The majority of the growth is concentrated in the upper-mid to high–end segments of the market which has contributed to the high sales prices that are being achieved in a number of recent projects.

The new residential supply is mostly concentrated in east Jeddah along the Al-Haramain Expressway within districts such as Manar, Al Marwa and Al Safa. Most of the new supply is in the form of multi-family dwellings rather than single-family dwellings. This shift from single family dwellings can be attributed to sharp increases (20%-30%) in land prices experienced over the past year and the impact this will have on the affordability of the product.

The way in which Jeddah developed over the years, the infrastructure in the older parts of the city, such as the Corniche, Al Balad etc. is no longer up to current standards of development. For this reason, namely the improved and better infrastructure, most of the city’s upper-mid and high-end housing supply can be found in north Jeddah.

The residential sector in Jeddah has nevertheless been a challenge to the Jeddah Municipality and the Jeddah Development and Urban Regeneration Company (JDURC). Approximately one-third of the city’s population is currently housed in informal settlements and the municipality wishes to re-house these people in decent but affordable accommodation. The aim is to create additional housing through the regeneration of central districts of Jeddah such as Al Ruwais, Al Balad and Qasr Khozam. This will revive and modernise these areas whilst preserving a wealth of historical buildings and structures. As the regeneration programs proceed, residents of informal settlements are to be re-housed in these mixed use neighbourhoods.

All Comments (0)