the 2014 Global Built Asset Performance Index (BAPI) report, which assesses how the performance of built assets contribute to the nation's GDP and how countries can boost these assets, will be launched on May 7 for industry leaders in Saudi Arabia.



Hisham added that the 2014 BAPI report reveals that Saudi Arabia is the fastest growing market in real estate properties.



“We have a huge population growth but we don’t have built assets that can accommodate this growing population. Built assets is not only residential, it’s about anything that has been built, any facility that accommodate people," he said.



 “In Saudi Arabia, there is a lack of awareness of built assets life cycle. I believe that many of built assets that have been created with short term main set, which means to build quickly and cheaply, which is non-sustainable,” said Hisham.



“There’s a need for a paradigm shift in how investors, developers and authorities look at the assets. They should spend more time in planning the assets, they should focus more in obtaining quality consultants, quality contractors, quality suppliers and materials to create an asset that’s built for long term,” Hisham added.



Ali Ashraf, a senior marketing specialist, said the Prince Sultan Cultural Center (PSCC) has been built on a 2.4-million-square-meter land north of Jeddah, adjacent to King Abdullah Sports City.



"We have four major components — residential, health care, hospitality and educational components- which will include a medical university and two international schools. It will also have 600 villas and 7000 residential apartments,” he said.



“In hospitality, there will be a retail mall, exhibition center, and three hotels. It will have the largest artificial lake in Saudi Arabia,” he added.



At the event, Al-Hamra Real Estate Development invited designers to take a look at the quality craftsmanship of its property Falcon Island, which has 150 luxury residences.



The company has partnered with interior desing group, Luxury Living and the home-furnishing brands Bentyley Home, Fendi Casa and Kenzo Maison.



Falcon Island aims to ride on the crest of growing interest at Ras Al-Khaimah's tourism and real estate offering which has helped the Emirate’s prime position as a hub for investors.



Ahead of the opening of Cityscape, Benoy Kurien, general manager of Al-Hamra Real Estate Development, described the interior designs of Luxury Living, Fendi Casa, Bentley Home, and Kenzo Maison as “epitome of opulent interior design".