Gen Zs and millennials are striving for balance and advocating for change. 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. 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. See Terms of Use for more information. 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. DTTL (also referred to as Deloitte Global) does not provide services to clients. Meanwhile, transaction volumes and value slipped by 8% and 12% YoY respectively in Q2. 0000012350 00000 n Now Kids Are Getting It, Too, Russian Gas Pivot Toward China Will Ease Europes Energy Crunch. In Riyadh, average daily rates (ADR) and average occupancy levels declined by 3.3% and 18.4% YoY, respectively, in May. 0000003237 00000 n 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. For the latest headlines, follow our Google News channel online or via the app. Please see, Telecommunications, Media & Entertainment, Corporate Responsibility & Sustainability. endstream Residential Units to Be Complete by 2023-End. Argaam.com Copyright 2022, Argaam Investment, All Rights Reserved, {{getCommenterName(comment.ParentThreadID)}}. 0000002856 00000 n 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. As a result, market-wide revenue per available room (RevPAR) fell by 21% YoY over this period to SAR 254. In Jeddah, apartment prices jumped by 5.9% YoY over the same period, while villa prices declined by 2% YoY. Selling prices of apartments and villas in Riyadh increased by 7.6% and 4.7% YoY, respectively, in Q2 2021. As of yet, this includes eight mega-projects and new super cities. 0000000756 00000 n 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. NYC Wants In-Person Dining Back. 2022. In Riyadh, average regional and super-regional mall lease rates declined 1% YoY to SAR 2,670/sqm in Q2 2021. The survey is intended to identify the impact of COVID-19, and provide a periodic barometer of market sentiment to our clients and businesses. 0000001275 00000 n Around 58,000 residential transactions were recorded in Q2, compared to 47,000 deals during the same period last year. Abusive comments of any kind will be removed. Offer market and financial due diligence, operator selection, hotel/serviced apartment valuation and configuration of hospitality led development projects. uFw Change in Prices of Apartments, Villas in Q2 2021. Our thought leadership and Dow Jones news, now at your fingertips. 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. Average apartment prices in Dammam increased by 4.6% YoY in Q2 2021, while average villa prices fell by 4.1% YoY. 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. p DTTL and each of its member firms are legally separate and independent entities. In Dammam, total retail stock currently stands at about 1.2 million sqm. %PDF-1.7 % 80 0 obj 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. startxref 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. 0000022990 00000 n show you personalized advertising. Riyadh's office market continues to experience fragmented performance. %%EOF A collection of Butterfly Effect stories highlighting how our Deloitte professionals are positively impacting the lives of women and girls around the world. Sign up for our Middle East newsletter and follow us @middleeast fornews on the region. 0000028478 00000 n 0000002388 00000 n 78 0 obj Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". 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. We use cookies to improve your experience on our site and to Ask an AI, I Got a Crash Course in Rodent Control atD.C.s RatAcademy. 0000014998 00000 n 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. 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. Leadership perspectives from across the globe. 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. 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. 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. Residential properties in Riyadh, Saudi Arabia. 0000024462 00000 n 0000025362 00000 n Meanwhile, Grade B rents experienced a 1.1% decline YoY in Q2 2021. 79 0 obj 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. 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. The Evolution of Real Estate Valuation in the Kingdom of Saudi Arabia. Office Market Performance in Q2 2021 (mln sqm). 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. Please seeAbout Deloitteto learn more about our global network of member firms. 0000300698 00000 n endobj 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. endobj You consent to our cookies if you use this website, Sorry: the validity period has ended to comment on this news. The industrial markets too are expanding at an unprecedented rate as requirements outstrip demand in many locations, he added. Total number of homes sold surged by 77% YoY, while the total value of transactions grew by 34% YoY over the same period. 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. 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. Please enable JavaScript to view the site. 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. Clearly, the government is delivering on its pledge to improve access to world-class housing for all and is doing so in style.. 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. Our real estate specialists provide objective, robust and independent insight and advice to help clients in the avoidance and resolution of real estate disputes. 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. The market demand is expected to maintain uptrend as government-driven economic reforms spur renewed confidence and hasten business growth. 0 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. 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