JLL: Jeddah - Benefitting From Stimulus Spending
Download Now
Latest News
The road to home finance has been a long one for the Kingdom, but with its highly anticipated mortgage law edging ever closer to ratification, would-be homeowners and financial institutions are gearing up for a new era of opportunity.
With the announcement this year of a US$66.7 billion initiative to address the demand-supply imbalance in the Kingdom’s housing market, social infrastructure spend is topping the Government agenda as it focuses on building affordable homes for the future.
The South-East Asian island has seen a number of distinctive developments come to fruition over the past few years as the country further establishes itself.
The impact of massive government investment in infrastructure and the recent SAR 500 billion stimulus package are starting to filter through into the Jeddah real estate market.
The residential market has seen an increase in both rents and prices over the past six months, with the market moving further into the upturn stage of its market cycle. A further growth in prices and rents is expected over the remainder of 2011 as demand increases and supply levels remain constrained.
The office market contimues to move in favour of tenants who are benefitting from lower rentals as a result of more competitive market conditions in the face of increasing choice of space.
The retail market is witnessing new supply levels which are increasing the choice available to tenants and requiring owners to undertake repositioning and tenant remixes. Rentals in the retail market are expected to remain relatively stable throughout 2011.
The hotel market has witnessed a growth in performance over the past six months, even though occupancies have fallen marginally. The long-term prospects for the Jeddah hotel sector remain positive, driven by increased investment in tourism infrastructure and the development of the city's leisure offer.
Download Now
Your Comments
You must be logged in to add comments.