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Jeddah real estate sector remains slow in Q2 2017

Jeddah’s real estate sector has remained “relatively subdued” in the second quarter of the year with further declines in performance recorded, a JLL report revealed on Wednesday

Jeddah, Saudi Arabia.
Jeddah, Saudi Arabia.

Jeddah’s real estate sector has remained “relatively subdued” in the second quarter of the year with further declines in performance recorded, a JLL report revealed on Wednesday.

According to JLL’s Real Estate Market Overview, sentiment in the retail sector has been boosted by benefit reinstatements to public sector staff, among other factors.

Jamil Ghaznawi, national director and country head, JLL, KSA, said: “The pace of decline has generally declined suggesting that some sectors are approaching the bottom of their current cycle.

“Market sentiment is expected to improve somewhat later this year.”

 

The report said the removal of the 20% quota restriction on Hajj pilgrims should see increased demand for both retail and hospitality in Jeddah.

Further reforms to energy costs and the general higher cost of living may, however, curb domestic spending compared to historical trends.

Office rents showed little change Q-o-Q, but both rents and occupancies showed significant decreases year-on-year.

The residential sector has not shown any completion over the second quarter of the year as rents continued to decline, the report added.

 

 

 

   

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