Saudi Arabia concludes participation in UK defense show    First in Europe: Italy to require all employees to have Covid health pass    Saudi Airlines showcases its aircraft to celebrate National Day    Al-Badi to participate in Endurance World Championship in Italy    UAE makes paradigm shifts in equal pay for both sexes    SFDA seizes more than 52,000 perfume manufacturing materials    Africa faces 470 million COVID-19 vaccine shortfall this year    Venezuela's justice system aiding repression: Human rights probe    King, Crown Prince congratulate Chile president on Independence Day    Construction of the world's largest LEGO brick build of a F1 car begins    Global agreements to enhance auditing profession in Saudi Arabia    Women owning the peace    Crown Prince receives phone call from Spain's PM    Coalition forces intercepts, destroys 4 Houthi armed drones, 1 ballistic missile targeting Jazan    GAMI and its partners meet with international investors in London    Diriyah Contemporary Art Biennale will open to public in Riyadh's JAX district from Dec. 11    New study finds specific white blood cell can help treat cancer    Al-Hilal moves into the quarterfinals of AFC Championships 2021    Event Economy: Formula 1 race!    Britain savors a new sporting star in tennis champion Raducanu    Bollywood actor Sidharth Shukla dies at 40    Custodian of the Two Holy Mosques Directs KSrelief to Urgently Provide Malaysia with Medical, Preventive Equipment and Supplies to Address COVID-19 Pandemic    Weather Forecast for Sunday    Custodian of the Two Holy Mosques Congratulates President of Maldives on Independence Day    RSNF Commander Patronizes Ceremonial Launching of His Majesty's Ship "Jazan"    OIC Condemns Houthi Attempts to Target Civilians in Saudi Arabia    Philippines evacuates thousands as monsoon rains flood cities, provinces    Heavy rain in India triggers floods, landslides; at least 125 dead    U.S. Records 64,321 New Infections of Coronavirus    Without Fans, Tokyo Olympics Kicked Off    Pilgrims Perform Dhuhr and Asr Prayers at Arafat Holy Site    Dr. Mohammed Sulaiman Al-Jasser, Saudi Arabia's Pick to Chair IsDB Group for the next five years, unanimously approved by BoG Committee of Procedures    Saudi Press: Fitch affirms Saudi Credit Rating at "A" with a revised outlook to stable from negative    Handled Cargo at Saudi Ports Increases during June 2021    SDAIA, DARP & STC Launch Pilgrim's Smart Bracelet (NUSK)    Tabuk sculptor spends 8 years in carving entire Holy Qur'an on 30 marble slabs    2 Goals by Diaz Gives Colombia 3rd Place at Copa America    Yusuf Khan is dead, long live Dilip Kumar    Legendary actor Dilip Kumar, 98, passes away, and with him an era    Saudi Cinema Night at Arab World Institute in Paris Kicks Off    KSU Leads Joint International Scientific Project for Early Detection of Breast Cancer    Saudi Arabia to Participate in Cannes Film Festival 2021    Arab Cup U-17 Championship Draw Saudi Arabia, Morocco, Palestine, Kuwait, in the 1st Group    AWI Hosts Saudi Cinema Nights in Paris    Brazil Beats Chile at Copa America Despite 2nd-Half Red Card    Council of Senior Scholars: Muslim Brothers' Group Don't Represent Method of Islam, rather only Follows its Partisan Objectives, Violating our Graceful Religion    Eid Al-Adha Prayer Performed at the Grand Holy Mosque    Pilgrims Perform Dhuhr and Asr Prayers in Arafat Holy Site    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Lending licenses to boost Saudi real estate market
Published in The Saudi Gazette on 03 - 06 - 2014

JEDDAH – Major Saudi cities are forecast to see strong demand for both residential and commercial real estate as local banks look to improve access to property lending, Jones Lang LaSalle has said in a new report.
Its first quarter Riyadh and Jeddah Real Estate Overview report, it said an increase in lending to real estate end users will contribute to raised levels of credit and confidence in the country.
Jamil Ghaznawi, country head of Saudi offices of JLL, said: “We are witnessing strong demand for residential property and increased demand for commercial space from both the private and public sectors, which is being fuelled by continuing and new large infrastructure projects throughout the Kingdom.
“With the Saudi Arabian Monetary Agency (SAMA) issuing licenses to allow leading banks to offer real estate financing, we expect improved access to home ownership in the Kingdom.”
According to data from the Ministry of Justice, Riyadh was the most active Saudi market in 2013 in terms of real estate transactions with a total value of SR99 billion ($26.5 billion).
The report said residential prices and rentals in Riyadh have continued to increase in most sectors of the Riyadh residential market over the past six months.
It said notable increases have been recorded in villa prices to the north of the city and in apartment prices to the east. Rental increases have generally been more modest, typically in the range of one to three percent, the report said.
It added that office rents for prime buildings have remained stable in recent months, while those in secondary buildings have declined marginally.
JLL said this trend is likely to continue over the rest of 2014 with high levels of new supply increasing the overall market vacancy rate (currently around 20 percent) and exerting downward pressure on rents outside of a limited number of prime buildings.
In Jeddah, data from the Ministry of Justice showed real estate transactions totaled $24.2 billion in 2013, with more than 40,132 individual deals.
JLL added that Jeddah's office market has the lowest vacancy levels of any major office market in MENA (at around 10 percent), reflecting the active demand for space from both the public and private sectors.
Residential prices in Jeddah have continued to increase with apartments (13 percent) recording a greater increase than villas (11 percent) over Q1. The western region remained the preferred residential location, recording the greatest increases in prices, JLL said.
“This demand has resulted in rentals growing by around 10 percent for Grade A space over the past six months, with somewhat lower increases reported in secondary buildings,” the report said. — SG/Agencies


Clic here to read the story from its source.