Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Saudi - Resource constraints hinder project delivery despite continued demand  Join our daily free Newsletter

MENAFN - Arab News - 10/12/2013
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab News) Jones Lang LaSalle, a major global real estate investment and advisory firm, has released its Q3 2013 Market Overviews of the Riyadh and Jeddah real estate markets that assess the latest trends in the office, residential, retail and hotel sectors of the market in Saudi Arabia's two largest cities.
Commenting on the reports, Alan Robertson, CEO of Jones Lang LaSalle in MENA, said: "Real GDP growth is forecast to be 4 percent in Saudi Arabia for 2013, and Saudi banks are increasing their lending to real estate end-users to the highest level recorded during the last five years. While major new capital projects are driving strong demand across the office, retail and hotel sectors in Riyadh and Jeddah, labor shortages will likely delay projects and increase construction costs."

Riyadh
The Arriyadh Development Authority (ADA) announced further details of the proposed Riyadh Metro, which will consist of 6 lines with 96 stations and a total length of 176 km. Construction is scheduled to commence in Q1, 2014, with the first phase of the project opening in Q4, 2016. A total of SR3 billion has been allocated to acquire additional land, although the acquisition of land will be kept to a minimum.
The average quoted office rents for completed Grade A & B buildings has declined marginally to SR1,059 per sq m pa at the end of Q3, due to higher vacancies within B grade buildings in the CBD and to the South of Riyadh. Demand for office space remains strong, with considerable take up over the past six months. However, the combination of vacant space in new buildings and space being marketed in buildings currently under construction is providing tenants with wider choice and is resulting in more competition between owners to attract new tenants.
In the residential market, apartment and villa rents are expected to increase further in 2013. The average purchase price of apartments has decreased by 10 percent to SR2,534 per sq m over the past six months (excluding branded apartments), reflecting the fact that most apartments available for sale are located in the low income areas of Zahahrat Laban and Araija in the west, and Shifa, Badr and Suwaidi in the south. Average villa prices have increased by 4 percent compared to the same quarter last year to SR4,274 per sq m. Of the total future supply for the residential sector, some 6,000 units are expected to be delivered in expatriate residential compounds.
Average retail rents have increased slightly in super regional malls, while remaining largely unchanged in regional and community malls during Q3, 2013. Total mall-based retail supply is expected to reach around 1.7 million sq m by the end of 2016, with supply of retail malls expected to increase substantially. JLL anticipates limited rent increases in regional and community shopping malls given the availability of space and continued downward pressure on rentals in poorer performing malls.
The hotel market is showing signs of stability, following a period of declining performance as arrivals failed to keep pace with the significant increase in supply recorded in 2011 and 2012. There is a significant completions forecast for hotels rooms in 2014 and beyond, including the Hyatt Regency and Fairmont Business Gate.

Jeddah
Average office rents for both Grade A and B office space have increased significantly over the past six months. Vacancy levels decreased from 12 percent last quarter to 10 percent in Q3, reflecting the healthy demand from the government and private sectors.
In the residential market, the average asking price for apartments has decreased over Q2 and Q3 to SR3,800 per sq m. The average sale price of villas in locations monitored by JLL has decreased by 4 percent to SR4,400 per sq m over the past six months, driven by falling prices in the prime western districts of Jeddah. Limited availability of villas for rent has contributed to the growth in rentals.
The retail market rents remain consistent with Q3, 2012. Average rental for line stores in major malls is expected to remain stable, although the market may become more fragmented with not all centers able to maintain current rental levels. No further additions to retail supply are expected in 2013. Many retailers are planning expansions and opening new outlets and new brands continue to enter Jeddah's retail market.
Jeddah continues to be one of the best performing hotel markets in the Middle East in terms of occupancy during 2013. While occupancy levels have been increasing since 2010, they are now stabilizing, with Q3 2013 recording a slightly lower occupancy level of 78 percent compared to Q3 2012 (81 percent). Jeddah's continued strong performance is a reflection of both continued demand from religious pilgrims and its popularity as a leisure destination among Saudi families.

 


Arab News




  MENA News Headlines
 May 24 2015 - Kuwait- Min. of Amiri Diwan receives KISR delegationKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) Minister of Amiri Diwan Affairs Sheikh Nasser Sabah Al-Ahmad Al-Sabah received a delegation of the Kuwait Institute for Scientific Research (KISR) including Dr. ...

 May 24 2015 - Kuwait- His Highness Crown Prince receives top officialsKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) His Highness the Crown Prince Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah received on Sunday at Bayan Palace His Highness the Prime Minister Sheikh Jaber Al-Mubarak ...

 May 24 2015 - GCC-EU ministerial meeting held amidst critical developments - Qatari FMKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) Qatari Foreign Minister Khaled Al-Attiyah said GCC-EU ministerial meeting, in Doha on Sunday, was held amidst critical regional and international developments, ...

 May 24 2015 - Kuwait- Info Min. stresses important role of FANA amid current circumstancesKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) Minister of Information and Minister of State for Youth Affairs Sheikh Salman Sabah Salem Al-Humoud Al-Sabah on sunday underlined the important role of the ...

 May 24 2015 - Arab army chiefs resume meetingKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) The chiefs of staff of Arab armed forces resumed their meeting here Monday under chairmanship of the Chief of Staff of Egyptian Armed Forces Lieutenant General ...

 May 24 2015 - Kuwait- His Highness Premier meets Iraq parliament speakerKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) His Highness the Prime Minister Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah held talks Sunday at Bayan Palace, with the visiting Iraqi Speaker of the Council of ...

 May 24 2015 - EU major partner for GCC - ZayaniKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) The European Union (EU) has been a key partner for the Gulf cooperation Council (GCC) since the six-member bloc was established in 1981, according to GCC ...

 May 24 2015 - Salmiya Sports Club Reign SupremeArab Times
(MENAFN - Arab Times) The Salmiya Sports Club won the Kuwait Karate Federation Junior category trophy for 2014/2015 Championships. The finals and awarding ceremony were held under the auspices of the ...

 May 24 2015 - Q8 Opens First CNG Service Station In BelgiumArab Times
(MENAFN - Arab Times) The international arm of Kuwait Petroleum, Q8, on Thursday took another big step and major milestone in strengthening and expanding its presence in Europe by opening its first ...

 May 24 2015 - Kuwait- Wataniya Telecom Dives 40 Fils NBK FlatArab Times
(MENAFN - Arab Times) Kuwait stocks headed south on Thursday to close the week on a sour note. The key index dropped 46.87 pts to 6332.27 points snapping the 2-day upswing. The banking shares were ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help