Limited stock constrain activity levels in Saudi Arabia’s real estate market, says CBRE

Limited stock constrain activity levels in Saudi Arabia’s real estate market, says CBRE

Riyadh – Lack of stock availability has impacted activity levels in Saudi Arabia’s real estate sector during the third quarter of the year.

Looking at Saudi Arabia’s office sector figures, the majority of activity remains centered towards Riyadh, with occupancy levels now reaching 99.0% and 98.7% for Grade A and Grade B stock respectively. Constrained supply levels have continued to support growth in rental rates, where in the year to September 2022, average Grade A and Grade B rents in Riyadh increased by 5.9% and 3.5% respectively. In Jeddah, we have seen an uptick in demand with most requirements favouring serviced office offerings, as average Grade A rents increased by 8.2% when compared to Q3 2021. In the Eastern Province, Grade A rents in Dammam and Khobar registered an increase of 3.9% and 8.2% respectively over the same period.

Residential transaction volumes in Saudi Arabia fell by 15.5% in Q3 2022, compared to a year earlier, with the total value of transactions also slightly decreasing by 0.8%. Overall, the number of residential transactions totalled 37,743 and the value of transactions totalled SAR 25.6 billion this quarter. With regards to transactions on a regional level, the Dammam Metropolitan Area (DMA) was the only