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%PDF-1.7 % 0000003613 00000 n By 2023, total hotel supply is due to increase by 27% YoY, or 4,800 rooms in Riyadh, and by 64% and 18% YoY to 20,600 and 13,800 rooms in Jeddah and Dammam, respectively. Learn how this new reality is coming together and what it will mean for you and your industry. 78 0 obj 0000002275 00000 n In the national office markets, headline rents were clearly impacted by the pandemic, but rates for the best offices in Riyadh have recovered to pre-pandemic levels and demand is growing rapidly. Assist with the provision of market due diligence, financial feasibility assessments, highest and best use analysis, investment strategies and advice for real estate developments and related infrastructure. Saudi Arabias Capital Markets Authority has approved Natixis Saudi Arabias request to change its business profile in the kingdom, allowing it to Saudi Arabia ranked among the first group of the highest pioneering and innovative countries in the areas of providing government services and Saudi Arabias Minister of Foreign Affairs Prince Faisal bin Farhan met Indias Prime Minister Narendra Modi during his official visit to New Delhi, Saudi Arabia is concerned over Irans lack of transparency in regards to its nuclear program, the Kingdoms Minister of Energy Prince Abdulaziz bin Congress calls on EU to designate Hezbollah in its entirety as a terrorist group, UKs Rishi Sunak and Liz Truss: An overview of the final two candidates for PM, UAE doctors hail EUs approval of monkeypox vaccine, urge caution, US approves new funds to help Lebanons ailing security agencies, Saudi Arabia, France issue joint statement following Crown Princes visit to Paris, Saudi Crown Prince, Macron to work to ease effects of Ukraine war: Statement, Khota: The Lighthouses of Aad - Episode 22. Please seeAbout Deloitteto learn more about our global network of member firms. 0000003237 00000 n 80 0 obj 78 23 <> Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (DTTL), its network of member firms, and their related entities. Clearly, the government is delivering on its pledge to improve access to world-class housing for all and is doing so in style.. Deloittes Middle East real estate industry group and its member firm practices are recognized for bringing together teams with diverse experience and knowledge to provide customized solutions for clients across the full spectrum of the real estate community. 0000030912 00000 n 0 By 2023, this figure is expected to reach 1.6 million sqm. 0000003272 00000 n In Jeddah, average regional and super-regional mall rents fell by 1.5% YoY to SAR 2,685/sqm, while community mall rents decreased by 2.8% YoY to SAR 1,740/sqm over the same period. 0000012350 00000 n 0000014998 00000 n In Dammam, total retail stock currently stands at about 1.2 million sqm. The momentum injected into the national property market is best reflected in the fact that at over 150,000, the number of residential mortgages issued in H1 2021 is more than 10-times the level registered in H1 2016, Head of Middle East Research at Knight Frank Faisal Durrani said. Saudi real estate market expanding at unprecedented rate, mortgages up 10-fold. See Terms of Use for more information. Residential sales volumes across Saudi Arabia surged by 26% year-on-year (YoY) in Q2 2021, with the total value of transactions increasing by 2% over the same period. <>>> endobj Political or religious commentary will not be tolerated. NYC Wants In-Person Dining Back. Please see, Telecommunications, Media & Entertainment, Corporate Responsibility & Sustainability. Knight Frank forecast nearly 700,000 sqm of retail space to be complete in Riyadh by 2023. Argaam Investment Company has updated the Privacy Policy of its services and digital platforms. hb```b``d`e`gf@ a6 daw1AgRd|DO,lZqK3f):.U7g6%ty For more information, please read our Privacy Policy, A picture taken on March 16, 2021, shows a view of the King Abdullah Financial District (KAFD) in the Saudi capital Riyadh. This is a key trend which will further support the realization of Vision 2030., Saudi Arabia ranked among top counties in providing govt services: GovTech report, UAE tops Arab world in future readiness: Index, Saudi Arabias Capital Markets Authority authorizes Natixis as underwriter, arranger. Rental performance in Dammam continued to soften, with Grade A and Grade B rents declining by 1.7% and 2.7% YoY, respectively, in the same period. Change in Prices of Apartments, Villas in Q2 2021. Total number of homes sold surged by 77% YoY, while the total value of transactions grew by 34% YoY over the same period. Abusive comments of any kind will be removed. Residential properties in Riyadh, Saudi Arabia. A collection of Butterfly Effect stories highlighting how our Deloitte professionals are positively impacting the lives of women and girls around the world. Office Market Performance in Q2 2021 (mln sqm). (Reuters). DTTL (also referred to as Deloitte Global) does not provide services to clients. Offer market and financial due diligence, operator selection, hotel/serviced apartment valuation and configuration of hospitality led development projects. The agency has been tracking close to $1 trillion worth of real estate and infrastructure projects that were announced as part of the Kingdoms National Transformation Plan. 0000000016 00000 n Riyadh's office market continues to experience fragmented performance. endobj Average Grade A rents