"GLL": 11% rise in real estate prices in Riyadh and Jeddah in the third quarter

The Regional Director of JLL in Saudi Arabia, Saud Sulaimani, said that real estate prices in the cities of Riyadh and Jeddah increased in the third quarter of this year, on an annual basis, by 11% for sale, and by 9% for rent, with a slight decrease of 2% in residential real estate transactions.

Al-Sulaimani added in announcements on Wednesday, that the price increase is due to the lack of adequate demand for the beneficiaries, but with the recently announced projects, there will be stability in prices during the coming years, and also stability in terms of quality.

Significant increase in rents

He pointed to the significant increase in rents in the city of Jeddah, reaching 12% due to redevelopment projects, especially the rents of residential apartments where they increased more than the villas, while the prices of residential rents in Riyadh increased by 4% and apartments by 9%.

He pointed to the high demand in Riyadh and Jeddah for commercial and office real estate, under the program of moving corporate headquarters to Saudi Arabia.

Real estate market in Saudi Arabia

The "GLL" company stated in its latest report on the real estate market in Saudi Arabia, that the performance of the office space sector recovered during the third quarter of 2023 against the background of an increase in the number of inquiries and the volume of completed deals.

The report expected the office space sector to continue its strong performance, driven by factors including economic growth and high demand for high-quality space in addition to the government's focus on the regional headquarters program.

JLL pointed out that the residential real estate market in the cities of Riyadh and Jeddah witnessed remarkable growth during the third quarter, as more than 12,000 new residential units entered the market in the two cities, bringing the total number of residential units to 1.4 million units in Riyadh and 875,000 in Jeddah.