While Jeddah’s real estate sector softened further in Q3, ongoing investments in infrastructure and non-oil industries are expected to offset subdued nature of the market in the long term, real estate consultancy JLL said in its latest market overview.
“New transport infrastructure developments in Jeddah are paving the way for a more connected city which could positively impact future office demand,” the report said.
This quarter, the Haramain High Speed Railway completed its first journey from Jeddah’s Al-Sulaymaniyah station celebrating the completion of the largest electric train project in the Middle East.
The rail link aims to connect Jeddah, Makkah and Madinah with improved access to Jeddah’s King Abdul-Aziz International Airport, King Abdullah Economic City and Madinah.
“Although the market remained subdued in Q3, the enhanced infrastructure developments towards a more connected city are a step towards attracting increased investment opportunities. The new King Abdul-Aziz International Airport will inaugurate operations in mid-2019, and this completion has the potential to uplift the real estate market performance in Jeddah,” said Dana Salbak, Associate, JLL MENA.
JLL report said the rental and vacancy rates in Jeddah’s retail sector remained unchanged in Q3 as there were no new further completions.
“However, cinemas, F&B (food & beverages) and entertainment options are still the hot topic of shopping centers and will play a greater role in malls performances going forward. Job opportunities for Saudi Nationals continue to be a focus of Vision 2030 which in turn will boost jobs in the retail sector,” the report added.
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