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Demand for housing is way outstripping provide within the major Saudi cities of Riyadh and Jeddah, in keeping with a report for Q1 of 2013 launched by actual estate and advisory firm Jones Lang LaSalle (JLL). The Jeddah workplace area market continues to see strong demand from each authorities and personal sector tenants and this has resulted in a reduction فيلا للبيع في جدة in vacancy levels over the quarter from 16 percent on the finish of 2012 to only 12 percent at the end of Q1. Rents have remained comparatively stable across the market and are unlikely to extend throughout the remainder of 2013, given the numerous ranges of potential new supply.

In the meantime, the Shura Council is reported to be considering alternative strategies for encouraging housing improvement, corresponding to taxes on unused land. Following a 12 percent decline in 2012, there has been just about no change in income per accessible room levels of (USD 173) in Q1 of 2013. Occupancy ranges at the moment are stabilising with Q1 of 2013 recording the same occupancy stage as in Q1 of 2012 at 78 p.c.

JLL expects that increased vacancy rates and the larger alternative out there to tenants will preserve downward strain on rental levels during 2013, particularly for Grade `B' properties.” The residential sector has skilled increasing average rents and costs for both flats and villas in Riyadh. Land costs in peripheral areas have continued to extend, though we understand much less speculative pressure than final 12 months,' mentioned JLL. Occupancy rates were unchanged in Q1 of 2013 over the identical period of 2012, at 63 %.

Villas remain the strongest performing sector of the Jeddah residential market, recording increases in both rents and sale costs during Q1 of 2013. There have been no main adjustments in the Jeddah retail market throughout Q1. Common rents remained stable with a marginal enhance in super-regional malls being offset by an analogous marginal decline in rents for community malls. JLL does not expect any important change in rental ranges in Jeddah over the rest of 2013,” said the report. Jeddah remained among the best performing resort markets within the Center East in 2012.

JLL expects that elevated emptiness rates and the greater choice obtainable to tenants will keep downward pressure on rental ranges during 2013, especially for Grade `B' properties.” The residential sector has skilled rising average rents and prices for both flats and villas in Riyadh. Land prices in peripheral areas have continued to extend, although we perceive much less speculative pressure than last 12 months,' said JLL. Occupancy rates have been unchanged in Q1 of 2013 over the identical period of 2012, at 63 p.c.