JLL: 14,000 homes to enter Saudi Arabia's Jeddah in 2020-21
Al Tawheed Tower, Emaar Residences Abraj Al Hilal 3, and Phase 1 of Manazil Al Safa are among the planned deliveries
The residential market in Jeddah will see 14,000 homes added between 2020 and 2021 even as the sector notes subdued growth alongside similarly muted performance from the hospitalty, commercial, and retail segments, JLL said in its KSA Real Estate Market Mid-Year Review 2019 report.
Jeddah recorded the delivery of the 176-unit Bayat Plaza Tower 1 on Madinah Road in Q2 2019, with Tower 2 of the project expected to be delivered by the end of this year.
Projects including the 122-unit Al Tawheed Tower; the 283-unit Emaar Residences Abraj Al Hilal 3 within Jeddah Gate; and Phase 1 of Manazil Al Safa are among the planned deliveries for 2019.
Office space demand also observed a downward trend in Jeddah during H1 2019 as business activity slowed in the city, according to JLL.
While no major office projects were completed in Q2 2019, developments such as Al Rawdah Business Avenue, Cairo Plaza, Vision Tower, Signature and Sara Square, and Corniche Centre are expected to be completed later this year, JLL said.
Jeddah’s retail sector continued to see a slow movement on the back of slow progress on mall completions in Q2.
However, with the expected completion of Jeddah Park and Serafi Mall, the city’s gross leasable area in the retail segment is expected to grow by 24.7ha in H2 2019 and 2020.
Hotel occupancy in Jeddah reached 53% in May 2019, down from 54% in the same period last year.
The launch of the Ibis Jeddah Malik Road hotel in Q2 2019 led to the addition of 180 keys to the city's market during the period.
H2 2019 will see 1,000 hotel keys delivered in Jeddah through the launch of Ibis Jeddah Alesayi Plaza, Jeddah Marriott in Al Bawadi, Crowne Plaza Jeddah, and Park Inn by Radisson Madinah Road.