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According to the latest CBRE report, the residential market in Saudi Arabia showed significant growth momentum in the first quarter of 2024. The report indicates that residential sales transactions in Riyadh grew by 77% year-on-year, reflecting a strong upward trend in market demand. Similarly, Jeddah saw a notable increase of 92.9% in residential transactions, while Dammam increased by 28.0%.

Taimur Khan, CBRE's Head of Research for the Middle East and North Africa, noted, "While Saudi Arabia's commercial real estate market has consistently performed well, a trend that continues, we are now witnessing significant growth in residential market demand. This growth not only supports the residential market itself but also positively impacts overall market performance."

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With new residential projects expected to be delivered gradually, market supply is set to increase. However, demand may continue to outstrip supply. Taimur Khan further added, "We anticipate some differentiation in the market, particularly for high-quality residential properties, which may set new price records."

Specifically, villa markets in Riyadh, Jeddah, and Al Khobar showed price increases of 3.6%, 0.2%, and 3.1%, respectively. In the apartment market, Riyadh, Dammam, and Al Khobar also saw varying degrees of price growth, despite a slight decrease in apartment prices in Jeddah.

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In the office market, although the rental growth rate has slowed, positive growth trends continue. Premium rents in Riyadh increased by 14%, while Class A and B office rents rose by 10.3% and 11.8%, respectively. Significant increases in Class A office rents were also observed in Dammam and Al Khobar.

Regarding the hotel market, occupancy rates for Class A hotels in Dammam and Al Khobar were 86.3% and 85.2%, respectively, while Riyadh's hotels across all categories reported even higher occupancy rates, indicating a healthy state of the Saudi Arabian hotel market.