The recent developments offer smarter, greener, and more human-centered cities, according to a recent analysis of the construction industry by JLL.

Climate and Infrastructure Challenges

As governments face climate and infrastructure challenges, real estate projects help reimagine how cities can meet both environmental and social needs.

New smart cities are emerging worldwide. Songdo in South Korea is built on land reclaimed from the Yellow Sea. The Bill Gates Foundation plans to build Belmont City from scratch on land in the Arizona desert. Saudi Arabia is constructing a new city called Neom, which includes the advanced floating complex Oxagon, powered by renewable energy.

"The new cities are designed around a guiding principle such as sustainability, education, or tourism, recreation, and entertainment," says Maroun Deeb, Head of Project and Development Services at JLL, KSA, and Bahrain. "Redefining the concept of a city, in turn, pushes us to think outside the box and adopt innovative delivery methods," says Deeb.

It's not just about creating new cities. Across Europe, dedicated districts like La Défense in Paris, France, are facing a different set of challenges as they attempt ambitious regeneration plans that meet net-zero carbon goals.

"Projects in established cities must deal with crowded living environments," says Deeb. "While greenfield site freedom brings its own challenges, not least managing expectations around what is possible."

Diverse, Defining Cities

When it comes to creating something new, it is still important to consider local customs and what has happened before. "We approach sustainability challenges with an advanced approach that honors cultural heritage," says Deeb. "It is primarily determined by the needs of the people, reflecting traditional values."

He explains how a new mixed-use shopping center project in a historic city in Saudi Arabia uses chosen materials to preserve the iconic traditional architectural style of mud bricks and withstand the local terrain and climate.

Cultural factors are reflected in public spaces for prayer and socialization, as well as facades that facilitate natural light while maintaining interior privacy. Evolving leisure and entertainment norms are provided with an amphitheater, luxury hotels, and premium dining facilities.

Focus on Details

When tackling mega projects at this scale, comprehensive data and initial feasibility studies are essential to clarify profitability and meet local social and environmental needs.

Complex, multi-year projects require tens of thousands of contractors. Market-specific information can identify potential supply chain issues—such as challenges in sourcing local materials—allowing for better cost optimization.

While these factors are also common at the completion of large regeneration projects in established cities—such as in King's Cross in London—projects built on previously undeveloped sites may face additional logistical and communication obstacles.

Smart construction technologies are playing an increasingly important role in understanding how to bring ambitious construction plans to life. "We use technology throughout the entire life cycle of our projects for smart, data-driven decision-making," says Deeb.

He explains how 3D scans of existing buildings are used to create detailed "digital twins"—particularly useful when predicting how new structures will fit into existing surroundings.

It also helps with real-time monitoring of construction progress and early issue detection, simultaneously improving on-site health and safety.

Collaboration Helps Create Boundless Cities

While many projects are driven by the government, collaboration with the private sector can be crucial in providing public land for private development. In the Middle East, new laws have also made it easier for private entrepreneurs to set up regional headquarters, enhancing skills and available workforce for works.

"The government has recognized that private investment and public-private collaboration are vital for achieving their bold initiatives," says Deeb.

This foresight seems to be paying off. Fueled by economic diversification, the construction market in Saudi Arabia is expected to record a 4% growth (AAGR) between 2024 and 2027. Deeb says it is an exciting time for the sector.

Pioneering projects such as The Line—a 170-kilometer-long, 500-meter-high, and 200-meter-wide area in Neom that avoids roads and cars for a zero-emission environment—are trying to set new standards for urban properties while introducing a more sustainable life in the city.