Riyadh Real Estate Market Overview second...
Transcript of Riyadh Real Estate Market Overview second...
Riyadh Real Estate Market Overview
The second quarter 2016
Prepared by: Market Studies & Research Department
July, 2016
1
Page No. Contents Serial
2 Riyadh City Overview 1
2 Riyadh Residential sector 1/1
11 Land sector in Riyadh 1/2
16 Riyadh Office sector 1/3
18 Riyadh Retail (commercial) sector & shopping centers 1/4
20 Riyadh Hotel sector 1/5
23 Kingdom of Saudi Arabia’s Vision 2030 (1452 H)1/6
26 White Land Fees1/7
32 CHESTERTONS*
2
1‐ Riyadh City Overview:
1 Riyadh population in 2004 (1425) 4,260,000
2 Riyadh population in 2016 (1437) 6,506,700
3 The percentage of Saudis in 2004 (1425) of the total population 66%
4 growth rate Population in Riyadh between 2004 – 2010 (1425‐1431) 4.2%
5 growth rate Population in Riyadh between 2010 – 2016 (1431‐1437) 4%
6 The difference in population number in Riyadh between the years 2016 ‐ 2004 )1425‐1437( 2,246,700
7 Percentage of the population that their age is less than 15 years 27%
8 Percentage of Saudis in Riyadh 64%
9 Percentage of non‐Saudis in Riyadh 36%
10 Indian nationality Percentage of total population 14%
11 Pakistani nationality Percentage of total population 12%
12 Percentage of house owners who have moved two or three times during their stay in Riyadh 70%
13 Percentage of house owners who have moved four to five times during their stay in Riyadh 10 %
1/1 Riyadh Residential Sector Overview:
1 The number of houses in Riyadh in in 2004 (1425) 704,000
2 The number of housing units in Riyadh in 2016 (1437) 1,217,996
3 Number of units built between 2004 – 2016 (1425 – 1437) 513,996
4 Number of families in Riyadh in in 2016 (1437) 1,116,339
5 Percentage of vacant housing units for the year 2016 8%
6 Villas Percentage of total residential units for the year 2016 52%
7 Apartments Percentage of total residential units for the year 2016 42%
8 Local buildings percentage of total residential units for the year 2016 2.5%
9 percentage of Saudis who own their homes 2016 56%
10 Percentage of Saudis who build their own houses through personal funds 2016 46%
11 Percentage of Saudis who build their houses through the Real Estate Development Fund 2016 30%
12 Percentage of Saudis who build their houses through private companies such as banks and real estate
companies 2016 21 %
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1/1/1 Apartments average rents in Riyadh:
26,935 SR is the Overall average rent for the apartments in Riyadh City, this average differs in Riyadh depending on location.
Table 1
Sector
Apartments rent (in SAR) Overall average for
every sector lowest price average
highest price average
Western Riyadh 20,650 29,800 25,225
Northern Riyadh 24,286 37,714 31,000
Central Riyadh 28,700 43,250 35,975
Eastern Riyadh 18,700 25,250 21,975
Southern Riyadh 16,895 24,105 20,500
Overall average 21,846 32,024 26,935
Overall average rent for apartments in Riyadh 26,935
Source: Field survey by CHESTERTONS
Chart 1
20,650
24,286
28,700
18,700
16,895
29,800
37,714 43,250
25,250
24,105
25,225 31,000 35,975
21,975
20,500
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Western Riyadh Northern Riyadh Central Riyadh Eastern Riyadh Southern Riyadh
Average lowest prices Average Highest price The overall average for each sector
4
This table shows the apartments rental prices in Riyadh (in SAR) :
Western Riyadh Northern Riyadh
To From District Name To From District Name
24,00017,000Laban 45,00027,000 Al Falah
25,00018,000Irqah 28,00020,000 Al Aqiq
50,00030,000Al Khozama 45,00030,000 Hittin
50,00030,000Al Nakheel 40,00027,000 Al Malqa
45,00027,000Al Mohammadeyah 35,00022,000 Al Nafl
45,00025,000Al Rahmaniyah 35,00025,000 Al Sahafah
24,00017,000Al Raid 40,00022,000 Al Yasmin
Eastern Riyadh Central Riyadh
To From District Name To From District Name
45,00035,000 Al Nasim Al Sharqi 45,00027,000 At Taawun
45,00035,000 Al Nasim Al Gharbi 70,00045,000 Al Wahah
45,00035,000 Al Nahdah 40,00025,000 Al Masif
45,00035,000 Ghirnatah 40,00025,000 King Fahd
45,00035,000 Al Munsiyah 45,00030,000 King Abdullah
45,00035,000 Al Hamra 45,00030,000 Salah Ad Din
45,00035,000 Al Yarmuk 45,00030,000 Al Izdihar
45,00035,000 Al Qadisiyah 45,00035,000 Al Nuzhah
40,00027,000 Al Muruj
Southern Riyadh 50,00030,000 Al Sulimaniyah
ToFrom District Name 45,00030,000 Al Wurud
30,00020,000Al Fayha 50,00030,000 Al Olaya
22,00015,000AL Shifa 35,00027,000 Jarir
19,00015,000Al Marwah 40,00025,000 Al Dhubbat
18,00015,000Badr
45,00030,000Al Hada
24,00017,000Al Badi'ah
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1/1/2 Villas average rents in Riyadh:
SAR 118,668 is the overall average rent for villas in Riyadh, this average differs in Riyadh City depending on location.