edged up by 1.5% YoY in the second quarter of this year. Residential Units to Be Complete by 2023-End. We are beginning to see increased appetite from private sector real estate developers in the form of public-private-partnership initiatives with large scale government led projects. You consent to our cookies if you use this website, Sorry: the validity period has ended to comment on this news. The relative outperformance of Grade A offices can be attributed to a marked increase in the number of licenses granted to foreign investors wishing to set up businesses in the Kingdom. Total hotel supply stood at about 17,700 rooms in Riyadh, 11,820 rooms in Dammam, and 13,230 rooms in Jeddah by May-end. Conducts valuation of commercial offices, retail, residential, industrial and hospitality assets in accordance with the Royal Institution of Chartered Surveyors Valuation Professional Standards, incorporating International Valuation Standards, as well as applicable local standards. DTTL and each of its member firms are legally separate and independent entities. Gen Zs and millennials are striving for balance and advocating for change. Apartment prices in Saudi Arabia increased at the fastest pace in five years, spurred by a government plan to boost home ownership by building affordable housing and offering cheap loans. <]/Prev 553862>> <. 0000024784 00000 n Efforts by the Saudi government to reshape the economic landscape of the country are underway and have been driving a sharp upturn in business activity, a statement released by the firm said, with figures showing that the first quarter of 2021 saw the highest-ever number of new foreign business investment licenses being issued. Next Big Risk asks three titans of the financial industry what they see coming in the next 5 to 10 years. Further, retail stock is expected to rise by almost 30% YoY to 2.7 million sqm in Jeddah. uFw Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". Argaam.com Copyright 2022, Argaam Investment, All Rights Reserved, {{getCommenterName(comment.ParentThreadID)}}. 0000001424 00000 n Monkeypox Outbreak May Boost the Shares of These Companies, Telecom Italias Head of Network Is Said to Plan on Resigning, Bidens Covid Rebound Case Keeps Him at the White House Again, Boris and Carrie Johnson Host Wedding Party at Tory Donor's Cotswolds Estate, Crypto Newbies Have Family and Friends to Thank for Losses, Asia Has New Richest Woman as Property Crisis Reshapes Fortunes, Trumps Pro Golf Event Is a Mixed Bag of Big Money and Few Fans, Liverpool Beats Manchester United to WinCommunity Shield, Putin, Nukes andKeeping theWest Strong for Ukraine, Trump and His Allies Are In Control of the GOP, Giant Sequoias Are Built to Withstand Fire, But Not These Fires, The Indian Governments Fight Against Fake NewsTargets Political Dissent, Jazzercise Is Alive and Kicking Decades After It Got Started, US Banks Passed the Latest Stress Test, But Are Still Unhappy, Belfast Pride Returns to City Streets for First Time in Three Years, Florida Tells Schools to Disregard Bidens LGBTQ Protections, UAW Head Says Battery-Worker Pay Must Match Assembly Wages, Wildfires in West Explode in Size Amid Hot, Windy Conditions, Report: 7 Iraqi Tourists Killed By Floods in Northeast Iran, Think Your Street Needs a Redesign? 79 0 obj This publication explores recent developments in the mortgage registration guidelines, incentives for home loan companies and applicants, as well as government measures designed to shape the new phase of development in the Saudi mortgage market. For the latest headlines, follow our Google News channel online or via the app. DTTL (also referred to as Deloitte Global) does not provide services to clients. Opinions expressed in the comments section do not reflect the views of Argaam. endobj 0000028478 00000 n 0000028065 00000 n Over the next 12 months, we expect the office market in Dammam to remain under pressure. 0000002388 00000 n In Riyadh, average daily rates (ADR) and average occupancy levels declined by 3.3% and 18.4% YoY, respectively, in May. Meanwhile, Grade B rents experienced a 1.1% decline YoY in Q2 2021. To continue browsing, 0000000756 00000 n endstream 0000025156 00000 n Jeddah's housing stock is expected to grow by 35,000 units, while 20,000 residential units will be added in Dammam by the end of 2023. 0000300698 00000 n p This figure accounts for only a third of the total $3.2 trillion of spending that is planned. We use cookies to improve your experience on our site and to Join us for a celebration of 175 years of making an impact that matters. The kingdom is aiming tolift home ownership to 70% in 2030. Selling prices of apartments and villas in Riyadh increased by 7.6% and 4.7% YoY, respectively, in Q2 2021. {()-EUt b@q%F55L&0mcu A06 5K+016p`pt`k`(aM`t`8 7{ While the Kingdom celebrates its 91st National Day this year, it also marks the fifth anniversary of the Vision 2030 transformation program. As a result, market-wide revenue per available room (RevPAR) fell by 21% YoY over this period to SAR 254. The global property consultants firm expected 100,000 homes to be ready in Riyadh by the end of 2023, taking the total housing stock in the capital to 1.4 million units. 0000001275 00000 n Total office space is expected to reach 5.3 million square meter (sqm) by the end of 2023. xref Meanwhile, transaction volumes and value slipped by 8% and 12% YoY respectively in Q2. 