Arab Press

بالشعب و للشعب
Saturday, May 31, 2025

KSA records 21% growth in residential real estate transactions in Q2: CBRE

KSA records 21% growth in residential real estate transactions in Q2: CBRE

Saudi Arabia recorded SR36 billion ($9.58 billion) worth of transactions in the residential real estate sector in the second quarter of 2022, recording a 21.4 percent increase over the same period last year, the latest market report by the global real estate adviser CBRE revealed.

While the volumes of residential transactions fell by 19.9 percent to over 44,000 deals in the second quarter when compared to last year, the Kingdom saw the overall value of translations increase due to a spike in apartment prices.

The average apartment prices, on a per square meter basis, across the Kingdom have increased by 6.2 percent in the year to the second quarter of 2022.

This was led by Saudi city Alkhobar which recorded a growth of 11.3 percent in apartment prices, followed by Jeddah and Riyadh with a spike of 5 percent and 4.2 percent, respectively, in prices in the second quarter.

However, aside from Alkhobar, all major cities registered a sharp decline in the annual rate of price growth in the second quarter of 2022, compared to the quarter earlier, revealed CBRE’s Saudi Arabia Real Estate Market Review Q2 2022 report.

In line with the national trend, all the major cities saw a fall in the number of residential transactions in the year to the second quarter, with the Kingdom’s capital leading the chart with over a 33 percent fall compared to a year earlier. Jeddah and Dammam followed suit with a drop of 6.2 percent and 3.4 percent respectively.

While Saudi Arabia’s economy has gone from strength to strength recently, analysts at CBRE said the Kingdom’s real estate market performance remains “fragmented” on a city and asset class level.

“Given the scale of the change that the Kingdom is undergoing across all asset classes, this is to be expected,” said Taimur Khan, head of research – MENA at CBRE.

However, he said their long-term outlook on Saudi Arabia’s real estate sector remains “optimistic,” despite some of the short-run challenges.

Office sector


The CBRE report said visitation to the workplace in Saudi Arabia remains above its pre-pandemic baseline and now sits 19.3 percent above the baseline.

But, the capital city Riyadh continues to remain at the center of commercial activities, where demand continues to significantly outstrip supply, it said.

Riyadh has had limited new supply over the years, resulting in average rental prices and occupancy levels staying on the higher side. According to the CBRE report, Riyadh saw occupancy levels rising over the last quarter by 0.7 percentage points to reach 98.1 percent on average in the second quarter of 2022.

“Constrained supply levels have also continued to support growth in rental rates, where in the year to the second quarter of 2022, average Grade A and Grade B rents increased by 3.9 percent and 4.2 percent respectively,” the CBRE said in the report.

In Jeddah, with the Grade A segment of the market being landlord-favored, it said average rents have increased by 2.4 percent in the 12 months to June 2022.

Hospitality sector


Amid a massive push to develop the country's tourism and hospitality sectors, Saudi Arabia saw all the key performance indicators of hotels improving in the second quarter, with the average occupancy rate in the year to date to June 2022 increasing by 19 percentage points.

This helped hotels improve their average daily rates, which increased by 13.5 percent, resulting in their revenue per available room seeing massive growth of 72.8 percent over the same period last year, according to the CBRE report.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
Head of Gaza Aid Group Resigns Amid Humanitarian Concerns
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Netanyahu Accuses Starmer of Siding with Hamas
Calls Grow to Resume Syrian Asylum Claims in UK
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Denmark Increases Retirement Age to 70, Setting a European Precedent
Iranian Director Jafar Panahi Wins Palme d'Or at Cannes
Israeli Airstrike Kills Nine Children of Gaza Doctor
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
Mount Lewotobi Laki-Laki Erupts Again, Spewing Ash Cloud over Flores Island
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
Michael Jordan to Serve as Analyst for NBA Games
Senate Democrats Move to Censure Trump Over Qatar Jet Gift
Hamas Releases Last Living US Hostage from Gaza Amid Ongoing Conflict
×