Riyadh – Mubasher: Rentals of residential apartments in the Saudi city of Jeddah registered a decrease ranging between 10% to 15% in 2017, according to a recent real estate market report.
The decline in rentals was attributed to the departure of families of some foreign workers in the Kingdom, KPMG Al Fozan & Partners real estate’s report showed.
The report further noted that rental ratios and sales prices of residential villas in the GCC country levelled down in 2017.
”While the residential real estate market in Jeddah is currently witnessing a correction in the sale and lease rates, this would serve the interest of the nationals by reducing cost of housing which is a primary objective of any Government,” head of real estate with KPMG Al Fozan and Partners Rani Majzoub said.
Jeddah’s Eastern regions fit the apartment development projects on the back of their proximity to the city centre and have a full-fledged road network, Majzoub added.
The real estate firm’s report has forecast that there will be about 30,000 residential units to be built in the coming two years.
Most of the planned 30,000 units will be established by Al Ra’idah Investment company.
Al Ra’idah Investment company will provide about 1,180 villas, and around 6,160 apartments.
“The performance of the retail sector remained subdued in 2017 and market has witnessed a modest decline of 4% - 5% in rentals,” the report stated.
KPMG Al Fozan & Partners provides tax and advisory services which comprise a dedicated and specialised real estate team and a leading audit.
