JLL’s Real Estate Market Overview has shown that continued efforts of introducing measures to increase tourism, pilgrimage, investment and local entertainment options. These initiatives have boded well with Jeddah real estate market and sentiment across some real estate sectors has been boosted, according to JLL’s Q3 marketplace report released today. Jeddah’s retail sector witnessed improved sentiment shown by an increase in construction activity following a subdued period.
“The Kingdom’s commitment to increasing tourism, pilgrimage, investment and local entertainment reflecting options across the retail sector, which has seen an upward growth in sales transactions in Jeddah during July,” said Eng. Ibrahim Albuloushi, National Director and Country Head, JLL, KSA.
“Reinstatement of benefits increased spending to public sector wages earlier this year, bolstering spending power during the summer holidays. We also believe this move will prove to be encouraging for retailers to expand, and take over more retail space,” he added.
The office sector will be another beneficiary of the government’s recent reforms. With a number of financial and advisory firms announcing expansions or plans to enter the market, expecting demand for office space to increase.
The residential market saw a completion in the lifestyle segment in Q3 and similar developments are in the pipeline. Looking ahead, residential communities and lifestyle developments are likely to make up a larger share of upcoming supply.
The hotel sector continues to remain competitive. Two completions coming into the market over the course of Q3, and expecting further completions by the end of the year. Hotel ADRs and occupancies continued to decline YT August despite the school holidays and increased number of pilgrims during the Hajj season.
For the full report, which includes detailed information on residential, office, hotel, and retail property, click here
Check also other 2017 Real Estate Market Overviews from the region: