Jeddah Property Buys Government Initiatives More Than Double, says CBRE

Affordable Housing Initiative in Saudi Arabia Boosts Demand for Jeddah Projects for Low- and Middle-Income People with May More Than Doubling in May Compared to Same Period of Previous Year world council CBRE company said Sunday in a large real estate report.

A total of 58,809 mortgage contracts worth 27 billion Saudi Riyals (26 billion dirhams) were signed during the first five months of the year, according to CBRE.

"We have seen a number of opportunities present themselves consistently across all badet clbades, with ongoing government investments paying dividends as the KSA real estate sector grows," he said. CBRE.

The UK Housing Ministry is implementing a number of affordable residential projects in several Kingdom cities as part of the Government's Vision 2030 to boost the real estate market, increasing the homeownership rate of its properties. Citizens by 60% by 2020 and 70 by 2030 by 2030 to meet growing demand.

In addition, the Jeddah hotel sector experienced high occupancy rates during the Eid and Jeddah season, a 41-day series of shows in the coastal city. Nearly 7,000 tourist visas were issued around the Jeddah season, with hotels in some areas, such as Al Hamra and Al Shate'e, reaching occupancy rates of 85% to 95% due to the increasing number of tourists.

The report also notes that Jeddah's hospitality sector is undergoing significant development, putting more emphasis on more affordable and mid-sized hotel developments, with an additional 18,000 keys expected in 2020 alone.

According to CBRE, the office market remained moderate, but leasing options were modified to stimulate demand.

There is also an upward trend in the demand for collaborative workspaces in which users can share services, equipment and technologies in a common space.

"In Saudi Arabia and Jeddah in particular, businesses are looking for flexible office space to meet the changing needs of their business. Coworking spaces are also a popular choice among local businesses and entrepreneurs looking for flexible office solutions, such as conference rooms and event spaces that can be rented at any time, day or night. the week. "

Servcorp, Vibes and White Space are some examples of collaborative space companies that are now capitalizing on this new demand as they enter the Jeddah market, the report says.

CBRE found that shopping centers depended on an expanding entertainment sector to boost consumer demand.

"Traditional store concepts are taking a back seat, with the focus being increasingly on developments offering a full range of facilities, new brands and store options and event scheduling unique in response to the changing demands of consumers. "

Mixed-use developments such as Jeddah Gate, Tahlia Park and Lilian Towers have also attracted investors as they gain popularity with businesses and visitors, looking for work-based and lifestyle-oriented activities.

"Saudi Arabia's determination to evolve its entertainment business is a key factor in driving exponential growth in a variety of industries," said Simon Townsend, head of strategic consulting at CBRE Menat (Middle East, South Africa). North, Turkey) and CEO of CBRE KSA. .