Jeddah property market delivers mixed performance

The Jeddah property market is delivering a mixed performance, according to new research from Jons Lang LaSalle.

The JLL report shows that around 12,000 residential units have been completed across Jeddah so far this year, with a similar level of new supply expected over the rest of the year.

Citywide, villa prices have increased by 4.5 per cent over Q2, due to villa prices increasing in the Western Districts. Otherwise, villa prices have remained relatively stable in Q2 but have fallen by as much as 20 per cent over the year.

This decline is attributed to new mortgage restrictions and slowdown in transactions. Indeed, data from the Ministry of Justice show that total sales fell 28 per cent in the last quarter compared to the same period a year ago.

The apartment market generally performed better than the villa sector, with sale prices and rents increasing by 11 per cent and 14 per cent respectively over the past year.

"While all sectors of the Jeddah market remain in the upturn stage of their cycle, hotels and retail appear closer to the peak than office and residential, where further rental growth may be experienced over the rest of 2015," reads the report.