Saudi Arabia Archives - Amora Escapes https://amoraescapes.com/category/saudi-arabia/ Property 101 Thu, 02 Nov 2023 15:51:37 +0000 en-US hourly 1 https://amoraescapes.com/wp-content/uploads/2022/11/Amora-Escapes-Favico.png Saudi Arabia Archives - Amora Escapes https://amoraescapes.com/category/saudi-arabia/ 32 32 Dubai Real Estate Market Faces Riyadh Challenge as Saudi Property Popularity Surges https://amoraescapes.com/2023/11/23/dubai-real-estate-market-faces-riyadh-challenge-as-saudi-property-popularity-surges/ Thu, 23 Nov 2023 14:31:03 +0000 https://amoraescapes.com/?p=4947   Riyadh is fast emerging as a serious contender in the real estate sector globally,…

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Riyadh is fast emerging as a serious contender in the real estate sector globally, challenging Dubai’s long-standing dominance, riding on the back of a huge price advantage over the UAE city and the Saudi government’s big push to woo international investors through financial incentives, a latest industry report revealed.

A vast pool of potential domestic investors – estimated at 37 million, besides the rising number of international investors, are the other factors that could propel the Saudi capital city to become the new regional hot spot for real estate investments.

“In stark contrast to Dubai, Riyadh’s affordability has been a key magnet for investors, promoting substantial economic expansion,” the report by Dubai-based proptech Realiste said.

“In comparison to real estate prices in other global cities, Riyadh offers notably affordable options at an average cost of $1,394 per square meter, whereas Dubai showcases prices at $7,002 per square meter,” the AI-driven analysis-based report said.

“Investments in Saudi Arabia are expected to reach hundreds of billions of dollars in the next 5 years, which will certainly raise prices and open up new opportunities for investors to receive multiple refunds,” Alex Galt, founder of Realiste, told Arabian Business.

The average sale prices for apartments are expected to surge by 22 percent, while villa prices are anticipated to rise by 12 percent year-over-year in Riyadh, according to data from Knight Frank.

The global consultancy’s data also showed that Riyadh is set for remarkable growth with over 1.5 million available units and a projected 10 percent increase in supply by 2025.

Dubai vs. Riyadh: The competitive edge

Realiste said while Dubai has long been a powerhouse in the real estate market, Riyadh is fast emerging as a contender for remarkable growth and dominance in various aspects, fuelled by Saudi Arabia’s rising status as a global innovation and economic powerhouse boosting the capital city’s burgeoning real estate market.

“With ambitious initiatives, robust economic growth, and an increasingly attractive investment environment, Riyadh is poised to challenge Dubai’s long-standing reign as the regional real estate leader,” said the report by Realiste, which operates in over 100 cities worldwide.

The numbers on economic growth and current trends in real estate prices indicate that Riyadh is indeed set for remarkable growth, signalling a promising future for Saudi Arabia’s real estate market and its potential to outperform Dubai, it added.

“Saudi Arabia is obviously the next big market – it is home to 37 million people. While prices – vis-a-vis the world market – are still low, the housing area there remains one of the largest in the world,” Galt said.

“In addition, there is a lot of need for infrastructure development and construction, which creates a great demand for quality housing,” the Realiste founder said, adding that “domestic demand, especially, is growing vigorously”.

Government push to further boost Saudi real estate sector investment potential

The report said government-sponsored measures to enhance the city’s infrastructure, advance technology, and foster cultural hotspots have been instrumental in attracting visitors and investors to Riyadh.

To address the increasing land and housing prices, Saudi Arabia has allocated 100 million square meters of land for the residential sector in the capital and other cities.

“This move aims to balance supply and demand, allowing for a more sustainable growth pattern,” the Realiste report said.

Alex Galt, founder and CEO of Realiste

“Investment demand is also fuelled by the fact that foreign investors were previously restricted the right to purchase real estate, but now everyone expects that they will get such an opportunity,” Galt said.

