11 July 2012
Riyadh Real Estate Market Overview – H1 2012
Century21 Saudi’s Research & Advisory (CRA) recently issued Riyadh real estate market overview for first half of 2012.
Key highlights of the report are:
– In 2011, the country’s real estate market experienced sustained growth and further expansion in market is expected during 2012. Residential and infrastructure are forecasted to expand with greater pace, while offices and retail segment will experience more limited growth.
– Though 2012 forecasted GDP growth rate of 3.5% is well short of 6.8% posted in 2011, still the economy represent solid achievements when considered in broader financial climate.
– Residential sector has showed a slow performance during H1-2012. As per government statistics, 23,207 transactions have done during first half of 2012, with contraction of 48% as compared to H1-2011.
– The median prices for residential lands have increased by 8% while prices of small villas are increased between 3% to 7%.
– Office market is over supplied and around 400,000 sq m of Grade A & B office stock is currently available in the market.
– During H1-2012 Grade A & B offices showed 6% decline in rents as compared to H2-2011.
– During H1-2012 retail rental rate growth was recorded from 7% to 11% in CBD and top quality retail spaces.
– In first half of 2012, hospitality supply surpassed the demand growth which caused a slight decline in occupancy rate and RevPAR.
In addition, prices/rents of residential & commercial lands, apartments, villas, offices, and showrooms for the key locations of city are included in this report.
For complete report kindly follow below link: