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Research

Report

Riyadh Real Estate Market Overview - Q1 2012


 

Q1 Highlights:

 

  • Riyadh has seen an increase in both sale prices and rental levels across all sectors of the residential market monitored by Jones Lang LaSalle. The average sale price for villas has increased to SAR 4,200 per sq m with apartment prices also higher at SAR 2,600 per sq m.

  • The take up of space in office projects due to complete later this year (eg: ITCC and Riyadh Business Gate) shows the continued demand for office space in Riyadh. This includes an 80,000 sq m pre-commitment to a large Saudi telecom provider in the ITCC project which represents one of the largest deals in the Riyadh market for some time.

  • The Riyadh retail market remains relatively well balanced, with no significant change in either occupancies or rental levels recorded so far this year. As with Jeddah, there is an increasing variation between the rents that can be achieved for line stores in the most popular centres  and the average rental value (around SAR 2,380 sq m) that has remained unchanged over the first quarter of the year.

  • No new hotels have been completed in Riyadh during the first quarter of 2011, with the market continuing to adjust to the input of 1,200 new rooms during 2011. Occupancy levels and room rates have declined over Q1 2012 but this position is expected to be short lived as government initiatives promote more visitors to the capital.

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