A booming market with enormous potential

The report said with a burgeoning population, increasing demand for housing and lifestyle facilities, supportive regulatory frameworks, and its strategic regional location, Saudi Arabia’s real estate market is expected to soar with vast potential in the coming years.

The country remains an attractive destination for global investors, despite the current regional challenges, it added.

Galt said despite some possible difficulties in the region, such as the situation with Israel and Hamas, most expect Saudi Arabia to become the next huge market in the next 5 years.

“It will continue to grow, attracting the attention of investors from all over the world, including Europe, Russia, and Arab countries,” he said.

Source : ArabianBusiness

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Value of Saudi Arabia’s Real Estate and Infrastructure Projects Top $1.25tn https://amoraescapes.com/2023/09/20/value-of-saudi-arabias-real-estate-and-infrastructure-projects-top-1-25tn/ Wed, 20 Sep 2023 11:44:02 +0000 https://amoraescapes.com/?p=4701   The value of real estate and infrastructure projects announced since Saudi Arabia rolled out its National Transformation Plan…

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The value of real estate and infrastructure projects announced since Saudi Arabia rolled out its National Transformation Plan in 2016 has crossed $1.25 trillion, agency Knight Frank has said.

With the execution deadline of the end of this decade fast approaching, the kingdom has commissioned projects worth $250 billion so far since the launch of its Vision 2030 economic and social diversification programme, the global real estate consultancy said in its annual Saudi Giga Projects report.

Saudi Arabia, the Arab world’s biggest economy and Opec’s top oil producer, is aiming to cut its dependence on the sale of hydrocarbons.

Riyadh’s overarching Vision 2030 agenda seeks to further develop the kingdom’s industrial base, broaden the country’s infrastructure and advance sectors including real estate, health and education to create more jobs for its rapidly expanding population.

The development of the tourism and hospitality sector is one of the central planks of Vision 2030. Saudi Arabia’s sovereign investment arm, the Public Investment Fund, is backing several projects in the kingdom including the $500 billion futuristic city Neom, and multi-billion-dollar developments on the Red Sea coast, as well as in Riyadh.

“Arguably one of, if not the most, expansive real estate development programmes ever seen in the world is gathering pace in Saudi Arabia as the 2030 deadline nears to realise Vision 2030,” Faisal Durrani, partner and head of Mena research, said.

Saudi Arabia, which was the fastest-growing major economy last year, aims to receive 100 million tourists by 2030 and is investing heavily in expanding its retail and hospitality offerings.

Knight Frank said the value of real estate and infrastructure projects across the western half of the country has climbed to $687 billion.

“The western half of the kingdom contains the highest concentration of headline-grabbing projects in the country, including of course Neom,” Harmen de Jong, partner and head of strategy, Saudi Arabia, at Knight Frank said.

In the last year, authorities announced various sub-components in Neom, including Trojena, the host location for the 2030 Asian Games, as well as Sindalah, a luxury island that will be the first of Neom’s projects to materialise.

“Neom overall is also progressing rapidly, with $70 billion of projects now awarded, 45 per cent of which has been completed,” he said.

The transformation is “clearly visible across the entire urban landscape”, as the planned giga projects are set to vastly expand the residential, office, retail, hospitality and industrial offerings to accommodate the projected population growth to 50 million by 2030, the report said.

Riyadh, in particular, is a hive of development activity and currently accounts for 18 per cent of all real estate projects under way, totalling about $229 billion, Knight Frank said.

The volume of residential units planned has climbed 30 per cent over the past 12 months to 660,000 units, which is “welcome news” for prospective homeowners.

A rise in the values of residential properties in recent quarters led to a nationwide decline in the volume of homes being sold in the kingdom, according to the report.

“Affordability is still a key hurdle for many buyers and so price points for the new inventory will be critical to reigniting domestic demand,” Mr Durrani said.

In the commercial market, 5.3 million square metres of retail space is now planned, with a further 289,000 hotel rooms that “will go some way to supporting Saudi Arabia’s goal of hosting 100 million visitors by 2030”, he said.

The office real estate pipeline in the kingdom is also steadily growing, reaching six million square metres.

