2017 represented a significant turning point for Saudi Arabia with the introduction of many social and economic reforms. 2018 is expected to be a year of implementation and many investors, entrepreneurs and businesses are exploring the new opportunities and areas of investment now available to them, says global real estate services firm JLL.

Reflecting on 2017, JLL’s 2017 Year in Review report shows that nearly 19,500 (mostly stand-alone units) were completed in Riyadh. It shows that the supply of rental properties serving senior executives, expatriates, and short-term visitors continues to grow in the capital, while the issue of affordability for mainstream residential units remains.

The number of Riyadh apartments transacted in 2017 increased by 12 percent compared to 2016, though prices decreased by 4 percent over the year. The report added that further decreases in rents is projected for the capital, following the introduction of the levy on expat dependents in mid-2017.

JLL also said that in Jeddah, residential supply increased by around 10,000 units in 2017. Residential sale prices and rents declined across the Jeddah market but JLL noted signs of stabilisation have begun, with the rate of decline slowing towards the end of the year.

While apartment rents remained relatively stable across Jeddah in Q4, they showed a 2.7 percent quarterly decrease in areas synonymous with expatriates.

"The tax levy on expatriates could be restricting demand for rentals, as expatriates repatriate family members to avoid the levy," JLL added.

The report also discusses the Red Sea Tourism Project, NEOM, Private Public Partnerships, Real Estate Investment Traded Funds and construction costs to evaluate what we can expect over the next 12 months and beyond.

To view the full report, register here.

For questions and inquiries about the Kingdom of Saudi Arabia real estate market, email Craig Plumb, JLL’s Head of Research MENA.

See also:

Saudi’s NEOM project “good for Dubai”

Four cities in the Middle East in top 30 City Destinations

JLL names Dubai as a Rising Giant of growth, and Riyadh and Jeddah as Emerging Hotspots