Table 2
Sector
Villas Rents (in SAR) Overall average for
every sector lowest price average
highest price average
Western Riyadh 84,500 142,000 113,250
Northern Riyadh 110,714 162,857 136,786
Central Riyadh 116,500 194,000 155,250
Eastern Riyadh 70,500 118,500 94,500
Southern Riyadh 72,368 114,737 93,553
Overall average 90,916 146,419 118,668
Overall average of villas rents in Riyadh 118,668
Source: Field survey by CHESTERTONS
Chart 2
84,500 110,714
116,500
70,500
72,368
142,000
162,857 194,000
118,500
114,737
113,250
136,786
155,250
94,500
93,553
0
50,000
100,000
150,000
200,000
250,000
Western Riyadh Northern Riyadh Central Riyadh Eastern Riyadh Southern Riyadh
Average lowest prices Average Highest price The overall average for each sector
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This table shows the Villas rental prices in Riyadh (in SAR):
Western Riyadh Northern Riyadh
To From District Name To From District Name
120,000 80,000 Laban 230,000 140,000 Al Falah
130,000 80,000 Irqah 130,000 90,000 Al Aqiq
220,000 140,000 Al Khozama 240,000 150,000 Hittin
240,000 140,000 Al Nakheel 200,000 140,000 Al Malqa
240,000 140,000 Al Mohammadeyah 140,000 90,000 Al Nafl
220,000 140,000 Al Rahmaniyah 160,000 120,000 Al Sahafah
240,000 150,000 Al Raid 160,000 100,000 Al Yasmin
Eastern Riyadh Central Riyadh
To From District Name To From District Name
80,000 50,000 Al Nasim Al Sharqi 180,000 90,000 Al Taawun
90,000 60,000 Al Nasim Al Gharbi 250,000 120,000 Al Wahah
100,000 70,000 Al Nahdah 150,000 90,000 Al Masif
140,000 80,000 Ghirnatah 150,000 90,000 King Fahd
120,000 70,000 Al Munsiyah 200,000 130,000 King Abdullah
180,000 90,000 Al Hamra 200,000 130,000 Salah Ad Din
120,000 70,000 Al Yarmuk 200,000 130,000 Al Izdihar
90,000 70,000 Al Qadisiyah 200,000 130,000 Al Nuzhah
250,000 140,000 Al Muruj
Southern Riyadh 250,000 150,000 Al Sulimaniyah
To From District Name 250,000 150,000 Al Wurud
160,000 120,000 Al Fayha 250,000 150,000 Al Olaya
90,000 60,000 AL Shifa 150,000 90,000 Jarir
90,000 60,000 Al Marwah 200,000 120,000 Al Dhubbat
90,000 60,000 Badr
250,000 150,000 Al Hada
120,000 70,000 Al Badi'ah
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1/1/3 Apartments average selling prices in Riyadh:
SAR 441,656 is the overall average selling price for Apartments in Riyadh, this average differs in all sides of Riyadh depending on location.
Table 3
Sector
Apartments selling prices (in SAR) Overall average for
every sector lowest price average
highest price average
Western Riyadh 336,500 514,000 425,250
Northern Riyadh 394,286 582,143 488,215
Central Riyadh 415,000 632,500 523,750
Eastern Riyadh 317,000 512,500 414,750
Southern Riyadh 296,842 415,789 356,316
Overall average 351,926 531,386 441,656
Overall average of apartments sales in Riyadh 441,656
Source: Field survey by CHESTERTONS
Chart 3
336,500
394,286
415,000
317,000
296,842
514,000
582,143
632,500
512,500
415,789
425,250
488,215
523,750
414,750
356,316
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Riyadh West Riyadh north Riyadh Central Riyadh east Riyadh South
Average lowest prices Average Highest price The overall average for each sector
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This table shows the apartment selling price across Riyadh (in SAR):
Western Riyadh Northern Riyadh
To From District Name To From District Name
450,000 270,000 Laban 600,000 450,000 Al Falah
450,000 350,000 Irqah 500,000 350,000 Al Aqiq
700,000 400,000 Al Khozama 700,000 450,000 Hittin
700,000 400,000 Al Nakheel 650,000 400,000 Al Malqa
650,000 400,000 Al Mohammadeyah 550,000 350,000 Al Nafl
650,000 400,000 Al Rahmaniyah 650,000 400,000 Al Sahafah
700,000 450,000 Al Raid 600,000 350,000 Al Yasmin
Eastern Riyadh Central Riyadh
To From District Name To From District Name
350,000 270,000 Al Nasim Al Sharqi 650,000 400,000 Al Taawun
450,000 300,000 Al Nasim Al Gharbi 900,000 550,000 Al Wahah
450,000 300,000 Al Nahdah 550,000 400,000 Al Masif
600,000 300,000 Ghirnatah 600,000 450,000 King Fahd
450,000 270,000 Al Munsiyah 700,000 450,000 King Abdullah
700,000 450,000 Al Hamra 600,000 400,000 Salah Ad Din
450,000 300,000 Al Yarmuk 600,000 400,000 Al Izdihar
350,000 250,000 Al Qadisiyah 700,000 450,000 Al Nuzhah
550,000 400,000 Al Muruj
Southern Riyadh 800,000 500,000 Al Sulimaniyah
To From District Name 700,000 450,000 Al Wurud
450,000 350,000 Al Fayha 700,000 450,000 Al Olaya
450,000 300,000 AL Shifa 550,000 350,000 Jarir
350,000 250,000 Al Marwah 550,000 350,000 Al Dhubbat
350,000 250,000 Badr
450,000 350,000 Al Hada
450,000 300,000 Al Badi'ah
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1/1/4 Villas average selling prices in Riyadh:
SAR 1,787,926 is the overall average selling price of villas in Riyadh. Table 4
Sector
Villas Sales (in SAR) Overall average for every sector The average
lowest price the average highest price
Western Riyadh 1,490,000 2,010,000 1,750,000
Northern Riyadh 1,678,571 2,221,429 1,950,000
Central Riyadh 1,589,000 2,615,000 2,102,000
Eastern Riyadh 1,480,000 1,990,000 1,735,000
Southern Riyadh 1,126,316 1,678,947 1,402,632
Overall average 1,472,777 2,103,075 1,787,926
Overall average selling price of villas in Riyadh 1,787,926
Source: Field survey by CHESTERTONS
Chart 4
1,490,000
1,678,571
1,589,000
1,480,000
1,126,316
2,010,000
2,221,429
2,615,000
1,990,000
1,678,947
1,750,000
1,950,000
2,102,000
1,735,000
1,402,632
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Western Riyadh Northern Riyadh Central Riyadh Eastern Riyadh Southern Riyadh
Average lowest prices Average Highest price The overall average for each sector
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This table shows Villas selling prices across Riyadh (in SAR) :
Western Riyadh Northern Riyadh
To From District Name To From District Name
1,700,000 1,300,000 Laban 2,500,000 1,800,000 Al Falah
2,000,000 1,600,000 Irqah 1,900,000 1,600,000 Al Aqiq
3,000,000 2,000,000 Al Khozama 3,000,000 1,900,000 Hittin
3,000,000 2,000,000 Al Nakheel 2,400,000 1,800,000 Al Malqa
2,400,000 1,800,000 Al Mohammadeyah 2,000,000 1,600,000 Al Nafl
2,400,000 1,800,000 Al Rahmaniyah 2,200,000 1,700,000 Al Sahafah
3,000,000 2,000,000 Al Raid 2,200,000 1,700,000 Al Yasmin
Eastern Riyadh Central Riyadh
To From District Name To From District Name
1,700,000 1,200,000 Al Nasim Al Sharqi 2,500,000 1,600,000 Al Taawun
1,700,000 1,300,000 Al Nasim Al Gharbi 3,000,000 2,000,000 Al Wahah
1,800,000 1,400,000 Al Nahdah 2,200,000 1,500,000 Al Masif
2,000,000 1,500,000 Ghirnatah 2,200,000 1,500,000 King Fahd
1,900,000 1,400,000 Al Munsiyah 3,000,000 1,800,000 King Abdullah
2,500,000 1,900,000 Al Hamra 3,000,000 1,800,000 Salah Ad Din
2,000,000 1,500,000 Al Yarmuk 2,500,000 1,700,000 Al Izdihar
1,600,000 1,200,000 Al Qadisiyah 2,500,000 1,700,000 Al Nuzhah
3,000,000 1,800,000 Al Muruj
Southern Riyadh 3,000,000 180,000 Al Sulimaniyah
To From District Name 3,000,000 1,800,000 Al Wurud
2,000,000 1,300,000 Al Fayha 3,000,000 1,800,000 Al Olaya
1,400,000 900,000 AL Shifa 2,500,000 1,500,000 Jarir
1,400,000 900,000 Al Marwah 2,500,000 1,600,000 Al Dhubbat
1,300,000 900,000 Badr
3,500,000 1,900,000 Al Hada
1,800,000 1,400,000 Al Badi'ah
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1/2 Land prices in Riyadh:
1/2/1 Selling Price for Residential land with single street frontage: Overall average selling price for Residential land overlooking on one street frontage in Riyadh is 2,150 SR/m2.
Table 5
Sector
Residential land with single street frontage (in SAR) Overall average
for every sector lowest price average
highest price average
Western Riyadh 1,750 2,000 1,875
Northern Riyadh 1,700 1,850 1,775
Central Riyadh 2,400 2,750 2,575
Eastern Riyadh 2,200 2,600 2,400
The general average 2,000 2,300 2,150
Overall average selling price for Residential land with single street frontage in Riyadh
2,150
Source: Field survey by CHESTERTONS
Chart 5
1,750
1,700
2,400
2,200
2,000
1,850
2,750
2,600
1,875
1,775
2,575
2,400
0
500
1,000
1,500
2,000
2,500
3,000
Western Riyadh Northern Riyadh Central Riyadh Eastern Riyadh
Average lowest prices Average Highest price The overall average for each sector
12
This table shows the selling prices for Residential land with single street frontage , across Riyadh (in SAR):
Western Riyadh Northern Riyadh
To From District Name To From District Name
1,400 900 Laban 3,000 2,500 Al Falah
1,900 1,700 Irqah 2,400 2,100 Al Aqiq
3,500 3,000 Al Khozama 3,300 2,800 Hittin
3,200 2,700 Al Nakheel 2,700 2,400 Al Malqa
3,500 2,800 Al Mohammadeyah 2,600 2,100 Al Nafl
3,000 2,800 Al Rahmaniyah 2,700 2,400 Al Sahafah
3,000 2,500 Al Raid 2,500 2,200 Al Yasmin
Eastern Riyadh Central Riyadh
To From District Name To From District Name
1,200 1,100 Al Nasim Al Sharqi 2,900 2,300 Al Taawun
1,400 1,100 Al Nasim Al Gharbi 3,900 3,500 Al Wahah
2,400 2,200 Al Nahdah 2,600 2,000 Al Masif
1,850 1,650 Ghirnatah 2,500 2,200 King Fahd
2,700 2,400 Al Munsiyah 2,900 2,300 King Abdullah
2,300 1,850 Al Hamra 3,000 2,500 Salah Ad Din
2,400 1,700 Al Yarmuk 3,300 2,700 Al Izdihar
1,200 1,100 Al Qadisiyah 3,300 2,800 Al Nuzhah
3,400 3,000 Al Muruj
Southern Riyadh 3,000 2,700 Al Sulimaniyah
To From Name district 3,000 2,600 Al Wurud
1,200 1,100 Manfuhah 3,300 2,700 Al Olaya
1,300 1,100 Ash Shifa 2,300 2,100 Jarir
1,100 1,000 Al Marwah 2,900 2,500 Al Dhubbat
1,200 1,000 Utaiqah
2,300 2,100 Al Hada
1300 1200 Al Badi'ah
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1/2/2 Selling Prices for Residential land with main road frontage and return: Overall average selling price for Residential land with main road frontage and return in Riyadh is 2,463 SR/m2.
