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JLL, the world's leading real estate investment and advisory firm, today released its third quarter (Q3 2015) Riyadh and Jeddah Real Estate Market Overview reports that asses the latest trends in the office, residential, retail and hotel sectors.
Mr Jamil Ghaznawi, National Director and Country Head of JLL KSA, commented: "The Riyadh real estate market has maintained a steady performance this quarter. The office sector shows signs of stability, attributable to continued demand for existing office space and further delays in the delivery of mega-projects King Abdullah Financial District (KAFD) and the IT and Communications Complex (ITCC). Demand remains strong within the residential sector, particularly as high end residential properties and community developments, such as the Rafal and Damac projects, continue to be active and on track for scheduled completion in 2016 and 2017. Additionally, sentiment in the retail market and demand for retail space among international retailers continues to strengthen, in light of the Saudi Arabian General Investment Authority's (SAGIA) decision to allow 100% foreign ownership of retail and wholesale businesses, as part of national plans to diversify the Kingdom's economy and attract investment."
Commenting on the Jeddah market, Mr. Ghaznawi added: "The real estate market in Jeddah shows continued growth momentum. The residential sector saw an increase in both apartment and villa rentals, as buying property remains a difficult option for middle income households. The Ministry of Housing, however, has plans to combat this shortage with the construction of around 15,000 additional units of affordable housing by 2017. The office market continues to perform well, as multiple office buildings entered the market during the past quarter. With a steady supply of office space entering the market during the last quarter of 2015 and early 2016, we expect vacancy rates to remain stable and lease rates to increase moderately. "
Sector summary highlights - Riyadh
This diagram illustrates where JLL estimates
each prime market is within its individual rental cycle at the end of the
*Hotel clock reflects the movement of RevPAR.
Jeddah prime rental clock
This diagram illustrates where JLL estimates each prime market is within its individual rental cycle at the end of the relevant quarter.
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