The Jeddah real estate market is slowing down, according to JLL, citing challenging economic conditions, low oil prices, and government reforms as reasons for the slowdown.
The consultancy recently released its Jeddah Real Estate Outlook, in which it claimed that “the reduction of jobs in the civil sector” impacted the purchasing power of civil servants, therefore slowing down the market, which is nearing its peak.
The report also stated that the current supply of residential units in Jeddah stands at 800,000, with around 4,000 being finished and entering the market in the third quarter of 2016. Further it noted a decrease in property sales and a slight rent increase of 3%.
Concerning the tourism market, two internationally branded hotels opened recently in Jeddah, while occupancy rates though have declined by 4% year-on-year.