Increasing green space, especially in densely built-up areas is considered to be a valuable climate change adaptation response in order to reduce the threat of high temperatures to human health and comfort and to controlled global greenhouse gas emissions. Practical responses to climate change, under urban conditions, in order to avoid or reduce trees and shrubs vulnerability, can be considered drought resistant planting approaches, as the addition of organic amendeds to soil. The improvement of physical–chemical soil quality is a key step for carrying out xeriscaping programs of urban green spaces in Mediterranean semiarid areas. Organic amendments, particularly compost, have been receiving a renewed attention not only in horticulture but also in the context of restoring disturbed urban soils to address environmental issues as well as to improve trees and shrubs growth. The influence of increasing rates (0, 15, 30, and 45%) of composted sewage sludge (SSC) placed in the plantation hole on both urban soil properties and growth for three native Mediterranean woody hedge species was monitored over a 2-year period after planting. The experiment was supported by a xerogardening project in an urban context under semi-arid conditions. The results indicate that the urban soil physical characteristics were positively influenced by the addition of SSC: the 45% rate showed an increase in both moisture and infiltration values, thereby increasing the volume of plant-available water in the soil. The chemical properties of the amended soils were also directly affected by the SSC rate, but the effect of the compost on organic matter, nitrogen and potassium contents decreased over time. Our results prove that the hedge growth response to the compost treatments is also highly dependent on the rate of compost used. At the end of the trial, in Rhamnus and Myrthus plants 30% compost level guarantees the best performance; in fact, the further addition of 15% of compost led to a significant decrease in hedge and diameter values, in particular in Myrtle. This could be explained by the high pH at 45% compost, which would seem not to suit the physiology of the two species. On the other hand, in Phillyrea plants, the rate of 45% compost gives high performance equal to that of 30%; it would therefore seem that the high pH at 45% compost does not influence the nutritive elements’ absorption and, as a consequence, the growth. The use of composted sludge as an amendment for sclerophyllous could be feasible and, what is more, helpful to mitigate the environmental impact of organic waste disposal. Moreover more natural vegetation can be introduced into urban parks and green spaces in semi-arid environments to encourage sustainable landscaping and xerogardening.