Globally, mixed-use developments are emerging as the new model of real estate expansion, integrating luxury hotels with co-working spaces, wellness centres, and retail combined with short and long-term residential units.
Regionally, real estate developers are catering to this demand and, in fact, planning for cities that can only become a reality, a decade from today with extensive foresight and vision.
This ecosystem has allowed business models to blend under one roof, yielding ultimate cities, like the Jeddah Airport City in Jeddah City, Saudi Arabia. The 1.91 million m2 GBA masterplan for Jeddah Airport City integrates an innovative mixed-use community in the kingdom, making it an aerotropolis – a metropolitan sub-region – whose infrastructure, land use and economy are centred around a major airport.
The development of Jeddah Airport City at King Abdulaziz International Airport (KAIA) is being led by SARH Real Estate Development Company (SARH).
SARH has a rich investment and real estate background and has taken on the role of filling the gap of delivering best-in-class quality projects in line with Saudi Arabia’s Vision 2030, its senior executive tells Construction Week Middle East.
“SARH has a holistic approach towards real estate investment, management, and development and acts as a one-stop-shop, i.e., from site acquisition to development plans, managing the budget and cash flow to financing, leasing, construction and project management, disposition and property management,” says Sultan Al-Harbi, chairman and CEO of SARH Real Estate Development Company.
“Our current efforts are centralised in the Makkah province, Abha region, and the northern area of the kingdom, where we are focused on delivering projects conferring to our standards and by ensuring that its establishment brings value to the individual, investor, business, and society,” he notes, adding that they analyse the impact of their projects and engage local companies with global organisations to uplift the services to an international level.
Sustainability initiatives at Jeddah Airport City
| Ventilated façades and roofs | Consists of a support structure, an insulation layer, a cavity, and a cladding layer anchored to the structure |
| High-efficiency glass | Improves energy efficiency depending on the solar coefficient and characteristics |
| Green Roofs | Retains rainwater, purifies the air, reduces ambient temperature, and has plants to prevent overheating |
| Solar collectors | Uses PV panels for active solar heating |
| Mini-wind Production | Complements PV installation |
| Rainwater use | Uses traditional methods for potable and non-potable water to reduce the pressure on processed supply water |
| Inmotic or domotic systems | Controls and optimises the operation of all mechanical equipment |
| Pneumatic waste collection | Optimises waste management |
The Jeddah Airport City will have five main components: a Business Centre, Accommodation facilities, a Lifestyle Centre, an Entertainment Zone, and an Exhibition Centre. The developer adds that the central role of the city [Jeddah Airport City] is to act as the principal entry-port to the kingdom due to its geographical location and function as an effective centre of activity
and network.
Planned to be developed in three main phases with different SPVs (special purpose vehicles), the Jeddah Airport City is expected to be fully operational by the beginning of 2029. Al-Harbi points out that the project is currently in its detailed design phase, which will be finalised 18 months from now.
“The project is smoothly integrated with the operations of the airport and will work as an extended terminal, with the aim of increasing the transit traffic up to 30%
of the region cap and enhancing the traveller journey for which we’re
working as one team with our partners
from the Jeddah Airport Company.”
The future strategy
On fashioning an exceptional city with an iconic vision, Al-Harbi notes: “We are witnessing an era of development supported by Vision 2030 that has opened new markets in the kingdom and created countless opportunities in sectors such as entertainment, culture, tourism, residential, and infrastructure, in addition to empowering women – which has directly impacted the purchasing power
of individuals.
He summarises that real estate is always driven by supply and demand: “The current change in consumer behaviour is pushing forward a future digital infrastructure strategy with original base concepts and smart cities that support logistics and businesses, and the residents’ ease of life.
“Interest in iconic projects has shifted to a demand for environmental and financially responsible projects. In such an increasingly competitive market, we knew the successful ones would be those that provide the best value and service to clients,” Al-Harbi concludes.
This story first appeared in the August issue of Construction Week Middle East magazine, which you can read in full here.