Historic Diriyah city being transformed into a modern urban hub
As Saudi Arabia embarks on its mission to
diversify its economy beyond oil, an ambitious new project is taking shape. The
$64 billion Diriyah development is set to transform the historic city of
Diriyah into a vibrant urban hub, harmonizing its rich heritage with modern,
sustainable living. The project is a key part of the Saudi Vision 2030
initiative and is on track to be a game-changer for the kingdom.
Spanning 14.5 square kilometers, Diriyah will
feature a blend of luxury hotels, branded residences, retail outlets, and other
essential amenities to foster a true community. The project is already seeing
impressive results: over 3.5 million visitors have explored the UNESCO-listed
At-Turaif site, and Bujairi Terrace, the district’s first dining area, attracts
more than 120,000 visitors every month. The Luxury Collection's Bab Samhan
hotel, the first luxury hotel to open, is also operating at high occupancy
levels with strong average daily rates (ADR).
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“What life will be like in Diriyah is
becoming more tangible every day,” says Kiran Haslam, Chief Marketing
Officer at Diriyah Company.
Sustainability at the Core
Sustainability is central to Diriyah’s design,
both environmentally and socially. The project has achieved LEED Platinum
certification, underscoring its commitment to green building practices. With a
floor area nearly six times the size of downtown Dubai, the development will be
a fully mixed-use community designed for living, working, and leisure, with a
focus on human-centric architecture that honors centuries-old traditions.
“Three hundred years ago, people lived in
harmony with nature. They built with natural materials like mud, lived more
sustainably, and embraced community living,” explains Mohamed Saad,
President of Diriyah Development Company. “Today, cities struggle
with pollution, traffic, and isolation. We want to return to the sustainable
roots of how people once lived and recreate that.”
To ensure a pedestrian-friendly environment
with a traditional atmosphere, Diriyah has invested in an extensive underground
infrastructure network, including roads, utilities, and parking spaces. This
allows motorized traffic to be hidden beneath several levels, freeing the city
streets for pedestrians. The project also employs mud-brick construction to
help regulate temperature in Riyadh’s extreme climate, while a once-barren wadi
is being revitalized with 6.5 million indigenous plants, irrigated by desalinated
water and smart irrigation systems.
Hospitality and Real Estate
Diriyah’s hospitality pipeline is nothing
short of impressive, with plans for over 13 hotels, ranging from ultra-luxury
brands like Ritz-Carlton, Raffles, Baccarat, and Six Senses to lifestyle brands
like Moxy and Radisson. However, the real estate vision extends beyond hotels,
with the development of 550 branded residences and Diriyah-branded apartments
targeting the growing middle class. Branded residences have been in high
demand, with the first batch of 106 Ritz-Carlton villas selling out rapidly,
followed by strong interest in residences by Corinthia, Baccarat, and Raffles.
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“There is huge demand for homes that
blend modern luxury with cultural values. This is just the beginning, and we plan
to expand our branded residences significantly,” says Saad.
Each residential offering caters to specific
lifestyles and demographics. For instance, Corinthia villas come with large
underground garages to accommodate multigenerational family living, which
aligns with local cultural preferences.
Building a Community
While high-end residences are a major part of
the development, Haslam emphasizes the importance of Diriyah’s own apartments,
which are designed for those living and working in the area. This approach is
key to fostering a strong, connected community, especially as the middle class
seeks affordable housing options.
“We’re moving into a phase where we’re
launching our own unbranded homes, and that will be essential to creating a
real sense of community here,” says Haslam.
Diriyah will be more than just a place to
live—it will be a thriving community with over 100 restaurants, flagship luxury
stores, co-working spaces, museums, fitness centers, clinics, and entertainment
venues, including an opera house and a 15,000-seat arena. The masterplan also
includes schools, a university, and healthcare facilities to ensure the
community thrives in all aspects.
Investment Opportunities
For investors, Diriyah represents a vast
opportunity. The Diriyah Development Company is actively seeking joint
ventures, land sales, and lease partners across hospitality, retail, and
residential sectors.
Read More Diriyah
to attract tourists all year round
“Opportunities here range from smaller
investments to multi-billion-dollar ventures,” says Saad. “Hotels,
for example, are showing healthy returns with an internal rate of return (IRR)
of 9-10%, depending on the classification. The performance of the assets we’ve
already opened has been strong, and we expect this trend to continue.”
As Saudi Arabia moves toward its Vision 2030
goals, Diriyah’s phased rollout will continue through 2028, with new areas and
assets coming online each year. From 2028 onwards, museums, hotels, residences,
and retail spaces will be seamlessly integrated into the urban fabric.
Strategic Location and Future Growth
Diriyah’s proximity to Riyadh, one of the
fastest-growing G20 capitals, offers a significant advantage. King Khalid
International Airport is also poised to become one of the world’s busiest
aviation hubs, enhancing Diriyah’s connectivity and accessibility.
As
the Kingdom progresses with Vision 2030, Diriyah stands out as a model for
future cities—one that blends deep cultural authenticity with cutting-edge
sustainability and modern livability. This ambitious project will not only
reshape Diriyah itself but could serve as a blueprint for the cities of
tomorrow.
Source: www.hospitalityinvestor.com
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