Assessing the Impact of urban renewal Gigaprojects through cultural preservation: A Case Study of Diriyah Gate’s Influence on Residential Property Prices in Riyadh

Abstract

This research investigates a gigaproject that is set as a part of Saudi Arabia’s Vision 2030, the research examines the extent that Diriyah Gate project inauguration has on nearby residential property prices. Using a variant of difference-in-difference methodology and a rare comprehensive dataset from Suhail.ai, this study is first of its kind in the region. The findings reveal that neighborhoods closest to the project experienced a significant decline in property prices ranging from 16% to north of 25% post-inauguration, likely due to the negative externalities that comes with the inauguration. Neighborhoods that are further away and buffered by those closest saw on average a 9% increase in residential property prices, reflecting positive spillovers from the project. The study contributes to the existing literature on both urban renewal and cultural preservation while also enriching the extensive body of research on rapidly developing regions.