Figures

Saudi Arabia Real Estate Market Review Q4 2023

Villa prices rally in major cities while office rents continue to record strong growth rates in 2023.

February 15, 2024 15 Minute Read

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Takeaways

  1. Saudi Arabia’s GDP has softened by 1.2% in 2023.
  2. In December 2023, headline inflation contracted 1.5%.
  3. Total employment jumped 8.4% reaching over 15.8 million Q3 2023.
  4. Purchasing Manager Index (PMI) for Saudi Arabia scored 57.5 for the month of December.
  5. In Q4 2023, the average rent for Riyadh’s Grade A offices increased by 13.0% year on year reaching SAR 1,933 per square metre.
  6. Jeddah’s Grade A offices saw their average rent improve on yearly basis by 19.7% arriving at SAR 1,406 per square metre.
  7. In Khobar, the average rent for Grade A offices reached SAR 1,110 in the year to Q4 2023 highlighting a 7.2% rise.
  8. In the residential market, average apartments prices increased in Riyadh, Dammam and Khobar by 10.7%, 1.8% and 2.0% in the fourth quarter of 2023.
  9. Average apartment price in Riyadh represented the highest value at SAR 4,834 per square metre.
  10. In the 12 months to Q4 2023, average villa prices expanded in Riyadh, Jeddah, Khobar and Dammam by 5.5%, 4.8%, 1.1% and 0.3%.
  11. Jeddah and Riyadh villas had the highest average prices at SAR 5,723 and SAR 5,763 per square metre, respectively.
  12. In Q4 2023, average industrial rents recorded improvements in Riyadh and Khobar of 17.6% and 17.8%.
  13. Saudi Arabia’s hospitality sector recorded improved average occupancy at 4.7%, ADR at 16.5% with RevPAR rising by 26.0%.
  14. In Jeddah, the average occupancy levels saw a jump of 7.0% that was joined by a 0.4% growth in its average daily rate propelling RevPAR to rise by 12.9%.
  15. Riyadh gained 3.1 percentage points raise in its average occupancy, as its ADR expanded by 17.5% leading to a 23.5% increase in RevPAR.