JLL has released its Q2 2016 Riyadh and Jeddah Real Estate Overview reports assessing the latest trends in the office, residential, retail and hotel sectors. With Saudi Vision 2030 pivotal to the diversification and restructuring of the economy in lieu of decreasing oil prices, this report highlights that both Riyadh and Jeddah continue to maintain an overall slowdown in performance. Mr. Jamil Ghaznawi, National Director and Country Head of JLL KSA, commented saying: "We have witnessed a general softening of the residential market this quarter, with a marginal  decline  in both rentals in Riyadh and sale prices in Jeddah. Further delays have been experienced in the completion of projects in Jeddah, despite increased efforts being made to address the shortage of affordable housing. The continuing slump in residential transactions (with sale volumes down a further 5% this quarter) shows the pace of demand growth is certainly now slowing. Riyadh is braced for an increase of housing supply, bringing the total stock of residential units to over 1 million units, whereas in Jeddah, supply remains stagnant in comparison to last quarter's findings.

However, with the White Land Tax being introduced earlier in June, the future development pipeline is likely to increase, which could  push both  land and housing costs down in 2017 and 2018." "In Riyadh, the office market observed  a marginal decrease in rental values in Q2 2016 and will continue to see downward pressure  as new stock enters the market, especially in the King Abdullah Financial District (KAFD) and the Information Technology and Communications Compound (ITCC). Meanwhile in Jeddah, project completions managed to stabilize the office performance rates in Q2. "The fluctuation in oil prices throughout the quarter has led to reduced corporate demand and government spending which has negatively impacted the  performance of the hotel sector in both Riyadh and Jeddah.  Hotel occupancies have declined in both markets, with two new hotels opening in Jeddah that have increased competition". In regards to the retail sector, lease rates in both markets have stabilized over the second quarter and Mr. Jamil commented saying: "The delivery of multiple projects in the coming quarters and slow demand evident by the decline of point of sales transactions in both cities, is likely to keep lease rates stable for the time being.

However with Saudi Vision 2030 in place, foreign investment into the Kingdom is likely increase, boosting the  retail sector in Jeddah in particular, over the long term." Even though there is mounting strain on both markets currently, the markets are likely to recover in the foreseeable future as Saudi government ambitiously takes new initiatives to stimulate the country."Indoor Led Wall Lights Uk Sector summary highlights  – Riyadh:Bedroom Sets Under 400 Dollars Sector summary highlights  – Jeddah:Baby Blue Tab Top Curtains Office: Saudi Vision 2030 was announced in April focusing on economic diversification and attracting foreign investment. This should increase demand for office space in Jeddah over the long run, which has traditionally relied on the construction and government sectors for demand.

Residential:  Increasing the Loan-to-Value Ratio (LVR) from 70% to 85% has yet to spur demand for residential sales as sale prices have continued to fall and demand remains soft. Data from the Ministry of Justice shows a decrease of almost 9% in the number of residential transactions year to May. Retail: The Council of Ministers approved the relaxation of foreign ownership controls from 75% to 100% of retail businesses in June. This announcement is in line with the Saudi 2030 Vision to increase foreign investment in the Kingdom. The first license, was issued under the new regulations in June to Dow Chemicals. Easier entry should encourage more international retailers to enter the market, which will assist in absorbing the upcoming supply. Hotels: A significant amount of new supply has opened over the past 18 months, attracted by the strong performance of the Jeddah market.  Most of these new entrants are concentrated in the 5 star category; increasing competition in the upscale segment where product differentiation will become an increasingly crucial success factor.

This diagram illustrates where JLL estimates each prime market is within its individual rental cycle at the end of the relevant quarter. *Hotel clock reflects the movement of RevPAR. Privacy Policy: We don't spam, we won't sell your details to anyone else and you can unsubscribe at any time.Follow Expat Focus on Facebook, Twitter, Pinterest and Google+ ±Financial Advice / Services Expert advice from professionals you can trustWhat Does It Take To Become An Expat? Some Things To ConsiderExpat Focus Financial Update 05 September 2016Should UK Expats In The UAE Transfer Their Pensions?Expat Focus Finance Update 29 August 2016Expat Focus Financial Update 22 August 2016Five Questions You Must Ask Your Expat Financial AdviserExpat Focus Financial Update 15 August 2016Charles Schwab Announces Account Closures For US Citizens In Five Countries, More ExpectedCommon Expat Investment Scams And How To Avoid ThemExpat Focus Financial Update 08 August 2016

Expat Focus International Healthcare Update 07 September 20165 Places Where Healthcare is Better Than The UKExpat Focus International Healthcare Update 24 August 2016Interview With Stephanie Eltz, Founder, DoctifyExpat Focus International Healthcare Update 02 August 2016The Ten Best Countries For Healthcare In EuropeExpat Focus International Healthcare Update 26 July 2016Expat Focus International Healthcare Update 19 July 2016 E-mail UsOFFICE HOURSSunday - Thursday(9am - 6pm) King and Spalding’s Middle East offices are located in Abu Dhabi, Dubai and Riyadh.  These offices are home to a team of internationally qualified lawyers who are consistently recognized by independent directories for being market leaders in their fields of expertise. The Middle East offices are recognized for its in depth knowledge and experience in capital markets, construction, corporate finance, energy, infrastructure projects, Islamic finance, dispute resolution and international arbitration, investment funds, mergers and acquisitions, private equity as well as real estate and hospitality.