Table 6
Sector
Residential land with main road frontage and return (in SAR) Overall average
for every sector average lowest price
average highest price
Western Riyadh 1,900 2,800 2,350
Northern Riyadh 1,900 2,250 2,075
Central Riyadh 2,600 2,900 2,750
Eastern Riyadh 2,500 2,900 2,700
The general average 2,225 2,700 2,463
Overall average selling price for Residential land with main road frontage and return in Riyadh City
2,463
Source: Field survey by CHESTERTONS
Chart 6
1,750
1,700
2,400
2,200
2,000
1,850
2,750
2,600
1,875
1,775
2,575
2,400
0
500
1,000
1,500
2,000
2,500
3,000
Western Riyadh Northern Riyadh Central Riyadh Eastern Riyadh
14
This table shows selling prices for Residential land with main road frontage and return, across Riyadh (in SAR):
Western Riyadh Northern Riyadh
To From District Name To From District Name
1,500 1,000 Laban 3,400 2,700 Al Falah
2,400 1,900 Irqah 2,700 2,400 Al Aqiq
3,800 3,500 Al Khozama 3,800 3,000 Hittin
4,000 3,200 Al Nakheel 3,400 2,700 Al Malqa
3,800 3,200 Al Mohammadeyah 2,700 2,600 Al Nafl
3,500 3,000 Al Rahmaniyah 2,800 2,500 Al Sahafah
3,500 3,000 Al Raid 2,800 2,500 Al Yasmin
Eastern Riyadh Central Riyadh
To From District Name To From District Name
1,300 1,200 Al Nasim Al Sharqi 3,200 2,500 Al Taawun
1,500 1,200 Al Nasim Al Gharbi 4,500 4,000 Al Wahah
2,700 2,400 Al Nahdah 2,800 2,300 Al Masif
2,100 1,850 Ghirnatah 2,800 2,400 King Fahd
3,500 2,600 Al Munsiyah 3,200 2,500 King Abdullah
2,500 2,000 Al Hamra 3,500 2,700 Salah Ad Din
1,800 1,000 Al Yarmuk 3,600 3,000 Al Izdihar
1,300 1,200 Al Qadisiyah 3,600 3,000 Al Nuzhah
3,600 3,200 Al Muruj
Southern Riyadh 3,400 3,000 Al Sulimaniyah
To From Name district 3,400 2,700 Al Wurud
1,300 1,100 Manfuhah 3,700 3,000 Al Olaya
1,500 1,200 Ash Shifa 2,500 2,200 Jarir
1,250 1,000 Al Marwah 2,800 2,400 Al Dhubbat
1,300 1,100 Utaiqah
2,700 2,400 Al Hada
1,700 1,400 Al Badi'ah
15
1/2/3 Commercial land in Riyadh:
Commercial (Retail) land located on main roads in Riyadh were sold between SAR 2,000 – SAR 23,000.
Table 7
(In SAR)
Average highest rate lowest rate Road
7,750 9,000 6,500 Eastern Ring Road
5,750 6,000 5,500 Western Ring Road
10,500 12,000 9,000 Northern Ring Road
7,500 8,000 7,000 Anas bin Malik Street
4,500 5,000 4,000 Khair Road
2,500 3,000 2,000 Kharj Road
20,000 23,000 17,000 King Fahd Road
7,750 8,500 7,000 King Abdul‐Aziz Road
Source: Field survey by CHESTERTONS
Chart 7
6,500
5,500 9,000
7,000
4,000
2,000
17,000
7,000
9,000
6,000
12,000
8,000
5,000
3,000
23,000
8,500
7,750
5,750
10,500
7,500
4,500
2,500
20,000
7,750
‐
5,000
10,000
15,000
20,000
25,000
Eastern RingRoad
WesternRing Road
NorthernRing Road
Anas binMalik Road
Khair Street Kharj Road King FahdRoad
KingAbdulazizRoad
the lowest rate the highest rate Average
16
1/3 Riyadh Office sector:
1/3/1 Current supply of administrative offices in Riyadh: The second quarter 2016 witnessed the development of a few administrative offices projects to be delivered within the next two years. It is worth mentioning that rental rates have seen a slight rise, Offices rents range between 400 SR/m2 up to 1,280 SR/m2 and sometimes up to about 1,700 SR/m2 in some distinctive towers in Riyadh.
Table 8
Offices rental prices across Riyadh (in SAR/Sqm)
Main Roads From to
King Fahd – North 800 1,200
King Fahd – Centre 900 1,250
Northern Ring Road 950 1,250
Eastern Ring Road 700 800
Khurais 700 850
Olaiya ‐ North 700 900
Olaiya ‐ centre 800 950
King Abdullah – Centre west 700 800
King Abdullah – East 550 700
Prince Mohammed Bin Abdulaziz ‐Tahlia 950 1,100
Takhasusi 650 850
Al Oruba 750 850
Salahuddin – Malaz 650 850
Othman Bin Affan 650 750
Source: Field survey by CHESTERTONS
17
1/3/3 Future supply of administrative offices in Riyadh (2016 – 2018):
It is expected that in 2016 the main completions will be the Information Technology & Communication Complex (ITCC) as well as Majdoul tower located on King Fahd Road will lead the market. The King Abdullah Financial District project expects further delays and is unlikely to provide any office space during the year 2016. The next table shows our projections for the total gross leasing offices areas within the next 3 years in Riyadh:
Table 9
Offices ‐ Project Name Total Rental Area (GLA in 000 Sqm)
Expected to start in
King Abdullah Financial District (KAFD) 800 2018 ‐ 2017
ITCC 230 2017
King Saud University Endowment Project (KSUE) 95 2018 ‐ 2017
Majdoul Tower 55 2017
Hamad Tower 31 2016
Others 100 2016 – 2017 ‐ 2018
Total GLA (000 Sqm) 1311 Till the end of 2018
Source: Field survey & analysis by CHESTERTONS
Chart 9
Offices Future supply in Riyadh (2016 – 2018):
800230
95
5531
100King abdullah Financial District(KAFD)
Information Technology &Communication Complex (ITCC)
King Saud University EndowmentProject (KSUE)
Majdoul Tower
Hamad Tower
Others
18
4/1 Riyadh Retail (Commercial) sector & Shopping Centers:
The rental for shops across the city ranges between 700 SR/Sqm and 1,200 SR/Sqm with average of 927 SR/Sqm, and it might exceed to 2,500 SR/Sqm for line shops in some premium malls.
