Grants provided to airport management comply with 2005 Aviation Regulations, Commission confirms.
Jeddah, the commercial capital of Saudi Arabia, is set to witness significant growth in its real estate sector over the coming years, as the city benefits from the nation's tourism push and Vision 2030 initiatives.
In the Jeddah real estate market, price trends show a mixed picture. While apartment prices have seen a decline, villa prices have risen, with North Jeddah leading with 7-9% growth due to new waterfront developments, and Al Shatea seeing 8-10% increases driven by coastal premium properties. Major developments such as Jeddah Central, a $12+ billion investment, and the MARAFY project, which will introduce unique waterway living, are set to transform the city, accommodating over 130,000 residents by 2027.
Al-Salamah district offers high rental yields of 11.7%, making it an attractive option for affluent buyers and investors. Jeddah Central, upon completion, is expected to bring luxury living standards and international amenities to the city.
Comparatively, Riyadh has seen stronger overall price growth, with increases across both apartments and villas. Neighbourhoods like North Riyadh, Al Nakheel, and Al Sahafa have shown significant growth due to infrastructure and financial district proximity. Riyadh continues to solidify its position as a prime business hub, attracting significant foreign investment.
Dammam's growth is influenced by its location within the Dammam Metropolitan Area (DMA), which has seen a notable increase in residential transactions. Al Khobar in the Eastern Province commands a premium due to its coastal lifestyle and proximity to Bahrain, but Dammam's pricing is generally lower than Al Khobar.
The entire Saudi real estate sector, including Jeddah, Riyadh, and Dammam, is expected to benefit from Vision 2030's strategic initiatives, focusing on sustainable and smart developments, affordable housing, and mixed-use properties. Continued infrastructure investments and expanding international trade are expected to drive growth across these cities.
The hotel sector in Jeddah is expected to see a significant increase in hotel room supply and occupancy rates due to the tourism objectives of Vision 2030. The office market in Jeddah is expected to expand moderately due to the diversification of the economy and new private companies establishing themselves in the city.
However, over-supply in certain sectors such as retail and office is a risk, as there's a possibility that tens of thousands of new apartments or malls could flood the market in a short time, stagnating or decreasing rental rates and sales prices for mid-range apartments or retail space.
The demand for housing in Jeddah is expected to remain robust until 2030, driven by population growth and the continuous effort to increase the homeownership rate among Saudis. Undervalued segments in Jeddah's market may still be undervalued compared to the region, such as seaside properties in Jeddah being cheaper than those in Dubai or even Riyadh.
In conclusion, Jeddah's real estate market presents a promising outlook, with opportunities for growth in various sectors. As the city continues to develop and modernise, it is poised to attract both local and foreign investors seeking profitable investment opportunities.
- The real-estate market in Jeddah offers lucrative investment opportunities, with districts like Al-Salamah boasting high rental yields of 11.7% for affluent buyers and investors.
- Vision 2030's initiatives are set to transform Jeddah's real-estate sector, with major projects like Jeddah Central introducing luxury living standards and international amenities, anticipated to boost the city's real-estate finance industry.
- Despite the risk of over-supply in certain sectors, the overall demand for housing in Jeddah remains robust, making it an attractive destination for business and real-estate investing.