Some of our practice area credentials include: Capital Markets: King & Spalding has advised on numerous equity and debt capital markets transactions. King & Spalding has a highly experienced debt capital markets and securitization team with a proven track record in advising and documenting both conventional and Islamic debt capital market securitization products covering both Regulation S and Rule 144A offerings.  The well regarded team has been involved in a number of high profile transactions. The team has advised and represented major players in the market including large financial institutions in their roles as lead managers and sovereigns, high profile corporates, supranational entities and financial institutions. The team also has a proven track record in advising on initial public offerings and rights issues on various classes of equity securities covering both Regulation S and Rule 144A offerings. Construction: King & Spalding has extensive experience in the MENA region assisting clients in negotiating all aspects of large-scale construction projects.

Our construction transactional lawyers focus on representing owners and developers, which gives our lawyers an in-depth understanding of the construction market and enables them to avoid potential conflicts of interest with contractors.  Many of the team’s lawyers are former engineers and have additional specialist construction qualifications.  Many of the team’s lawyers have previously advised contractors.  These lawyers bring an acute understanding of the issues that face contractors, which understanding can be invaluable when advising owners/developers in drafting and negotiating construction contracts.  Dispute Resolution and International Arbitration: King & Spalding’s dispute resolution and international arbitration practice is consistently ranked among the best by independent legal surveys. We handle disputes under the rules of all the major international and domestic arbitration centers as well as state courts in the GCC and the wider Middle East and North Africa region.

Our experts are recognized for resolving disputes for master developers, sovereigns, financial institutions, and a wide range of multinationals in disputes across various industry sectors, including construction, energy and infrastructure, financial services, and aviation. Members of our team also sit as mediators, adjudicators (or DAB members) or arbitrators.  As a result, we have in depth experience of relevant procedures and good case management techniques.  More significantly, we know the types of arguments that tribunals find attractive ensuring optimum case presentation for maximum success. Energy: King & Spalding has an award-winning global Energy practice.  Our lawyers offer clients years of experience on major oil and gas, petrochemicals and refining projects and transactions in the UAE, Saudi Arabia and the Middle East as well as internationally. King & Spalding was recently awarded “Energy Advisory Law Firm of the Year” by the Petroleum Economist, and our Middle East lawyers are consistently ranked as leading practitioners in their fields of expertise.

Our lawyers are well versed in the regulatory and commercial environment within the energy sector. We have advised on a number of major petrochemicals and refineries projects, including expansion projects, and we are currently working with some of the industry’s most significant entities. Islamic Finance: King & Spalding has a highly recognized and acclaimed Islamic finance practice, advising on a number of Shari’ah compliant product areas including plain vanilla financing, project financing, real estate finance, investment funds, sukuk issuances and private equity transactions.  Investment Funds: King & Spalding has the leading investment funds practice in the Middle East. Independent legal surveys regularly rank the practice among the top Middle East practices for investment funds work. Our Middle East investment funds practice and our individual Middle East lawyers are highly ranked in numerous categories in Chambers Global and The Legal 500. Since 2011, Chambers Global has ranked King & Spalding in “Band 1” for its Middle East investment funds practice.

Additionally, King & Spalding has advised on more funds authorized by the Saudi Arabian CMA than any other international law firm in the Middle East. Corporate, Mergers & Acquisitions and Private Equity: King & Spalding has a leading corporate, M&A and private equity practice.  Chambers Global  identified King & Spalding’s Middle East Corporate practice among the “Elite” in its latest guide and has consistently identified the firm’s Middle East Corporate M&A practice among the “Elite” firms in the region. The 2016 editions of both Chambers Global and Legal 500 recognize our leading Saudi Arabian corporate practice.   King & Spalding was awarded “Private Equity Law Firm of the Year” by Islamic Finance News in 2014. Our team continues to lead the market on some of the most innovative and precedent-setting deals and structures. Real Estate and Hospitality: King & Spalding has a market leading real estate and hospitality practice having advised some of the leading master developers in the world.

The team’s experience extends to advising on various mixed use developments and the related retail and hotel management agreements. The team has advised on some of the leading landmarks in the Middle East. King & Spalding’s team of lawyers have been handling client matters throughout the Middle East, Africa, Asia and parts of Europe as well as certain emerging market jurisdictions for more than 30 years. Chambers Global guide consistently ranks King & Spalding among the top law firms practicing in the Middle East. The firm received high marks in the 2016 edition for practices in the following areas: Middle East Corporate/ M&A Middle East Investment Funds Middle East Projects and Energy Middle East Capital Markets Middle East Islamic Finance Saudi Arabia Corporate/ Commercial Saudi Arabia Banking & Finance U.A.E. Banking & Finance Our clients include some of the most high-profile oil & gas, energy and power companies, banks and finance houses (both conventional and Islamic), sovereign wealth funds, sovereign states and multinationals.