Investing Around New Murabba in Riyadh: Mistakes to Avoid

New Murabba is a new downtown for Riyadh. Six mistakes investors make buying land, property or businesses nearby on the strength of the announcement.

New Murabba is a PIF-backed development planned as a new downtown in north-west Riyadh, with residential, office, retail, hospitality and cultural uses around a landmark centrepiece. Large urban projects can lift demand in surrounding districts, but the timing and extent are uncertain, and the development's scope and phasing may change. Most mistakes around it come from paying today for demand that may take many years to arrive.

Why these keep happening

Announcements of major projects produce a rush of interest in adjacent land and property, with prices moving before any construction begins. Investors see the renderings, imagine the finished district and buy at prices that already assume it. When the project phases slowly, those investors carry costs with no income.

1. Paying today's price for tomorrow's district

Land and property near announced projects are often priced as if the project were complete. The premium can take years to be justified, if it ever is.

• Avoid it by: Value the asset on current use and demand, then treat the project as upside.
• Proof it is closed: A valuation from an accredited valuer based on current market evidence.

What it costs you: Years of holding costs and weak returns.

2. Ignoring holding costs on land

Undeveloped urban land may be subject to the White Land Tax, which was reformed in 2025, as well as financing and maintenance costs.

• Avoid it by: Confirm whether White Land Tax applies to the plot and at what rate for its zone.
• Proof it is closed: A holding cost schedule including any applicable tax, confirmed with the authority.

What it costs you: Annual charges that erode or erase the expected gain.

3. Assuming the project's phases will reach your plot soon

Large developments open in phases. The phase nearest to your plot may be among the last.

• Avoid it by: Study the published phasing and access plans and how they relate to your site.
• Proof it is closed: A map showing your site against the phases and access routes as officially published.

What it costs you: A long wait for the demand you paid for.

4. Buying without checking planning and zoning

Land near a major project may be subject to planning changes, new road alignments or restrictions that affect what you can build.

• Avoid it by: Check zoning and planning status with the municipality through Balady before buying.
• Proof it is closed: Written planning information for the plot from the relevant authority.

What it costs you: A plot you cannot develop as intended.

5. Opening a business ahead of the footfall

Retail and hospitality businesses opened near a construction site depend on workers and existing residents until the new district is populated.

• Avoid it by: Serve the demand that exists today, such as construction workforce and neighbouring districts.
• Proof it is closed: A business plan that is viable on current footfall.

What it costs you: Losses during a long construction period.

6. Ignoring competition from the project itself

A new downtown adds a great deal of new supply in offices, homes and retail, which can compete with nearby assets rather than lift them.

• Avoid it by: Consider how the project's own supply will compete with your asset.
• Proof it is closed: A supply analysis including planned space in the project.

What it costs you: Lower rents or occupancy than expected.

A short check before you sign

• Is the valuation based on current evidence rather than the finished project?
• Are holding costs, including any White Land Tax, calculated?
• Do you know which phase is closest to your site and its status?
• Is zoning confirmed with the municipality?
• Does the business plan work on today's footfall?
• Has the project's own supply been considered?

If it has already happened

If you have already bought near the project at a high price, focus on reducing holding costs and generating interim income. Temporary uses allowed under planning rules, such as parking, storage or modular commercial units, can offset costs. Revisit the plan when the project's phasing is clearer, and avoid adding more exposure until then.

If a Vision 2030 programme or market trend is shaping your investment case, Domira can test it against real land, construction costs and local demand in the city you are considering before you commit capital.