“The swelling of the office pipeline is set against a backdrop of a severe shortage of prime Grade-A space in cities such as Riyadh, which stands in stark contrast to other global centres where occupancy levels still trail pre-pandemic levels,” Mr Durrani said.

Source : TheNational

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API Global Heads to Saudi Arabia to Showcase UK Property https://amoraescapes.com/2023/09/12/api-global-heads-to-saudi-arabia-to-showcase-uk-property/ Tue, 12 Sep 2023 11:00:11 +0000 https://amoraescapes.com/?p=4677   Leading UK property investment specialists API Global will be attending CityScape Global in Saudi…

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Leading UK property investment specialists API Global will be attending CityScape Global in Saudi Arabia, in collaboration with UK property developers Elevate Property Group and Investin PLC.

The event, which runs from Sept. 10-13, will see API Global showcase its extensive UK buy-to-let property portfolio to the exhibition’s 180,000 attendees. Following this, the company will launch its eagerly anticipated second office in Saudi Arabia.

With rental demand in the UK at an all-time high, developers across the UK are looking to build more stock to capitalize on the surge in rentals and deliver strong returns for investors both in the UK and overseas. API Global helps investors build passive income through property with their sophisticated end-to-end solution.

With a strong development portfolio, including off-plan, completed, and below-market-value stock, investors can maximize their capital growth from Day 1 of their investment, the company claims.

Michael Leighton, CEO of API Global, said: “API is a truly global business, serving property investors across the UK and the Middle East. We’re proud to work with some of the best developers in the UK, including Investin PLC and Elevate Property Group, to bring high-quality developments to the market.

“We’re the UK’s leading property investment company, and opening our Saudi office will further solidify our position and attract more investment into the UK.”

He added: “If you’re attending CityScape Global, please make sure you pay a visit to the API Stand at H1 V11, near gate 3.”

Census data reveals the scale of the shift in the UK housing market, with the number of households renting in England and Wales more than doubling since 2001. Five million households are now renting privately compared to 1.9 million in 2001, and homeownership rates have fallen from 64.1 percent in 2011 to 62.3 percent in 2021. Looking at more specific markets, hotspots such as London, Birmingham, and Manchester are going through a period of unprecedented, sustained growth. Across the UK, rents have increased by an average of 11 percent, rising to 15.8 percent in London and more than 23 percent in Manchester. In London, rents are increasing at their highest-ever rate, and outside the capital, average rents have reached another new record of over £1,100 pounds ($1,385) per month.

API Global has had an office in the Middle East — in Dubai — since the company’s inception in 2013, serving expats and locals alike looking to invest in one of the most stable and secure asset classes in the world: UK property. Looking to expand further into the region and to cater to the increased demand for their end-to-end investment and management service, API Global is now ready to open its second Middle East office in Saudi Arabia.

Source : ARABNEWS

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Saudi Arabia’s Real Estate Sector Maintains Growth Surge in Q2: CBRE https://amoraescapes.com/2023/09/04/saudi-arabias-real-estate-sector-maintains-growth-surge-in-q2-cbre/ Mon, 04 Sep 2023 02:51:36 +0000 https://amoraescapes.com/?p=4655   RIYADH: Saudi Arabia’s thriving economy has resulted in rising occupancy levels and an increase…

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RIYADH: Saudi Arabia’s thriving economy has resulted in rising occupancy levels and an increase in the average rentals of commercial spaces in the Kingdom’s major cities in the second quarter, according to a global real estate consultancy firm.

According to CBRE’s latest report, offices in the capital city of Riyadh had nearly 100 percent occupancy in the second quarter of this year, with Grade A and Grade B properties witnessing a year-on-year rise in average rental rates by 12.2 percent and 14.4 percent, respectively.

Grade A office properties have high-end amenities and good connectivity, while Grade B spaces are less advanced than the former.

The report noted that Grade A office rents in Jeddah increased by 20.7 percent in the second quarter of 2023, compared to the same period a year earlier, while Grade B rents rose by 1 percent during the same time frame.