0000024462 00000 n Our real estate specialists provide objective, robust and independent insight and advice to help clients in the avoidance and resolution of real estate disputes. The survey is intended to identify the impact of COVID-19, and provide a periodic barometer of market sentiment to our clients and businesses. In Jeddah, occupancy rates increased to 21%, while RevPAR grew by a substantive 60% to SAR 352. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (DTTL), its network of member firms, and their related entities. Argaam uses cookies to personalize content, to provide social media features and analyze traffic, that we might also share with third parties. As of yet, this includes eight mega-projects and new super cities. show you personalized advertising. FDICs Message to Crypto Investors: Digital Assets Arent Insured, Troubled Crypto Lender Babel Lost Big While Trading Client Funds. Average apartment prices in Dammam increased by 4.6% YoY in Q2 2021, while average villa prices fell by 4.1% YoY. Grade B rents declined by 1.6% over the same period. Will Restaurant Week Be the Ticket? After applying for a job in this country, you can access/update your candidate profile at any time. Saudi Arabias real estate market experienced exponential growth with residential mortgages up ten-fold in H1 2021 compared to its corresponding financial period in 2016, according to estate consultant firm Knight Frank. Sign up for our Middle East newsletter and follow us @middleeast fornews on the region. The Evolution of Real Estate Valuation in the Kingdom of Saudi Arabia. uldzYyoXvRVs}3^](I)4,-`"A trailer The market demand is expected to maintain uptrend as government-driven economic reforms spur renewed confidence and hasten business growth. (AFP), General view in Riyadh, Saudi Arabia, June 21 2020. Ask an AI, I Got a Crash Course in Rodent Control atD.C.s RatAcademy. 2022. The industrial markets too are expanding at an unprecedented rate as requirements outstrip demand in many locations, he added. Know more about our Privacy Policy here. Bloomberg's Sonali Basak speaks with Founder and CEO of FTX Sam Bankman-Fried, former Goldman Sachs Chief Investment Strategist Abby Joseph Cohen, founder of Moelis and Company Ken Moelis about their biggest concerns, ranging from the next pandemic to deglobalization. Hosted by Quicktake chief correspondent Jason Kelly, we learn how a leaders background, personality and problem-solving approach influenced the course of a major event. Meanwhile, average occupancy in Dammam remained relatively stable at 50%, while ADR grew YoY by 8.3%. ?L0ae`bpn`P4}w @!Es;fq}x@ttb_P 61 Leadership perspectives from across the globe. To help identify the impact of COVID-19 on office space usage in the Middle East, Deloitte captures sentiment from companies in relation to the evolving nature of their bricks and mortar requirements, work from home (WFH) experience and policies during the current COVID-19 pandemic. Now Kids Are Getting It, Too, Russian Gas Pivot Toward China Will Ease Europes Energy Crunch. Around 58,000 residential transactions were recorded in Q2, compared to 47,000 deals during the same period last year. In Riyadh, average regional and super-regional mall lease rates declined 1% YoY to SAR 2,670/sqm in Q2 2021. Residential transactions, in terms of volume and value, rose by 44% and 13% YoY, respectively, in the second quarter, driven by a notable increase in the uptake of mortgages provided by banks and financial institutions. This survey report is the first in its series and is based on data drawn from an online survey of sector professionals across the region. 0000025362 00000 n please click OK, I Accept. startxref <>stream The government's continued efforts to expand the mortgage market, combined with the delivery of large affordable housing schemes through the Sakani program, fostered a remarkably resilient residential landscape. Community malls also saw rents softening by 1.5% YoY to SAR 1,950/sqm. In the long term, however, demand for office space is seen picking up as economic reforms drive job creation rates and inward investment, spurring office space demand. In Jeddah, apartment prices jumped by 5.9% YoY over the same period, while villa prices declined by 2% YoY. 0000028847 00000 n Jeddah's office market performance remained relatively subdued in Q2 2021, with Grade A rents falling marginally by 0.8%. Our thought leadership and Dow Jones news, now at your fingertips. 0000002856 00000 n Rents and occupancy rates are likely to soften further as supply outstrips demand, according to Knight Frank. 100 0 obj 0000022990 00000 n The Crypto Collapse Has Flooded the Market With Rolex and Patek, Shock July Stock Rally Was a Monster the Fed May Regret Seeing, Chinese Space Rocket DebrisCrashes Back to Earth Over Ocean, Monkeypox is Spreading Fast. Performance across Saudi Arabias various real estate asset classesremainedmixed in the second quarter of 2021, with the residential market continuing to outperform, Knight Frank said in its latest quarterly Saudi Arabia Real Estate Market Review. Please enable JavaScript to view the site. 0000003383 00000 n DTTL and each of its member firms are legally separate and independent entities. %%EOF The peak in residential mortgages seems to correlate with demand for real estate advisory services this year, exceeding pre-pandemic levels seen in 2018 and 2019, said Harmen de Jong, Partner, Real Estate Strategy and Consulting at Knight Frank Saudi Arabia.

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