Search SaudiArabiaPR.com

Home >> Government, Legal & Humanity

Saudi Arabia's National Industrial Program, Quality of Life Program 2020 and increased market transparency are set to boost Riyadh's real estate market in the long term

Saudi Arabia's National Industrial Program, Quality of Life Program 2020 and increased market transparency are set to boost Riyadh's real estate market in the long term

Tuesday, April 23, 2019/ Editor -  

Share

Home >> Government, Legal & Humanity

KSA, Riyadh - 23 April 2019:  The ongoing mega-project announcements and improvements to government regulations are expected to boost demand for, and enhance the long term performance of Riyadh’s real estate sector, highlights JLL’s Q1 market overview. Reforms focused on increasing transparency, enhancing the logistics sector and improving the overall quality of living for Riyadh’s citizens are expected to accelerate the implementation of Vision 2030.

Earlier in the year, the government announced a project of SAR 86 billion (USD 23 billion) to revamp public spaces in Riyadh, aiming to improve the quality of life for the city’s residents. The King Salman Park will promote urban development with green spaces and will include recreational areas for the benefit of the communities and citizens in Riyadh. Along with government initiatives to boost home ownership, this is expected to promote demand for residential units in the long-run. 

In addition, the Ministry of Housing launched a rental price index aimed at enhancing market regulation and providing more transparency. This is expected to reflect positively on the housing sector as it could lead to an increase in the volume of transactions.

'With market conditions continuing to soften in the first quarter of this year, large scale announcements aimed at stimulating economic growth are expected to boost sentiment and translate to increased demand for the capital’s real estate. Regulations such as introducing a rental price index are also a market stimulant, as they are expected to improve transparency in the residential sector, which could lead to larger transaction volumes,” commented Dana Salbak, Associate, JLL MENA.

The Kingdom’s National Industrial Development and Logistics Program (NIDLP), which aims to attract SAR 1.6 trillion of foreign investment by 2030 into various industries, is also expected to bode well for the commercial sector. 

In Q1 demand for office space remained limited but is expected to rise in the long term as government initiatives encourage private sector participation in the economy. There is a particular focus on SME's, which will boost demand for smaller, flexible office usage. 

In the hotel sector, it is expected that the growing demand for domestic tourism and the Kingdom's continuous efforts to enhance the supporting infrastructure will positively reflect on Riyadh’s hotel performance.  In Q1 the revenue per available room in Riyadh was the highest in comparison to other cities in the Kingdom, although the ADR’s in general have witnessed a significant decline. 

With a strong pipeline in supply, the retail sector witnessed developers diversifying their offerings by introducing increased entertainment outlets, local fashion and home grown F&B outlets. The overall rise in e-commerce across the region will see these developers offering digital experiences to customers through mobile browsing, online shopping and social media. 

 According to the Kingdom’s Communications and Information Technology Commission (CITC) data, the percentage of internet users interested in online shopping in 2018 increased to 50%, compared with 48% in 2017 and 37% in 2016, benefiting the sector in the long term as more retailers are expected to adopt  e-commerce models.


Previous in Government, Legal & Humanity

Next in Government, Legal & Humanity


Home >> Government, Legal & Humanity Section

Latest Press Release

New research to boost global date fruit production

Saudi Arabia's new procurement law to significantly impact companies competing f ...

Saudi Development and Reconstruction Program for Yemen Delegation Meets with Int ...

Saudi Bugshan Barmaja Co. Ltd Partners with Infor for Success

2nd Saudi Falcons and Hunting Exhibition opens in Riyadh Friday

Dubai Land Department welcomes Saudi Minister of Housing

Unifonic empowers business to capitalize on instant messaging apps to engage wit ...

Saudi Arabia's Ministry of Energy highlights enhanced cybersecurity credentials ...

ACCIONA lays the first stone for IWP Shuqaiq-3, one of the largest desalination ...

MBRU and King Saud University in Saudi Arabia join forces to enhance academic co ...

Foreo Launches Luna 3 to Refresh, Hydrate and Tone Up Your Skin

Turkish Airlines and United Nations Alliance of Civilizations created a joint pl ...

Bidfood KSA announcing another exclusive foodservice distributorship with Genera ...

Millennium Taiba and Al Aqeeq hosted thousands of pilgrims from around the world ...

The Power of the Multi-Masque

IHG signs agreement to debut voco® in Jeddah

SANS Institute to Bring Cyber Threat Knowledge and Ethical Hacking Skills to Sau ...

Introducing Pandora Me, featuring Millie Bobby Brown

RED Events accelerates growth in MENA with the opening of its new Saudi office

The new Bergamot & Neroli collection, inspired by the warmth and energy of Medit ...