| 07 Oct 2008 |
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Colliers launches pioneering Saudi Arabia Real Estate Overview
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Key to the kingdom: perceptions begin to change as Saudi Arabia real estate market expects further growth across all sectors
7th October 2008, Dubai UAE: Colliers International, the global real estate consultancy, today launched its Saudi Arabia Real Estate Overview. The pioneering report is the most comprehensive country overview of its kind and provides comparative key performance indicators across four areas: Riyadh, Jeddah, Mecca and the Eastern Province. According to the report the demand-supply dynamic remains very positive, with robust economic growth patterns set to continue, underpinned by high oil prices and rapid industrial expansion promoted by accession to the World Trade Organisation (WTO).
While Dubai and Abu Dhabi remain the region's largest property centres, Saudi Arabia is emerging as the real estate market to watch. Although perception of the country is mixed with regards to accessibility for investors, the kingdom's continuing efforts at refining its investment environment earned it the top regional ranking in the World Bank's 2009 Doing Business Report.
"Saudi Arabia is an interesting market to watch because it has one of the most inwardly serving property sectors in the MENA region," said Imad Damrah, Country Director Saudi Arabia, Colliers International.
"With a quarter of the world's total oil reserves, the government is in an excellent position to diversify economic activity as epitomised by the launch of four economic cities with two more to follow shortly. The kingdom remains a prime opportunity for investors and developers offering the largest market in the GCC and a population set to grow from 25 million to 33 million by 2020," he added.
According to Colliers, Saudi Arabia offers growth potential across all industry sectors and an encouraging outlook for the future. It says the opportunities in the kingdom are being fuelled by strong demographic and economic drivers, a general lack of supply across retail, residential, commercial and hospitality sectors, coupled by the government's determination to diversify the economy and promote investment leads.
- Villas and other single unit accommodation dominate Riyadh residential stock, accounting for a 39% market share, followed by the apartments sub-market with a share of 36%.
- The long-awaited mortgage law is expected to boost pure investor and owner-occupier activity and will serve as a core catalyst in Riyadh's market where only 22% of its population is owner -occupiers.
- The Riyadh Development Authority forecasts an annual demand for 30,000 new residential units for the next 15 years.
- Average occupancy rate for class A office space reached 90%, whereas for class B it is 74% in Riyadh.
- Additional office space supply of 190,000 m2 concentrated in the primary CBD areas in Riyadh, of which 37% of the total forthcoming supply is expected to be delivered during the remainder of 2008.
- Demand for office space in Riyadh driven by improvements in the business environment and expected annual private sector growth of 5% over the next three years.
- Substantial growth in Riyadh's shopping mall GLA over the next four years, with an additional 640,000 m2 of retail expected to be delivered in 2012.
- Hospitality sector for Riyadh has second highest growth operating profit per available room in the region, and strong performance growth driven by corporate demand.
- All the Kingdom's main cities have achieved average occupancy rates beyond 70%, and in some cities reached 80%.
If you would like to request a copy of the Saudi Arabia Real Estate Overview, contact ksareport@colliers-me.com or visit the Colliers International stand at Cityscape Dubai 2008:
Dubai International Exhibition Centre, Hall 7, Stand 7e40.
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About Colliers International UAE
Colliers International established an office in the UAE in November 1996. The Company was formed under a joint venture with The National Investor, which is a wholly owned UAE investment bank and corporate financial advisory company.
As part of the Colliers Global network, its Middle East offices offer a full range of real estate consultancy services in all major market sectors covering offices; retail; residential; and hotel properties.
With a staffing compliment of over 100, and a multi lingual team of real estate professionals Colliers prides itself on its ability to offer a truly in-depth professional service gained from many years of active involvement in the Middle East real estate sector.
Agency Contact
Theo Hildebrand, d'pr
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Email: theo@d-pr.ae
Eleanor Jack, d'pr
Tel: + 971 4 3311104
Mob: + 971 50 1033161
Email: eleanor@d-pr.ae
© Press Release 2008
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