A Landmark Partnership Set to Redefine Jeddahโs Skyline
As part of a deal that is to transform the Saudi Arabia real estate sector in Jeddah, Saudi-based First Avenue development has signed a strategic partnership with the Al Shati Real Estate Fund to develop a landmark mixed-use project in the Al Shati District of Jeddah, which is one of the prime locations in the city. With an area of 15,619 square meters, the project will be a mix of commercial, residential and hospitality elements, which are becoming increasingly popular in the Jeddah real estate industry. Since the construction will be finished in three years, the project is expected to generate a positive financial impact in the year 2026, making it one of the central players in Jeddah property development.
First Avenueโs Strategic Partnership for Jeddah Project
The agreement also entails First Avenue having 14.9 percent of the capital of the fund, which makes it have a vested interest in the project. The company will also be offered a 12 percent development fee on real project costs which shall be finalized after the design and regulatory permits are approved.
- Partnership scope: The whole project architectural design
- Regulatory permits: Obtaining all the relevant regulatory permits
- Construction management: Management of construction to guarantee quality and on time delivery
- Marketing control: Controlling marketing and advertising of the commercial and residential parts
Not only does this partnership enhance the portfolio of First Avenue, but it also fits into the vision 2030 of Saudi Arabia itself which focuses on the modernization of cities, and the diversification of the economy.
Key Features of the Jeddah Mixed-Use Development
Jeddah mixed-use project is positioned well in one of the upscale areas of Al Shati District with high valued properties and access to the waterfront. When finished, the development will include:
- Commercial spaces: Retail, office, and service provider commercial spaces
- Residential units: Housing units that will serve a variety of family units and contemporary lifestyles needs
- Hospitality services: Hospitality services, which could comprise serviced apartments and high-end hotel services
The 15,619 sqm location will be maximized to have high foot traffic and it will be a combination of lifestyle, business and leisure in one interconnected community hub.
Impact on Jeddahโs Urban Landscape
Al Shati District is also one of the most sought-after locations in Jeddah since it features luxury development and it is within a short distance to the major business areas. This combination of residential, commercial and hospitality components in the project is the best international practice in urban planning where mixed-use developments create sustainable and vibrant urban areas.
In the case of Jeddah, the project is not just about making a real estate investment but a transition to concentrated, walkable urban neighbourhoods that stimulate community interaction and shorten commuting.
Economic and Community Benefits of the Project
Economically, the project will bring a lot of value to the real estate market of Jeddah. Major advantages are:
- Job creation: Creation of jobs in design, construction and during the process of operation
- Property value boost: Greater value of real estate in nearby communities because of quality infrastructure
- Investor interest: Development of interest by both local and foreign investors in Jeddah real estate opportunities
- Long-term returns: Positive ROI to stakeholders in the long term and returns starting in 2026
At the community level, the development will help in improving the standards of lifestyle due to modern amenities, accessibility, and diverse housing and leisure options.