1/4/1 Current supply ‐ rented spaces for shopping centers:
Total Retail rented spaces in the second quarter of 2016 reached approximately 1.47 million square meters, with growth of 600 Sqm more than was available at the end of year 2015.
Table 10
Growth rate Area rented – (in million
square meters) year
‐ 1.27 2013 Reached
8% 1.37 2014 Reached
3% 1.41 2015 Reached
4% 1.47 2nd quarter 2016 reached
Source: Field survey by CHESTERTONS
Chart 10
1.27
1.37
1.41
1.47
1.15
1.20
1.25
1.30
1.35
1.40
1.45
1.50
19
2/4/1 Future supply for the shopping centers in Riyadh (2016 ‐ 2021): It is expected new commercial centers will be established in Riyadh city such as Mall of Saudi, Deriyah Festival City Mall, The Avenues, and others, all of which represent an added rental area about 1,418,360 square meters, as shown in the following table :
Table 11
Upcoming Retail Project Expected GLA (Sqm)
Mall of Saudi ( Majid Al Futtaim ) 300,000
Deriyah Festival City Mall 250,000
The Avenues ( Al Shaya Group ) 200,000
Arabia Plaza 164,360
City Center Ishbiliah ( Majid Al Futtaim ) 100,000
Riyadh Park 92,000
KAFD 88,000
AlHamraa Mall 52,000
ITCC 50,000
Malaz Mall 49,000 Khaleej Mall 43,000
Boulevard Mall 30,000
Total Expected GLA 1,418,360
Source: Field survey & analysis by CHESTERTONS
Chart 11
Future supply for the rental spaces within the upcoming shopping centers in 2016 ‐ 2021
300,000
250,000
200,000
164,360
100,000
92,000
88,000
52,000
50,00049,000 43,000 30,000
Mall of Saudi ( Majid Al Futtaim )
Deriyah Festival City Mall
The Avenues ( Al Shaya Group )
Arabia Plaza
City Center Ishbiliah ( Majid Al Futtaim )
Riyadh Park
KAFD
AlHamraa Mall
ITCC
Malaz Mall
Khaleej Mall
Boulevard Mall
20
It is worth mentioning that there are two big projects were contracted and
approved in North Riyadh, and it is expected to be finished by 2021 – 2022:
The first project is "The Avenues" one of Mabanee (Alshaya Group) projects,
with a total area of 391, 000 m² Northern Riyadh, at a cost of about 6.5 billion
SAR, the project includes a shopping mall and two hotels with 500 rooms,
and residential buildings include 1050 residential unit and a medical building
contains 240 medical clinic.
The second project is "Mall of Saudi" one of Majid Al Futtaim Group
projects, at a cost of about 10.5 billion SAR, with a total area exceeding 866
thousand square meters include one of the largest indoor ski resorts in the
world, the project is scheduled to include 300,000 Sqm for shops,
restaurants, leisure facilities, luxury condominiums, offices, showrooms,
luxury hotels and serviced apartments as well as other public facilities.
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5/1 Riyadh Hotel sector:
1/5/1 Current supply of hotel rooms in Riyadh: There is stability in the supply of hotel rooms in Riyadh reached about (10,700) rooms during the second quarter of 2016, which showed a percentage increase in the number of rooms 2%, As shown in the following table: ‐
Table 12
growth rate Number of rooms Year
9,500 2013 reached
4% 9,900 2014 reached
6% 10,500 2015 reached
2% 10,700 Q2 – 2016 reached
Source: Field survey by CHESTERTONS
Chart 12
9,500
9,900
10,500
10,700
8,800
9,000
9,200
9,400
9,600
9,800
10,000
10,200
10,400
10,600
10,800
2013 2014 2015 First quarter 2016
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1/5/2 Future supply of hotel rooms in Riyadh: It is expected that the future supply of hotel rooms in Riyadh at the end of the third quarter of 2016 will increase by about 3,100 rooms, and the supply is expected to reach up to 17,400 room at the end of 2018, which shows a growth rate of % 83 more than 2013 (was 9,500 room).
Table 13
The expected growth rate
Number of rooms year
13,100 The second half of 2016
21% 15,900 2017
9% 17,400 2018
Source: Field survey by CHESTERTONS
Chart 13
The Projected Future supply for hotel Rooms
13,100
15,900
17,400
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
2016 2017 2018
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1/5/3 Hotels under construction in Riyadh: There are many 5 star Hotel projects in the pipeline and will be completed in upcoming years as follows:
Table 14
Completion date No. of keys
project name No.
