Jeddah: Benefitting from stimulus spending
Jones Lang LeSalle’s Jeddah City Profile June 2011
A report by commercial property consultants Jones Lang LeSalle, has concluded Saudia Arabia’s multi-billion dollar stimulus package is beginning to filter through to Jeddah’s property markets.
The report concludes:
The impact of massive government investment in infrastructure and the stimulus package, announced in February 2011, valued at almost US $126.7 billion, is starting to filter through to Jeddah’s real estate market.
The residential market has seen an increase in both rents and prices over the past six months, with the market moving further into the upturn stage of its market cycle. A further growth in prices and rents is expected over the remainder of 2011, as demand increases and supply levels remain constrained.
The office market continues to move in favour of tenants who are benefitting from lower rentals as a result of more competitive market conditions in the face of an increasing choice of space.
The retail market is witnessing new supply levels, which are increasing the choice available to tenants and requiring owners to undertake repositioning and tenant remixes. Rentals in the retail market are expected to remain relatively stable throughout 2011.
The hotel market has witnessed a growth in performance over the past six months, even though occupancies have fallen marginally. The long term prospects for Jeddah’s hotel sector remain positive, driven by increased investment in tourism, infrastructure and the development of the city’s leisure offer.
Chapters in the report include analysis of:
- Increasing land prices and affordable housing
- Economic and demographic overview
- The office market
- The residential market
- The retail market
- The hotel market
To download the full report click here: JLL_Jeddah City Profile_Q1 2011_en
