JLL Announces Delivery of 14,000 New Housing Units to Riyadh and Jeddah in Q4 2023.

JLL's Q3 2023 real estate market analysis reveals that Riyadh and Jeddah will witness the addition of 14,000 new residential units in the final quarter of 2023.

The capital, Riyadh, is expected to see 8,000 new homes entering the market, while Jeddah is set to welcome 6,000 more between October and December.

During the third quarter, the market saw the introduction of 12,400 additional residential units, bringing the total number of units in Riyadh and Jeddah to 1.4 million and 875,000, respectively.

In Riyadh, the third quarter of 2023 saw a year-over-year increase of 7% and 3% in prices and rentals, respectively, attributed to the city's rising demand as a regional hub. Apartments remained a driving force, with sale prices increasing by 9% and rentals experiencing a 6% year-over-year increase.

Jeddah's residential market mirrored this growth, with average sale prices showing a 7% year-over-year increase, and rents increasing by 5% year over year in the third quarter.

However, JLL notes that the affordability of apartments is facing challenges from escalating borrowing costs and residential real estate prices.

Data from January to August 2023, released by the Kingdom's Real Estate General Authority, indicates a 2% decrease in transaction volume in Riyadh and a 25% decrease in Jeddah year over year.