Investment fuels growth across Saudi real estate sectors
This demand is driving prices and rental rates higher, a trend that is expected to continue, with the value of new residential mortgages in the Kingdom rising 17% year-on-year in 2024, satted CBRE in its latest edition of the Saudi Arabia Real Estate Market Review for Q4 2024.
The strong market growth is reflected in rising property values in Riyadh, with average prices increasing by over 6% in the past year, it added.
As new, high-quality units enter the market, prices are anticipated to continue to rise in 2025.
In Riyadh, the villa market has seen steady growth, with average prices now approaching SAR6,000 per sq m. In Jeddah, apartment values are slightly lower, averaging approximately SAR4,000 per sq m, while villa values are notably higher, reaching nearly SAR5,700 per sq m, it added.
On the office sector, CBRE said the demand for space remained strong through year-end 2024 in the Saudi capital, though transactional activity is now clearly being constrained by the lack of space for immediate lease and occupation.
The high occupancy rates across the capital's prime office districts reflect the strong prevailing demand, driven by the kingdom's thriving non-oil economy which is a key component of the government's Vision 2030 diversification strategy, it stated.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Insider
a day ago
- Gulf Insider
UAE Central Bank Imposes Over Dh370 Million In Fines On Banks, Exchange Firms, And Insurers
The Central Bank of the UAE has imposed more than Dh370.3 million ($101 million) in fines since the start of 2025 against banks, money exchange houses, insurers, and a finance company, in one of its most extensive enforcement campaigns in years, according to a review of official statements issued by the regulator. The penalties, also included license cancellations, suspensions, and restrictions on operations, were the result of the central bank's intensifying scrutiny of the country's financial sector, as it seeks to reinforce its credibility as a global financial hub and shed lingering reputational risks related to money laundering and terrorism financing. Since January, the regulator has announced penalties against at least 13 money exchange firms, seven insurance and brokerage companies, 10 banks, including three foreign lenders, and one finance company. In some cases, senior executives were personally fined, including one branch manager who was ordered to pay Dh500,000 and barred from holding specialized financial roles in the country. The most severe sanctions came in May, when the central bank imposed a Dh200 million fine on a money exchange company, alongside a Dh500,000 penalty against its branch manager. Earlier in the year, one firm was hit with a Dh100 million fine, while foreign banks were penalized with multimillion-dirham sanctions for compliance failures. In addition to monetary fines, the regulator revoked the licenses of several exchange houses, including Gomti Exchange and Al Hindi Exchange, and shut down branches of foreign insurers. It also forced one local bank to halt onboarding new Islamic banking clients for six months after inspectors identified significant compliance lapses. The penalties resulted from inspections that revealed violations in three areas: non-compliance with federal laws governing licensed financial institutions, weak anti-money laundering (AML) and counter-terrorism financing (CFT) systems, and breaches of consumer protection and market conduct standards. 'The Central Bank will not tolerate violations that undermine transparency, consumer protection, or the integrity of the financial system,' the regulator said, emphasizing its role in safeguarding stability in the UAE's banking and exchange sectors. 'While the central bank has long imposed penalties, the decision to publish details more consistently signals a commitment to transparency and to bolstering the efficiency of the financial system,' said Ahmed Youssef, a veteran banking analyst in Dubai. He added that the measures reinforce the UAE's position as a trusted regional and international financial hub, especially in the wake of the European Union's recent decision to remove the country from its list of high-risk jurisdictions for money laundering and terrorism financing. Another analyst, Amjad Nasr, noted that the crackdown reflects 'a proactive supervisory model' designed not just to punish, but to enforce corrections and upgrades within financial institutions. 'Despite clear regulatory roadmaps, some firms remain slow to modernize or fail to strengthen their compliance frameworks,' he said. 'In such cases, fines are not an end in themselves but a corrective tool to force accountability.' The UAE has long sought to balance its rapid economic growth with the need to meet international compliance standards. Failure to do so, experts warn, could risk blacklisting by global bodies, a move that would constrain cross-border banking operations and discourage foreign investment. The central bank's clampdown comes just months after the European Parliament's approval of removing the UAE from its 'high-risk' AML list, a development officials hailed as recognition of the country's improved regulatory regime.
Gulf Insider
2 days ago
- Gulf Insider
Saudi Arabia Allows Non-Resident Foreigners To Use Digital ID To Buy Property
Saudi Arabia will allow non-Saudi, non-resident foreigners to purchase property in the Kingdom using a digital identification system, following a Cabinet decision approved last week. The measure authorises the General Real Estate Authority, in coordination with the Ministry of Interior, the Saudi Data and Artificial Intelligence Authority, the National Information Centre and other relevant agencies, to develop mechanisms for activating the digital ID ahead of the rollout of the Non-Saudi Real Estate Ownership Law. The Cabinet also endorsed a governance framework for non-Saudi property ownership and usufruct rights, as recommended by the Strategic Committee of the Council of Economic and Development Affairs. This includes the formation of a specialised committee within the authority's board to oversee the sector. As part of the changes, the General Real Estate Authority's board has been restructured, with its chief executive now serving as chairman, alongside members from several ministries and three representatives from the private sector. The new ownership law, approved in July, will take effect in January 2026. In August, the authority issued draft executive regulations requiring non-resident foreigners to obtain and activate a digital ID through the government's Absher platform, open a Saudi bank account, and secure a local contact number before acquiring or using property in the Kingdom. The move aims to streamline transactions, strengthen regulatory oversight, and attract more foreign investment into Saudi Arabia's real estate market.
Gulf Insider
2 days ago
- Gulf Insider
Al Ain Court Orders Man To Pay Dh160,000 In Fake Investment Case
The Al Ain Civil, Commercial and Administrative Cases Court has ordered a man to pay Dh160,000 to another in connection with a fraudulent investment scheme. According to court documents, the plaintiff stated that the defendant convinced him he owned private companies and solicited funds to invest on his behalf. Believing the claims, the plaintiff handed over Dh150,000 in two instalments, documented by a signed receipt. Soon after, the defendant allegedly began avoiding communication and eventually stopped answering calls. A forensic accounting expert appointed by the court found that the defendant had proposed a partnership in trade and foodstuffs, acknowledged receiving the money, and entered into an informal investment agreement with the plaintiff. However, the defendant failed to honour the agreed terms, later claiming the capital had been lost and refusing to provide accurate partnership accounts. The court ruled in favour of the plaintiff, ordering repayment of the Dh150,000 principal along with Dh20,000 in damages. The judgment also included 12 per cent annual legal interest from the date of filing until full settlement, in addition to court fees and expenses.