“In the second quarter of 2023, Saudi Arabia’s real estate market continued to see its positive momentum continue,” said Taimur Khan, CBRE’s head of research for the Middle East and North Africa.

He added: “Market segments such as the Kingdom’s hospitality, industrial and office sectors have recorded strong rates of growth on the back of an influx of demand or a lack of suitable supply or in some cases both.”

Residential sector overview in Q2 

According to the report, the average apartment price in Riyadh surged by 22.9 percent in the second quarter of this year compared to the same period in 2022.

The report added that apartment prices in Dammam rose by 2.4 percent annually in the second quarter.

However, apartment prices in Khobar and Jeddah declined by 4.3 percent and 3.5 percent, respectively.

The report further noted that the total number of residential transactions in Saudi Arabia declined 38.1 percent in the second quarter to SR26.8 billion ($7.14 billion) compared to the year-ago period.

“One sector which has bucked the wider trend has been Saudi Arabia’s residential sector. Heightened affordability challenges, combined with a lack of suitable stock, has meant that the number of residential transactions volumes fell sharply in the first half of 2023, compared to a year earlier, albeit with prices increasing in most parts,” added Khan.

Tourism sector grew in Q2 

The report noted that Saudi Arabia’s hospitality sector witnessed robust expansion in the second quarter of 2023.

All key performance indicators of hotels improved in the second quarter of 2023, with the average occupancy rate in the first six months of the year increasing by 8.4 percentage points.

This trend helped hotels improve their average daily rates, which increased by 25.2 percent.

In comparison, revenue per available room also grew by 44.4 percent in the second quarter compared to the same period of the previous year.

Source : ARABNEWS

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Dubai Real Estate: 32,000 New Property Units to be Available by End of 2023 https://amoraescapes.com/2023/05/19/dubai-real-estate-32000-new-property-units-to-be-available-by-end-of-2023/ Fri, 19 May 2023 21:14:05 +0000 https://amoraescapes.com/?p=4117 More than 32,000 residential properties in Dubai, including villas and apartments, will be handed over…

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More than 32,000 residential properties in Dubai, including villas and apartments, will be handed over by the end of 2023, real estate consultancy Asteco said in its Q1 2023 report, indicating the growth of the emirate’s real estate sector and its post-pandemic resiliency.

Despite growing concerns over the volume of future housing supply, the emirate will see the completion of 27,400 apartments and 4,650 villas by year-end. The emirate reported delivery of 27,000 apartments and 3,930 villas in 2022, the report said.

Nevertheless, the appetite for new project launches continues to be well received by investors and end-users, the report added.

Dubai recorded delivery of nearly 7,600 units in Q1 2023, matching the volume in the final quarter of 2022. The villa supply picked up significantly, with approximately 2,150 units handed over, more than doubling from the previous quarter.

Villas remained the predominant focus, offering higher rental and occupancy rates. The average apartment and villa rental rates continued to record strong growth in Q1 2023, particularly in higher-quality developments, with quarterly increases of 4% and 7%, respectively.

The annual price increase for apartments and villas grew 17% year-on-year, with apartments and villas up 3% and 5%, respectively.

Office rental rates grew on average by 6% over the last three months, with annual rental increases at 21%.

Asteco expects the momentum to continue throughout 2023 in the Dubai real estate market, albeit at a more sustainable rate than in 2022.

Abu Dhabi

The UAE capital saw a supply of around 1,600 residential units in Q1 2023, mainly across Al Raha Beach, Al Reem Island and Saadiyat Island.

“With several new projects currently in the planning and design stage and anticipated to launch over the year, Abu Dhabi’s development pipeline throughout the rest of 2023 shows no signs of slowing down,” Asteco said.

While apartment rental rates showed stability, prime and high-quality apartment developments registered an average rental increase of 2% in Q1 2023. But, these increases were limited to new tenants.

The villa rental market continued its upward trajectory in Q1 2023, with an average quarterly increase of 2%. Lease rates in prime villa communities rose up to 5%.

