Market Dynamics: The Surge in Rental Demand Across Saudi Arabia
The Saudi Arabian real estate sector is expected to achieve a significant increase in rental demand, fueled by the upcoming major events and the arrival of international executives.
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Riyadh is becoming an attractive hub for startup establishment and expansion, leading to a noticeable boost in rental needs. Anticipated events on both the global and regional scale, as well as the establishment of new companies and creation of regional offices by multinational firms, are expected to significantly boost rental demand in key cities like Riyadh and Jeddah, according to experts in the field.
Riyadh’s growing appeal as a destination for startup development is contributing to this increase in rental demand. And events such as Step Saudi, a premier tech and startup festival, and LEAP, the largest global tech and entrepreneur conference, highlight the Kingdom’s increasing role in the global events scene, and further stimulate the rental market.
Property management executives emphasize Riyadh’s potential for market growth, given its population size compared with the other GCC cities like Doha. And while some consider expansion into Bahrain, Egypt, and Oman, Riyadh currently stands out as the prime location for real estate investment due to its rapid development and growth rate.
This trend is reinforced by the policies and financial encouragements of the Saudi government, aimed at attracting foreign investors.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
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Villa prices saw particularly strong growth, with capital values increasing by 33.4 percent year-on-year
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Dubai’s real estate market showed strong performance in the second quarter of 2024, with notable increases across the residential, office, and retail sectors, according to a new ValuStrat real estate report for Q2 2024.
Villa prices experienced particularly strong growth, with capital values rising by 33.4 percent year-on-year.
Haider Tuaima, Director and Head of Real Estate Research at ValuStrat said: “The Dubai real estate market has shown impressive growth and resilience in recent months. The ValuStrat Price Index for Residential Capital Values increased by 6.4 percent quarterly and 28.2 percent annually, reaching 178.2 points.
“Despite severe flooding caused by record rainfalls in April, the quick and effective response from developers and authorities helped to control the damage, ensuring that market activity and property valuations remained robust in the subsequent months.”
The office sector also performed well, with the VPI for office capital values surging by 31.7 percent annually and 9.4 percent quarterly, reaching 212.5 points—the highest quarterly increase in a decade.
In the retail sector, Emaar Properties reported 98 percent occupancy in their prime mall assets, while overall mall occupancy stood at 96 percent during the first quarter of 2024. The hospitality sector also saw growth, with total international guests reaching 8.12 million as of May 2024, a 9.9 percent increase compared to the same period last year. Hotel occupancy reached 81 percent, rising by 1.4 percent year-on-year.
Despite these positive indicators, Tuaima added, “The decline in transaction volumes calls for a closer examination of market dynamics as stakeholders navigate this evolving landscape.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