2018 220 InterContinental (King Abdullah Financial District) 1 2016 225 Aloft Riyadh 2 2016 288 Fairmont Hotel 3 2016 241 Hilton (KSU)( 4 2016 135 Nobuo Riyadh 5 2016 362 Crown Plaza 6 2017 830 Hilton Riyadh Hotel (Residence Granada) 7 2017 232 Le Meridien 8 2018 252 Radisson Blu 9 2017 210 Wyndham Hotel (King Abdullah Financial District) 10 2017 200 Court Yard Hotel Al Olaya 11 2019 295 Hyatt Regency Hotel 12
Source: Field survey by CHESTERTONS
Chart 14
Hotels under construction in Riyadh city
InterContinental (King Abdullah
Financial District), 220
Aloft Riyadh, 225
Fairmont Hotel, 288
Hilton (KSU)), 241
Nobuo Riyadh, 135Crown Plaza, 362
Hilton Riyadh Hotel (Residence
Granada), 830
Le Meridien, 232
Radisson Blu, 252
Wyndham Hotel (King Abdullah
Financial District, 210
Court yard Hotel Al Alia, 200
Hyatt Regency Hotel, 295
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1/6 Kingdom of Saudi Arabia’s Vision 2030 (1452 H): The Council of Ministers Approved a new a comprehensive and ambition vision of Kingdom of Saudi Arabia based on three PILLARS which are as follows:
1. The heart of the Arab and Islamic world.
2. A global investment powerhouse.
3. A global hub connecting three continents, Asia, Europe and Africa
These pillars will provide better opportunities for partnerships with the private sector. The Kingdom will improve the business environment, so that its economy grows and flourishes, driving healthier employment opportunities for citizens.
1/6/1 THEMES AROUND WHICH THE KSA VISION IS BUILT:
1. A Vibrant Society focuses on the importance of building a vibrant society in which members live in accordance with the Islamic principle of moderation, enjoy a good life supported by an empowering social and health care system ، commitments and goals this theme as follows :
To increase the capacity to welcome Umrah visitors from 8 million to 30 million every year.
To more than double the number of Saudi heritage sites registered with UNESCO. To have three Saudi cities be recognized in the top‐ranked 100 cities in the world. To increase household spending on cultural and entertainment activities inside the
Kingdom from the current level of 2.9% to 6%. To increase the ratio of individuals exercising at least once a week from 13% of
population to 40%. To raise the position from 26 to 10 in the Social Capital index. To increase the average life expectancy from 74 years to 80 years
2. A Thriving Economy, that focuses on creating a thriving economy that provides opportunities for all by building an education system aligned with market needs and creating economic opportunities for the entrepreneur, the small enterprise as well as the large corporation, develop investment tools to unlock our promising economic sectors, diversify the Saudi economy, create job opportunities, improve the business environment to leverage the unique strategic location ، commitments and goals this theme as follows:
To lower the rate of unemployment from 11.6% to 7%. To increase SME contribution to GDP from 20% to 35%. To increase women’s participation in the workforce from 22% to 30%. To move from the current position as the 19th largest economy in the world into the
top 15.
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To increase the localization of oil and gas sectors from 40% to 75%. To increase the Public Investment Fund’s assets, from SAR 600 billion to over 7 trillion. To rise from the current 25th position to the top 10 countries on the Global
Competitiveness Index. To increase foreign direct investment from 3.8% to the international level of 5.7% of
GDP. To increase the private sector’s contribution from 40% to 65% of GDP. To raise the global ranking in the Logistics Performance Index from 49to 25 and ensure
the Kingdom is a regional leader. To raise the share of non‐oil exports in non‐oil GDP from 16% to 50%.
3. An Ambitious Nation In order for the KSA to be an ambitious nation, the public sector and the government will lead changes to promote effectiveness, transparency, accountability and enabling high‐performance ,commitments and goals this theme as follows:
To increase non‐oil government revenue from SR163 billion to SR1 Trillion. To raise the ranking in the Government Effectiveness Index, from 80 to 20. To raise the ranking on the E‐Government Survey Index from our current position of
36 to be among the top five nations. To increase household savings from 6% to 10% of total household income. To raise the non‐profit sector’s contribution to GDP from less than 1% to 5%. To rally one million volunteers per year (compared to 11,000 now).
1/6/2 HOW TO ACHIEVE THE VISION? Many transformative programs that have paved the way for the Vision have already been launched and will help achieve the goals, including: The Government Restructuring Program. The Strategic Directions Program. The Fiscal Balance Program. The Project Management Program. The Regulations Review Program. The Performance Measurement Program.
