The Real Estate Impact of Recreational Areas on the Residential Property Values in Riyadh, Saudi Arabia

Abstract

Recreational areas are one of the most important uses in the modern residential neighborhoods because they improve economic resources, social life, and environmental quality. This paper discusses the impact of recreational areas on residential property values in Riyadh. The paper relies on the descriptive and comparative analysis of the case study model 'Al-Hokair Land' by extrapolating the residents' view of the residential properties close to the recreational area in Al-Hamra neighborhood. The paper also analyzed the relationship between recreational area and land price changes in urban communities within Al-Hamra district. The paper found that the average land price in Al-Hamra district is $826 per square meter, which is the highest compared to the neighboring areas. Moreover, land prices in urban communities near the recreational area are the highest with an average of $933 per square meter. Finally, the value of residential properties areas is affected by environmental, security, urban or social factors associated with recreational activity. Therefore, the paper recommends improving the quality of the urban environment to ensure the stability of the residential properties value in line within framework of the Saudi Vision 2030.