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According to a new CBRE report, the real estate market in Saudi Arabia is doing differently in each of its cities, with notable increases in office rentals and villa prices. Riyadh’s remarkable 63.7% gain in residential sales, in contrast to Dammam’s 23.4% fall, highlights this diverse landscape. Notably, transaction volumes in the residential sector increased by 63.7% in Riyadh and by 23.4% in Jeddah, but decreased by 23.4% in Dammam.

Major Saudi cities have seen an increase in the average price of apartments, with large increases in Riyadh, Dammam, and Khobar. On the other hand, Jeddah’s rental market had a little downturn. In contrast, the market for villas expanded consistently in all of the major cities, including Riyadh, Jeddah, Dammam, and Khobar.

Riyadh recorded a notable 20.7% increase in prime rent in the office sector, with both Grade A and B rates seeing significant growth. While Grade B offices continue to enjoy excellent occupancy rates, Grade A workplaces have reached capacity. There is a high demand for office space, as seen by the growth in office rentals and occupancy rates in Jeddah and the Eastern Province.

With noticeable gains in average occupancy rates, average daily rates (ADR), and revenue per available room (RevPAR), the Saudi Arabian hotel industry has surpassed its 2019 baseline. Positive growth has been observed in cities like as Riyadh, Jeddah, Makkah, Madinah, Khobar, and Dammam; these cities are indicative of a robust recovery and demand in the hospitality sector.

Reforms in shipping and container handling were spearheaded by the Ministry of Transportation and Logistics Services, which helped the industrial real estate industry both structurally and operationally. Rents for industrial and logistical space have increased as a result in Riyadh, Khobar, Dammam, and Jeddah.

Looking ahead, the persistent mismatch between supply and demand across several industries is expected to fuel a strong performance for Saudi Arabia’s real estate market in 2024, according to CBRE. The market is anticipated to continue performing strongly despite probable economic challenges, providing investors with encouraging prospects.