The Middle East real estate market is undergoing a significant transformation, driven by the adoption of advanced technologies and a shift towards mixed-use developments. The region has been proactive in integrating innovative technologies to enhance efficiency, sustainability, and innovation within the real estate sector.
Shift Towards Mixed-Use Developments
Mixed-use developments that seamlessly blend residential, office, retail, leisure, and even hotel spaces have been gaining momentum worldwide. Nowhere is this trend more evident than in the GCC, particularly in the UAE and Saudi Arabia. These developments are reshaping urban living by offering a fully integrated work-life experience. With convenience and accessibility at their core, they aim to create self-sustaining communities that offer a holistic living experience. This trend is driven by the desire to keep areas vibrant year-round and to maximise revenue generation.
The integration of various property types within a single development fosters a dynamic environment, attracting diverse groups of residents and businesses. This approach not only enhances the quality of life but also stimulates local economies. Furthermore, mixed-use projects often prioritise sustainability, incorporating green building technologies to align with national environmental goals.
As Faisal Durrani, partner and head of Middle East research at Knight Frank, has noted, Dubai stands as a global role model for work-life integration. Its diverse mixed-use projects demonstrate how a well-balanced combination of residential, commercial, and leisure spaces can foster vibrant, dynamic communities.
Why Mixed-Use Developments are Thriving in the GCC
So, why are mixed-use developments surging in popularity? And how can technology help property owners, investors, and developers meet the growing demand?
In cities like Dubai and Riyadh, mixed-use developments cater to the evolving needs of modern city dwellers. They offer convenience and community within a single location and offer a range of benefits, including:
- Flexibility: Tenants can enjoy everything from workspaces to entertainment without needing to leave the community.
- Attracting Tenants: A diverse asset mix appeals to a wide range of tenants—families, businesses, and tourists alike.
- Sustainability: Shorter commutes and walkability contribute to the sustainability of urban living.
The 15-minute City
The concept of the 15-minute city is not new; however, it has become a buzzword in recent years. Similar ideas can be traced back to the 1800s when towns were built in relation to local amenities or the idea of “compact cities” in the 1970s.
So, why has the 15-minute city grown in popularity? According to a study by TUC, the average person spends 59 minutes travelling to and from work per day. This is five minutes longer than it was 10 years ago, and outside of large cities, around 70% of commuters travel by car. With the rise of remote working, there has been a snowball effect on commercial real estate, public transport and retail due to a reduction in demand and foot traffic.
The 15-minute city offers a vision of urban planning that prioritises proximity and accessibility to essential services within a 15-minute walk from residents’ homes. Younger generations, particularly Gen-Z, are demonstrating a strong demand for sustainability in real estate. For example, 80% of Gen-Z prioritise sustainability credentials when choosing a home, and 63% prefer walkable neighbourhoods with access to public transport, supporting eco-conscious urban living.
As a recent article by UCEM states, “the built environment is responsible for around 40% of global CO2 emissions per year, from construction through to operation, demolition and redevelopment.” With the sector playing a significant part in the climate crisis, the 15-minute city concept provides an opportunity to enhance sustainability, reduce carbon emissions, and create cities that are eco-friendly.
In the Middle East, the 15-minute city is being implemented in various ways, including:
UAE:
Expo City Dubai – a 15-minute city where you can live, work and play. An innovative business hub integrated with modern residences, cultural spaces, unique leisure facilities, restaurants and retail outlets, all within a sustainable city.
Saudi Arabia:
The Line – A cognitive city stretching across 170 kilometres, from the epic mountains of NEOM across inspirational desert valleys to the beautiful Red Sea. A mirrored architectural masterpiece towering 500 meters above sea level but a land-saving 200 meters wide. The Line redefines the concept of urban development and what cities of the future will look like.
As urban populations continue to grow and tenant expectations shift, property owners must embrace innovative solutions to manage these complex, multi-faceted spaces effectively. That’s where technology becomes essential.
The Role of Technology in Managing Mixed-Use Developments
The rise of mixed-use developments has accelerated the adoption of proptech solutions in the region. The complexity and scale of these projects require advanced technological tools to ensure seamless integration and management of various components. For example, connected tools to streamline asset management and boost communication between teams.
Managing mixed-use developments efficiently requires tools that can handle the complexity of blending multiple asset types into one unified solution. The partnership between mixed-use developments and technology not only improves operational efficiency but also enhances the overall user experience, making these developments more attractive to investors and occupants alike. In addition, owners and investors are realising that technology is key to delivering the high-quality services and seamless experiences tenants expect today.
Yardi: A Unified Solution for Mixed-Use Management
Yardi’s integrated asset, property and investment management platform is perfectly suited to support the unique needs of mixed-use developments. Here’s how Yardi helps developers, owners, and property managers maximise their investments:
- Streamlined Operations: Ensure seamless operations across various asset types by managing residential, commercial, retail, and leisure spaces on one platform.
- Financial Management: Streamline accounting with automated billings, collections, and revenue recognition while providing real-time insights and forecasts.
- Construction & Procurement: Stay on track with real-time tracking of timelines, budgets, and supplier management.
- Tenant Engagement: Automate the tenant lifecycle from lead generation to lease management, ensuring smooth communication and increased tenant satisfaction.
- Facility Management: Proactively manage maintenance and vendors with Yardi’s predictive and preventive maintenance strategies, ensuring facilities operate efficiently.
- Data-Driven Decision Making: Empower property managers with real-time insights into asset performance, tenant behaviour and market trends.
Yardi Client Success: Emaar
Through Yardi’s unified, cloud-based platform, Emaar, one of the largest real estate developers in the UAE, was able to enhance operational efficiency and deliver a superior tenant experience across its assets, including residential, retail, and leisure properties. By embracing digital transformation, Emaar continues to set new benchmarks in property management and tenant satisfaction.
The Future of Mixed-Use Developments in the GCC
As the popularity of mixed-use developments continues to rise in the GCC, the demand for integrated technology solutions like Yardi will only increase. Whether managing residential-led communities with retail and leisure components or commercial-focused developments, property managers need comprehensive, scalable platforms that can meet the evolving needs of tenants.
By adopting innovative tools to manage everything from investment to facility maintenance, developers and property owners can create vibrant, efficient, and sustainable communities that thrive in the modern world.