The start of the implementation and application of white land fees has added a slow movement in the real estate market, and the followers" compass indicates that the demand for land and residential units is more in the northwest and northeast of Jeddah due to the presence of many vital projects as well as being the natural extension of Jeddah Governorate and the availability of land significantly until Dhahban area in the north and Durrat Al-Arous in the west.
Ministry of Housing projects in Jeddah
The Ministry of Housing projects in Jeddah represent one of the types of movement in the market as it has three residential projects There are many residential real estate projects that are being worked on in Jeddah, including the Ministry of Housing projects, of which there are three projects with a total of 15,005 housing units, the first is Jeddah Prince Fawaz housing, which is the largest and includes 7,661 housing units, the second is Jeddah Prince Fawaz North project with 3,124 housing units, and the third is the North Jeddah housing project with 4,220 housing units. As well as private sector projects such as the Kingdom Tower project in Northern Abhur, which will be the tallest tower in the world when completed.
In this direction, Hani Khashoggi, CEO of Shrek Real Estate Company, believes that the real estate market varies from one region to another in the size of demand and the level of demand for trading in land, residential and commercial units, their types and areas.
Growth in demand for residential products
If we take Jeddah governorate, we find that it is at the forefront of the Kingdom's cities in the volumes of trading on various types of residential and commercial real estate, as it has achieved during the past years a qualitative leap in the volume of demand for residential units of various sizes, as well as increasing the demand for residential commercial buildings, even during the recession experienced by the real estate market three years ago, as many different residential and commercial real estate deals were implemented, whether land or ready-made units such as apartments and villas, and the demand increases compared to the supply of ready-to-house units, and the demand for small and medium plots of land.
Khashoggi explains that according to the latest study issued by Shrek Real Estate Company in Jeddah Governorate within the studies it periodically conducts on the real estate market, which shows that the demand for residential and commercial real estate is witnessing a continuous increase despite the recession witnessed by the real estate market. The Jeddah governorate has shown a superiority in the volume of trading, both in terms of the value and number of transactions and the total trading of residential units. Khashoggi confirms that the demand for residential projects, furnished apartments, tourist resorts, markets and commercial complexes is boosted by the increase in the population as well as its strategic location between Mecca and Medina and the demand from visitors and tourists from nationals and residents during official vacations and official holidays.
Jeddah's total transaction value after Riyadh
Khashoggi adds that if we look at the index figures during the past years, we find that Jeddah governorate always comes after Riyadh in terms of total transaction values, for example, in 1435 it achieved a total amount of 83.5 billion riyals distributed between residential and commercial, of which 51.3 billion riyals for the residential sector and the sales of residential apartments about 3 billion riyals, villas 281 million riyals and the rest for land plots. The commercial sector achieved 32.1 billion riyals, of which 31.9 billion riyals for commercial lands.
In 1436 AH, the value of real estate transactions achieved an amount of 82 billion riyals, of which about 55 billion riyals for the residential sector, an increase from the residential deals in 1435 AH, the share of residential apartments 3 billion riyals and villas 240 million riyals. The rest is for land plots, while the commercial sector achieved SAR 27 billion in 1436 AH, and commercial land deals amounted to SAR 26.4 billion.
The index in Jeddah governorate this year 1437 AH in seven months achieved 49.3 billion riyals, of which 22 billion riyals for the residential sector and 27.3 billion riyals for the commercial sector.
