Riyadh home, office real estate sectors decline in Q2 2019
Hospitality and retail continued to stabilise or note growth even as home and office values declined in Saudi Arabian capital
Riyadh’s real estate market noted a decline in Q2 2019, with office and residential prices and rents continuing their downward trends even as the retail sector found stability – particularly in the malls segment – and the hospitality market remaining optimistic as Saudi Arabia entertainment projects pick up steam, JLL said in its KSA Real Estate Market Mid-Year Review 2019 report.
More than 7,600 residential units were delivered in Riyadh during Q2 2019, and another 50,000 units are expected to be handed in H2 2019 and 2020.
In the commercial sector, the delivery of Riyadh Business Park's Phase 1 raised the total gross leasable area added during Q1 2019 to 4.3km22019.
Construction work on Phase 2 of the project is under way, with the project set to be completed over the next two years.
Separately, 15.7ha of GLA was added to Riyadh's retail sector in Q2 2019, with The Zone and University Avenue being two of the major contributors during the quarter.
Retail centres including Qurtoba Boulevard, River Walk Centre, and Shorofat Al Nada Park are currently under construction in the Saudi Arabian capital, with JLL expecting these to impact future retail supply in the city.
Riyadh’s hospitality industry witnessed a surge in the delivery of hotel keys during Q2 2019, with 14,350 hospitality units delivered during the period.
Hilton Riyadh King Saud University Residence and Mercure Al Anoud by Princess Al Anoud Foundation are two of the largest serviced apartment projects due to be handed over in 2019, JLL added in its report.