Retail in Riyadh confident, indicates JLL Q4 2014 Real Estate Market Overview


January 22, 2015 | By RetailME Bureau

Jones Lang LaSalle (JLL) has released its fourth quarter (Q4 2014) Riyadh Real Estate Overview report that asses the latest trends in the retail, hotel, office and residential sectors in Saudi Arabia’s largest city.

Commenting on the Riyadh market report, Jamil Ghaznawi, national director and country head of JLL KSA, observes, “Confidence in the retail market remains strong as reflected in the announcement of various new shopping centres, positively effecting rental growth figures. Supply increases in the hotel sector that showed occupancy rates were improving and average daily rates remain under downward pressure. While in the office sector, new supply has constrained performance and increased vacancies. In the last quarter of 2014, we have also witnessed the introduction of new mortgage regulations requiring a 30% down payment on all home financing; this has restricted growth levels in the residential market.”

The retail segment saw no new completions over the last quarter, as only smaller retail centres were delivered – for example Meem Plaza. Rents have slightly increased in regional and community shopping centres, whereas super regional malls saw no increase. Vacancy levels in major malls have slightly decreased (-1%) during this quarter. Delays in the KAFD and ITCC projects have resulted in their retail components being pushed back into 2015 and beyond.

“The Saudi real estate market is heavily dependent upon high levels of government spending and while the more prudent approach is unlikely to have an immediate impact on the market in 2015, it certainly marks the end of a period of rapid increase in spending, which could constrain the growth of the real estate market in the longer term,” adds Ghaznawi.

Comments

comments

Previous Article Next Article

YOU MAY ALSO LIKE /



Union Coop, a consumer cooperative in the UAE, revealed that 78% of 

Continue Reading

August 24, 2021 | By Jibran Chouguley

Union Coop has opened its 23rd branch within the UAE in Jumeirah 

Continue Reading

August 2, 2021 | By Jibran Chouguley

Nando’s has revealed their revamped Sheikh Zayed Road outlet where newcomers and 

Continue Reading

July 8, 2021 | By Jibran Chouguley

UAE-based Al Maya Group announced that it will be boosting import of 

Continue Reading

June 24, 2021 | By RetailME Bureau

UAE-based grocery retail chain, Grandiose has opened its first hypermarket in Abu 

Continue Reading

June 2, 2021 | By RetailME Bureau

UAE-based Carrefour announced its theme and plans for Ramadan 2021. The brand 

Continue Reading

March 31, 2021 | By RetailME Bureau

Locally owned supermarket Spinneys celebrates 60 years of doing business in the 

Continue Reading

March 9, 2021 | By RetailME Bureau
Almarai, Carrefour, Emirates have the most loyal customers

UAE-based Carrefour will become the first retailer in the region to offer new levels 

Continue Reading

February 22, 2021 | By RetailME Bureau

The Organic Farmers’ Market is back in Bay Avenue for its 12th 

Continue Reading

February 17, 2021 | By RetailME Bureau

UAE-based  Lulu Group recently inaugurated its first-ever all-female staff store in Jeddah, 

Continue Reading

February 15, 2021 | By RetailME Bureau
Jones the grocer

Jones the Grocer, the gourmet grocer and cheese retailer launches the Jones 

Continue Reading

February 1, 2021 | By RetailME Bureau

UAE-based Al Maya Supermarkets is hosting a two-week food festival at select 

Continue Reading

January 17, 2021 | By Lawrence Pinto




Download Images RetailME Magazine