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Saudi Arabia Real Estate Market Review Q3 2023

Saudi Arabia's office market performance expands in Q3 2023 as quality supply looms

November 16, 2023 15 Minute Read

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Key Takeaways

  1. Saudi Arabia’s GDP is projected to expand by 0.4% in 2023.
  2. Headline inflation has declined to 1.7% in September 2023.
  3. In Q2 2023, unemployment rate in Saudi Arabia has declined to 4.9%.
  4. In Riyadh, Grade A rents rose by 12.9% reaching SAR 1,900 per square metre.
  5. In Jeddah, the Grade A offices increased 17.9% in the year to Q3 2023, with average rent at SAR 1,356 per square metre.
  6. The total number and total value of residential transactions fell by 7.0% and 11.3% in the year to date to September 2023
  7. In terms of average villa prices, Riyadh, Dammam and Khobar registered improvements of 1.2%, 1.8% and 3.2%.
  8. Apartment prices grew in Riyadh, Khobar and Dammam in the 12 months to Q3 2023.
  9. In the hospitality sector, Saudi Arabia saw average occupancy record an increase of 1.2 percentage points with ADRs rising by 9.6%, as RevPAR improve by 11.8%.
  10. In Makkah and Madinah, average occupancies rose by 5.9 and 10.1 percentage points, while ADRs rose by 27.2% and 38.1%, resulting in RevPAR growths of 40.6% and 60.8% respectively.
  11. Riyadh saw a 3.1 percentage point increase in its average occupancy rate accompanied by an improved ADR of 13.1%. Leading to its RevPAR increasing by 19.1%.
  12. In Q3 2023, average industrial rents in Riyadh, Khobar and Dammam have risen by 30.3%, 16.4% and 19.8%.
  13. Jeddah’s average rent fell at the rate of 0.7% with average price of SAR 180 per square metre in the year to Q3 2023.