weaker oil prices weigh on dammam real estate market
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Weaker oil prices weigh on Dammam real estate market

Arab Today, arab today

Arab Today, arab today Weaker oil prices weigh on Dammam real estate market

Dammam’s residential sector
Dubai - Arab Today

Dammam’s real estate market may be poised for a correction, as weaker global crude prices and a weaker economic expansion have weighed on the Kindom’s oil hub.
Property consultancy JLL, in its review of the Dammam Metropolitan Area (DMA) market said: “The DMA real estate market has suffered for the decline in oil revenues and the subsequent slowdown in the Kingdom’s economic growth over the past year.”
“All sectors the real estate market appear to have peaked over the past year and are now poised in the early downturn stage of their market cycle, with rents and prices generally experiencing a small decrease.”
Dammam’s residential sector posted a marginal decline in both sale prices and rentals over the past six months because of a steady hike in the inventory of available units, which JLL said grew an average of about 6,000 units a year between 2014 and 2016.
Average sale prices for villas dipped 2 percent while prices for apartments fell 1 percent over the past six months, while rentals for villas declined 2 percent and rates for apartments were cut by 4 percent.
The Saudi government under its Vision 2030 plan aims to increase the rate of home ownership among citizens by 5 percentage points to 52 percent by 2020. A government initiative is expected to provide 1.5 million housing units in the next five years.
The office sector meanwhile continued to suffer from subdued demand amid steady supply wherein, during the first the half, about 48,000 square meters of space was added to the market.
“This has increased vacancies to 38 percent, the highest level of any major city in the Kingdom and has shifted the market in favor tenants,” JLL said.
Rents however have not fallen dramatically, with the rates down by only 3 percent to SR1,014 per square meter. There is however pressure for steeper cuts in the face of further increases in vacancies.
Dammam’s retail stock meanwhile was almost stagnant, with only about 96,000 square meters added during the first half to boost the aggregate supply to 1.1 million square meters.
JLL noted only about 68,000 square meters of space were completed between 2014 and 2016, or an average of 23,000 square meters a year.
Retail rents will be unchanged for the next 12 months, the consultancy added, although the completion of the Dharan Boulevard (60,000 square meters) and Dammam Mall (54,000 square meters) mall projects by 2019 could exert downward pressure on prices.
Dammam’s hotel sector, highly dependent on travel related to the oil and gas sector, has softened during the past year with occupancies falling by as much as 10 percent, JLL said.
The additional supply of hotel rooms in the market, which resulted in higher vacancies and price competitions, likewise contributed to the weakness, the consultancy added.

Source: Arab News

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

weaker oil prices weigh on dammam real estate market weaker oil prices weigh on dammam real estate market

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

weaker oil prices weigh on dammam real estate market weaker oil prices weigh on dammam real estate market

 



GMT 16:16 2014 Wednesday ,10 September

Samirah Ibrahim receives Saudi cultural attaché

GMT 09:32 2017 Sunday ,24 September

China confirms will limit oil exports to North Korea

GMT 19:56 2016 Saturday ,17 September

Typhoon Meranti death toll rises to 28

GMT 09:40 2018 Monday ,01 January

OIC Summit opens in Kazakhstan

GMT 06:37 2015 Monday ,07 December

Iran film directors protest colleague's jail term

GMT 18:37 2017 Friday ,25 August

Mental health issues should be prioritized

GMT 04:39 2017 Thursday ,31 August

Trump vows to right 'self-destructive' tax code

GMT 05:29 2017 Tuesday ,22 August

Celebrations across India on 71st Independence Day

GMT 10:54 2017 Wednesday ,11 October

Child obesity grows tenfold since 1975

GMT 02:31 2016 Tuesday ,06 December

Dubai Women Establishment delegation participates

GMT 04:29 2018 Wednesday ,19 September

North and South Korea: Kim and Moon hail new future

GMT 14:18 2013 Monday ,19 August

Newlywed Lebanese couple pose at car bomb site

GMT 11:11 2011 Friday ,12 August

Palestinian university ranks seventh in Arab world

GMT 15:16 2015 Wednesday ,26 August

UAE ambassador attends charity ceremony in Qalubiya

GMT 16:59 2016 Tuesday ,26 July

Hedge funds in new cycle of oil short-selling
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday