Saudi Arabia’s Residential Market Booms with Riyadh Leading the Charge
In a new report, it has been revealed that Saudi Arabia’s residential market is experiencing a surge in demand, with Riyadh witnessing an impressive 77 percent year-on-year increase in sales transactions in the first quarter. Jeddah also saw a significant uptick of 92.9 percent, while Dammam experienced a 28.0 percent increase in residential transactions.
Expert Insights from Taimur Khan, Head of Research MENA
Taimur Khan, the head of research MENA, commented on the robust performance of the residential sector, stating that the demand is outpacing supply. He predicts that this trend will continue as new stock is delivered, with quality assets likely to command record rates.
Price Trends in Villa and Apartment Segments
Villa prices in Riyadh, Jeddah, and Khobar saw increases, while Dammam experienced a slight decline. In the apartment segment, prices rose in Riyadh, Dammam, and Khobar, but Jeddah saw a decrease in average apartment prices.
Rental Growth in the Office Sector
The office sector witnessed a slowdown in rental growth across all market segments in the first quarter. Prime rents in Riyadh surged, while Grade A and Grade B rents also saw increases. Dammam and Khobar also experienced growth in Grade A rents.
Occupancy Rates in Major Cities
Occupancy rates in Riyadh, Dammam, and Jeddah varied across different market segments, with Grade A and Grade B segments showing different trends. Riyadh had high occupancy rates, while Dammam and Khobar displayed slightly lower rates.
Strong Performance in the Hospitality Sector
The hospitality sector remained strong in the first quarter, with high visitation levels driving an increase in the average occupancy rate and revenue per available room. The country saw an 11.8 percent increase in average daily rate during this period.