As per a report by JLL, the two Saudi cities are all set to get 14,000 new housing units in the last quarter of 2023
Saudi Arabia’s two major cities, Riyadh and Jeddah, will see the addition of 14,000 new residential units in the last quarter of 2023, JLL said in its Q3 2023 real estate market overview. The capital is expected to see 8,000 new dwellings entering the market, while 6,000 units will be added to Jeddah from October to December.
A total of 12,400 new residential units came into the market in the third quarter, taking the residential stock to 1.4 million and 875,000 units in Riyadh and Jeddah, respectively. The growing demand in Riyadh is driven by it becoming a regional business, driving prices and rents higher by 7% and 3%, respectively, in the third quarter of 2023 year-on-year (YoY).
Apartments continued to lead demand, with sale prices witnessing a 9% YoY growth in the third quarter. Rentals also increased by 6% YoY during this period. In parallel, Jeddah also recorded similar gains in its residential market. The average sale prices throughout Jeddah reported an annual rise of 7% YoY in Q3, with rents up by 5% YoY. However, JLL said that the escalating prices in the residential sector and rising borrowing costs have started to weigh on the affordability of units. The volume of transactions fell by 2% and 25% YoY in Riyadh and Jeddah respectively according to the data for January to August 2023 released by the Kingdom’s Real Estate General Authority.
