Jeddah real estate market continues to soften in Q3
October 26, 2018 - Saudi Arabia
Jeddah's real estate market softened further across most sectors in the third quarter of 2018, according to JLL’s latest market report.
The real estate consultancy said that despite continuing declines in rents and sales prices, ongoing investments in infrastructure and non-oil industries are expected to offset the subdued nature of the market in the long term.
There were no notable residential completions in Q3, JLL said, leaving the total supply relatively stable at 817,000 units.
It added that office rents dropped further during Q3 as vacancy rates continued to increase with the new supply.
New transport infrastructure developments in Jeddah are paving the way for a more connected city which could positively impact future office demand, the report noted.
This quarter, the Haramain High Speed Railway completed its first journey and will connect Jeddah, Makkah and Madinah.
“Although the market remained subdued in Q3, the enhanced infrastructure developments towards a more connected city are a step towards attracting increased investment opportunities. The new King Abdul-Aziz International Airport will inaugurate operations in mid-2019, and this completion has the potential to uplift the real estate market performance in Jeddah,” said Dana Salbak, associate, JLL MENA.
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Photo : Dany Eid
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