KSA, 26 December, 2024 : A CBRE Middle East report highlights a 4.3% expansion in Saudi Arabia's non-oil sector as of Q3 2024, driven by ongoing government investment attracting global businesses and boosting demand in Riyadh’s real estate market.
Office Sector
Riyadh remains the focal point for office demand, with occupancy nearing 100%. Rental averages rose across Prime, Grade A, and Grade B segments by 6%, 14%, and 19%, respectively, while Jeddah saw Grade B rentals jump 21%. Limited office supply has prompted repurposing retail spaces into serviced offices.
Residential Sector
Residential transactions surged in major cities: Riyadh (31% YoY), Dammam (37%), and Jeddah (7%). Villa prices in Riyadh rose 5% to SAR 6,000/sqm, with further growth expected in 2025. Apartment prices climbed 4% YoY to SAR 5,000/sqm, while Jeddah’s villa values reached SAR 5,800/sqm.
Hospitality Sector
Saudi Arabia welcomed 60 million tourists in the first half of 2024. While occupancy softened, Average Daily Rates (ADR) and Revenue Per Available Room (RevPAR) increased by 2.3% and 0.7%, respectively. Tourism growth, central to Vision 2030, is expected to exceed last year’s figures.
Industrial and Logistics
MODON signed SAR 2 billion in deals with ALBADDAD to develop industrial cities in Makkah and Al Kharj, supporting Saudi Arabia’s ambition to be a regional manufacturing and logistics hub. These initiatives align with the National Industrial Development and Logistics Program launched in 2019.
Source : www.zawya.com
