In 2023, the Jeddah real estate market demonstrated notable shifts and trends across various sectors. Notably, the office sector experienced substantial growth, with Grade A office rents surging by 13.8% in Q1 and soaring by 14% year-on-year in Q2.
This upward trajectory continued into Q4, culminating in a remarkable 19.7% year-on-year increase in average rent for Grade A offices. Concurrently, Grade B office rents saw a more modest increase of 1.0% in Q1. The occupancy rates for Grade A and Grade B offices also exhibited healthy rises, reinforcing the sector’s robust performance throughout the year.
In the residential sector, despite a 35.8% decline in the total number of mortgage contracts, new loans predominantly favored houses, constituting 68.8% of the market share. Villas experienced a notable average price increase of 10.2%, while apartments witnessed a slight decrease of 0.7%.
The addition of approximately 4,000 residential units in Q2 and around 6,000 units in Q3 underscored the sector’s steady growth. Throughout the year, sale prices and rents in the residential industry exhibited resilience and continued upward.
The retail sector saw substantial growth, increasing retail space by around 102,300 sq. m. in Q2 and approximately 70,000 sq. m. in Q3. However, average rents for super regional malls experienced a notable decline, while regional malls witnessed marginal increases.
In parallel, the industrial and logistics segment witnessed the launch of Special Economic Zones, signaling a commitment to economic development. Despite this, average rents in Jeddah experienced a notable decline of 9.8%, reflecting some challenges within this segment.
The Jeddah MLS system has emerged as a game-changer in real estate. It offers a centralized platform for property listings that enhances visibility and accessibility for both buyers and sellers in the city. This innovative system has revolutionized property discovery, streamlining transactions and fostering a client-centric approach. With access to a comprehensive database, real estate agents can efficiently match clients with suitable properties, reducing the time and effort involved in the search process.
Market transparency has been greatly augmented by the Jeddah MLS, providing accurate and up-to-date property information that instills confidence among market participants and minimizes the risk of misinformation. Beyond catering to local stakeholders, the
Jeddah MLS extends the reach of Jeddah’s real estate market to a global audience, attracting foreign investors and facilitating cross-border transactions. By offering valuable data and insights, including market trends and historical analytics, the platform empowers real estate professionals and investors to make well-informed decisions.
Furthermore, the Jeddah MLS significantly influences property valuation by granting access to historical sales data, leading to more standardized and precise valuations. The Jeddah MLS stands at the forefront of transforming Jeddah’s real estate landscape, benefiting all stakeholders involved. Join us as we embark on this journey to unlock Jeddah’s vast real estate potential together.
