Rental values in Jeddah’s housing sector in the first quarter of the year have decreased by 9% quarter-on-quarter and 8.5% year-on-year, Invest-Gate reports.

JLL explains in its Q1FY2017 Jeddah Real Estate Market Overview that this decline follows the economic slowdown of the market in 2016, and in turn, the departure of a large number of expatriates. “However, the rental market now sees more room for negotiation, forcing the rental values to go down,” JLL predicts in its overview.

“Amid toughening economic conditions and the dip in oil prices, there has been positive developments in the office sector in Q1 where the healthcare sector continues to provide viable tenants for office space in Jeddah,” says JLL KSA’s National Director and Country Head Jamil Ghaznawi.

“An increased number of commercial buildings are leasing to clinics and other healthcare providers,” he adds.