The Kingdom is now in the implementation phase of the Saudi Vision 2030, which aims to diversify the economy from oil dependency, by increasingly investing into tourism and other sectors. 

The announcement of the Jeddah Opera House and the subsequent development of cinemas and cultural centres, will improve the sentiment across all categories of the real estate market and introduce further investment opportunities for international and local companies looking to move into new sectors. 

Also in Jeddah, the planned Obhur Bridge over Obhur Creek will likely affect the real estate market, says JLL. Future communities located north of Obhur Creek will benefit from the proposed 2-kilometre bridge, reducing travel distance between the two sides of the creek by 15 kilometres. This will significantly reduce travel time to major hubs and business centres, making the northern suburbs a more desirable location to live. While no specific completion date for the project has been announced, the Ministry of Transportation invited tenders from the private sector in April.

In terms of supply, there were several notable completions in Jeddah during Q2 2018, including two community style properties; Diyar Al Salam Residences by Lifestyle Developers, and J One apartments by Abdul Latif Jameel Land (ALJL’s first residential development). Abraj Al Hilal 2, the second residential project within Jeddah Gate also began handover in Q2 2018. The completion of other small stand-alone villas and apartment buildings brings the total supply of residential units in Q2 to 817,000, with a further 4,000 units expected over the second half of the year, according to JLL.

Jeddah's property supply has had several notable completions during Q2 2018. Image credit: JLL

Other significant additions to Jeddah’s skyline this year include Bayat Plaza Towers and Golden Tower, which are scheduled to handover in Q3 2018. A further residential development nearing completion along the Corniche is the mid-rise Al Tawheed Tower. Other notable projects further down the supply pipeline include Manazel Al Safa apartments and Al Makarona Community, which are expected to be completed in 2019. 

The JLL report also details Jeddah residential rent and sales performance, as well as retail, office and hotel performance. To view the full report, visit the JLL website.

For further information, email Craig Plumb- Head of Research- JLL MENA via the contact details below.

Source: JLL

See also:

Growth of private debt to boost Middle East real estate market, JLL reports

Saudi developer collaborates with Roberto Cavalli to launch next phase of $2.7bn project in Riyadh

Shuaa and Jabal Omar to develop and manage real estate investment funds in Saudi Arabia