To ensure the realization of Saudi Arabia’s Vision 2030, a set of executive programs that will have a significant impact on implementation are being prepared and will be launched in due course, including:
The Saudi Aramco Strategic Transformation Program. The Public Investment Fund Restructuring Program. The Human Capital Program. The National Transformation Program. The Strategic Partnerships Program. The Privatization program. The Program for Strengthening Public Sector Governance.
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1/7 White Land Fees:
1/7/1 The initiatives taken by Ministry of housing to assist the landowners in their Land development process:
Collect all relevant development actors under one roof to facilitate the
procedures. Opportunity to sell raw lands on the map. The Ministry of Housing initiated “WAFI Program” to simplify the
development process, and the Ministry's efforts in co‐operation with the private sector to provide developers to help the landowners who are wishing to develop their land.
1/7/2 Evaluation mechanism for the white lands: Land is assessed in accordance with the site and services and other utilities and activities, the landowner has the right to object to the fees within 60 days from the date of registration, any false information given by the landowner is fraud. In case of impediments or obstacles the fees do not apply to the land, Heirloom land is subjected to fees.
1/7/3 How to specify developed land: When the final maps are issued from the official authorities then it’s defined as developed land, any rental is not exempted from paying fees on such land.
1/7/4 How to calculate Taxes and “Zakat” together: No final deduction for that matter, and a competent Committee will be formed to look at this issue.
1/7/5 The Geographic scope boundaries that is targeted to apply fees in the first phase of white land system: The range includes undeveloped Plots areas in Riyadh, Jeddah and Dammam, including undeveloped Plot area designated for only residential use or commercial residential use; for plots that are 10 thousand square meters or more, within the geographical scope that is shown in the following maps
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28
29
30
1/7/6 Stages of white land fees according to the Executive Regulation:
First stage: 10, 000 m² and above in undeveloped land. Second stage: 10, 000 m² and above in developed land for one owner in one scheme. Third stage: 5, 000 m² and above in developed land for one owner in one scheme. Fourth stage: 10, 000 m² and above in developed land for one owner in one city.
Once announcing and starting any stage, the process cannot go to another stage unless completing 18 months at least, each stage will be announced immediately after the Minister's approval to begin. In the case of non‐application of certain stage on any of the cities, or not in a certain stage to Achieving a balance between supply and demand, the Minister may overcome this stage and move to the next. The Developers Service Center “ITMAM” is now activated, this center has to end all necessary licenses from a One Stop Shop, if there are any obstacles from the authorities and not by the owner, the owner has the right to file a complaint and provide proof of his right, in order not to be charged for any bills or fines or other.
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1/1/7 The implementation mechanism: Landlord has six months for registration. The landowner who provides false information will be under penalty of
law (by the relevant authorities). Bills will be issued on the landowners after 6 months of registration. The landowner have one year from the registration date (about 18
months) to complete and to register the final Drawings and layout of the land, in‐order not to be charged for that year, in case of the development is completed in two years, the landowner will be charged for the first year only and the fees will be canceled in the second year upon delivery.
In the case of non‐payment in a specific period of time, the landowner will be considered violating the law and will be subject to the penalty of law.
Landowner whose bill was issued, has the right to object at a maximum of 60 days, and is answered within 60 days from the date of the objection.
That isn't answered within this period, it shall be considered rejected, and landowner must pay the fees.
1/1/8 The lands definition according to the Executive Regulation:
Undeveloped land: Is a raw land, land that is either does not have a license or is under development. The final maps and the license must be adopted and issued from the municipality and/or other official authorities to be considered as a developed land.
Unused land (Space land): Land that is not developed, or not developed for the purpose it was allocated for.
White land: Land dedicated to either residential use or residential commercial use within the urban boundary.
Developed land: Land where final maps and the license have been adopted by the competent authorities.
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CHESTERTONS One of the oldest firms of Property Consultants in the world. Founded in London in 1805. Over 65 offices in 15 Countries on 5 Continents. At the forefront of expanding International Standards. Permanent regional presence in the Middle East and North Africa established in 2008 Operational office established in the Kingdom of Saudi Arabia. Servicing property requirements within Saudi Arabia, the Middle East Region and Internationally.
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Contact us :
Ahmad Ababatain Mark Morris Jones Mostafa Sewellam Abdulkarem Bawazir
Managing Director, KSA Director & Country
Manager, KSA
Market Studies & Research
Manager., KSA Valuation Manager, KSA
ahmad.ababatain@chestertons‐
mena.com
mark.morrisjones@chestertons‐
mena.com
mostafa.sewellam@chestertons‐
mena.com
abdulkarem.bawazir@chestertons‐
mena.com
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