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Even with thousands of new apartment complexes constructed in Riyadh and Jeddah within the first six months of 2024, property prices and renting rates have remained escalating in Saudi Arabia. As per JLL, a real estate consulting firm, there were 27,500 newly introduced units just between January and June this year across these two significant cities leaving them with approximately 1.5 million residential stocks in Riyadh and an estimated 891,000 housing units in Jeddah.
This surge in availability has led to an increase of 10% per year for house selling prices and close by there are 9% climbed rents in Riyadh. Sales prices have similarly increased in Jeddah with a 5% growth while rental prices rose by 4%.
Both cities are expecting to have an extra 16,000 units delivered by year-end. However, residential housing projects have been overshadowed through increased competition for available land, restrictions within the area, fluctuating international financial status and raising freight charges.
Riyadh’s office space supply also grew, with 52,000 square meters added in the first half of the year, bringing the total amount to 5.2 million square meters. In the second part of the year, another 249,000 square meters of office spaces are expected to be delivered in Riyadh, while 48,000 square meters are supposed to be added in Jeddah with no new office space being provided in the first half of 2024.
