Arab Parliament Condemns Houthi Militia Launching of Drones towards Saudi Arabia    Mauritania Registers 177 New Cases of Coronavirus    RSNF Commander Patronizes Ceremonial Launching of His Majesty's Ship "Jazan"    First batch of Umrah pilgrims arrives in Grand Mosque after Hajj    King, Crown Prince congratulate Ethiopian PM on re-election    Iraqi PM announces arrest of Sadr city bombers    Iran's ballistic missiles, support for militias must be included in Vienna talks: GCC chief    UAE sends plane carrying 56 tons of medical supplies to Indonesia    Lebanon signs fuel deal with Iraq to ease power crisis    'Lack of global solidarity, slow vaccination rate have put Indonesia in COVID-19 glare'    HRH Crown Prince Condoles Indian President on Victims of Landslides    Jordanian Health Ministry: Age to Receive COVID-19 Vaccination Reduced to 12 Years    Philippines evacuates thousands as monsoon rains flood cities, provinces    Cultural Rock Arts in Hima Najran Listed as Saudi Arabia's Sixth UNESCO World Heritage Site    Saudi students win 14 international prizes in 3 international Olympiads    Heavy rain in India triggers floods, landslides; at least 125 dead    Without Fans, Tokyo Olympics Kicked Off    Let the Games begin! Tokyo 2020 kicks off with manga-inspired opening ceremony    Alireza, Al-Dabbagh carry Saudi flag at Olympics opening ceremony    Sbihi becomes first Muslim to carry British flag at Olympics opening ceremony    Netflix loses 400,000 subscribers in US, Canada, blames COVID-19 for slow growth    Six Polish Olympic swimmers forced to return home after administrative error    Hict to open a privately owned regional headquarter in Riyadh    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    Britney Spears says she won't perform while under father conservatorship    Dubai ruler launches $1 million Arab Coders challenge    UAE lauds Saudi efforts after OPEC agrees to boost oil output    'Titane' wins top prize at Cannes Film Festival    Saudi Press: Fitch affirms Saudi Credit Rating at "A" with a revised outlook to stable from negative    Award-winning Indian photojournalist killed in Afghanistan    Handled Cargo at Saudi Ports Increases during June 2021    Saudi Arabia concludes participation in Cannes Film Festival as region's new filmmaking hub    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    Bollywood star Aamir and wife Kiran separate after 15 years    AWI Hosts Saudi Cinema Nights in Paris    Saudi Uner-20 Football National Team Beats Egyptian Counterpart to Qualify for Arab Youth Cup Championships' Final    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.



JLL: Jeddah real estate market sustains growth
Published in The Saudi Gazette on 06 - 08 - 2015

JEDDAH — All sectors of Jeddah real estate market sustained growth in the second quarter of 2015, JLL's “Q2 2015 Real Estate Market Overview” report revealed Wednesday.
JLL, the world's leading real estate investment and advisory firm, in its latest report that assesses the latest trends in the office, residential, retail and hotel sectors, said office and residential sectors are positioned for further rental growth during remainder of 2015.
Jamil Ghaznawi, National Director and Country Head of JLL KSA, said: “In the second quarter, the Jeddah real estate market remained in the upturn stage of its cycle.
The hotel and retail sectors appear closer to the peak than office and residential, where further rental growth may be experienced over the rest of the year.
The performance of the residential market remains mixed, with apartments seeing continued rental growth while villa rents have declined.
Given there was limited new supply of office space entering the market, occupancy and rental rates have remained healthy and are likely to continue to increase with limited levels of future supply. However we have seen retail rentals stagnate ahead of significant levels of new supply entering the market.”
He added: “With the new integrated action plan from the Ministry of Housing, we anticipate an easing of the current shortage of affordable homes and a subsequent boost to the prospects for economic growth.”
Office
Vacancies remain stable at around 6% of the total stock, which is 2% below the levels experienced in Q2 2014. Average rents for Grade A and B have increased by 6% annually and by 3% quarterly.
The supply of office space in Jeddah has been increasing at a consistent level of between 90,000 sq m – 120,000 sq m per annum over the past few years, mostly in small to medium sized developments. This trend looks likely to continue with relatively limited levels of future supply.
Residential
Around 12,000 residential units have been completed across Jeddah so far this year, with a similar level of new supply expected over the rest of 2015.
Citywide, villa prices have increased by an average of 4.5%, due mainly to prices increasing in the Western Districts which are characterized as ‘high-end' and are less affected by recent changes to the mortgage laws.
The apartment market has generally performed better than the villa sector, with sale prices and rents increasing by 11% and 14% respectively over the past year.
Retail
Rents remained relatively stable in Jeddah, with rents in super regional malls increasing by 2% and those in regional malls by less than 1% over the past year.
Vacancy rates have also been relatively stable, increasing marginally from 6.8% in Q1 to 7.2% in Q2. While limited additions are planned for the second half of 2015, there is a substantial amount of new supply expected in 2016 and 2017 which could increase the total supply of retail space in Jeddah by more than 35% over the next two years.
With significant levels of supply over the medium term, JLL expects competition to increase, negatively impacting the performance of dated shopping centers and those located away from the growth corridor of the city.
Hotel
Occupancies year-to-May stood at a healthy 75% (slightly lower than the same period last year). ADRs currently stand at USD 242, around 2% below year-to May 2014 data.
As a result RevPAR lost 3.4%. Overall Jeddah remains a very strong hospitality market with healthy occupancy levels and the third highest ADR in the region after Dubai and Riyadh, which indicates that the hospitality market in Jeddah is geared towards high end hotels.
While there is potential for an oversupply of up market hotels over the next two years, opportunities remain in mid-scale and budget sectors. Among the major openings during the next few months will be the Ritz Carlton and three serviced apartment properties by Ascot. — SG


Clic here to read the story from its source.