Sales prices for completed residential apartment and villa developments were broadly flat over Q1, albeit the average increase over the past 12 months was 2.0%.

While sales rates for the off-plan prime and high-quality projects segment surged recently, they remain at a steep discount to comparable properties in Dubai but represent “exceptionally good value”.

Demand for office space in Abu Dhabi, particularly for Grade A / B+, remained strong, predominantly in prime locations, the report stated.

Source: ZAWYA

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Dubai Property Rent Gains See No Slowdown in Q1-2023, with Sharp Hikes at Dubai Marina, JBR https://amoraescapes.com/2023/05/18/dubai-property-rent-gains-see-no-slowdown-in-q1-2023-with-sharp-hikes-at-dubai-marina-jbr/ Thu, 18 May 2023 20:33:45 +0000 https://amoraescapes.com/?p=4120 Tenants in Dubai hoping rental gains would slow down during the first quarter of 2023…

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Tenants in Dubai hoping rental gains would slow down during the first quarter of 2023 will be disappointed – rents kept increasing across most popular locations with those at Dubai Marina up 6 per cent JLT residents having to pay 5 per cent or more on their renewals.

Many residents had been hoping some slow down would be there in rental increases after the hot streak Dubai’s property market recorded in 2022 and for the most part of the year before that as well. Even affordable locations such as Discovery Gardens, International City too have had landlords asking for more, by 4 per cent on average, according to the latest update from the property firm Asteco.

As for Palm Jumeirah, even after all the spikes it had in 2022, the last quarter still had room for a further 8 per cent gain over Q4-22. On a 12-month basis, Palm’s up 32 per cent – the highest across any major location in Dubai.

The three tower clusters of JBR, the Downtown and Dubai Marina were close behind at 28, 28 and 27 per cent, respectively.

What all this means in real terms

For a tenant in Dubai Marina, a two-bedroom could be anywhere from Dh90,000-Dh185,000 a year, with new or high quality buildings commanding a sizeable premium.

At JBR, which in recent months has strengthened its hotspot status, with 2-beds at between Dh110,000-Dh170,000.

“There has inevitably been a growing gap between landlord and tenant expectations,” says the Asteco report. “After years of decreasing rents, many landlords have aggressively sought to benefit from favourable market conditions.

“This has resulted in attempts to secure significant rental increases at lease renewal and invariably resulted in the increasing application of eviction notices.”

Source: Gulf News

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Dubai Records $2.8bln in Weekly Real Estate Transactions https://amoraescapes.com/2023/05/17/dubai-records-2-8bln-in-weekly-real-estate-transactions/ Wed, 17 May 2023 21:48:09 +0000 https://amoraescapes.com/?p=4123 A total of 3,050 real estate transactions worth AED10.4 billion were conducted during the week…

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A total of 3,050 real estate transactions worth AED10.4 billion were conducted during the week ending 5th May 2023, according to figures released by the Dubai Land Department (DLD).

The DLD report showed that 189 plots were sold for AED1.19 billion, 2,239 apartments and villas were sold for AED5.11 billion.

The top three transactions were a land in Al Thanayah Fourth sold for AED52 million, followed by a land that was sold for AED40.62 million in Saih Shuaib 2, and a land sold for AED35.36 million in Palm Deira in third place.

Al Hebiah Fifth recorded the most transactions for this week by 63 sales transactions worth AED188.2 million, followed by MADINAT HIND 4 with 22 sales transactions worth AED29.01 million, and Jabal Ali First with 16 sales transactions worth AED58 million in third place.

The top three transfers for apartments and villas were a was sold for AED90 million in Al Merkadh, an apartment was second in the list sold for AED78 million in Jumeirah Second, and thirdly it was an apartment sold for AED67 million in Burj Khalifa.

The sum of the amount of mortgaged properties for the week was AED3.69 billion, with the highest being a land in Al Barshaa South Third, mortgaged for AED653 million. 110 properties were granted between first-degree relatives worth AED497 million.

Source: ZAWYA

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