Jeddah Commercial Real Estate Market Size (2024 - 2029)

The Jeddah Commercial Real Estate Market is poised for significant growth over the forecast period, driven by the city's strategic location as a port hub and its status as a major industrial activity center. The market's expansion is further supported by the increasing demand for commercial spaces, influenced by high visitor attractions and events that boost occupancy rates. The supply side is also experiencing growth, with a substantial increase in hotel keys anticipated, enhancing the market's capacity to accommodate rising tourism and business activities.

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Market Size of Jeddah Commercial Real Estate Industry

Jeddah Commercial Real Estate Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 2.26 Billion
Market Size (2029) USD 3.98 Billion
CAGR (2024 - 2029) 9.88 %
Market Concentration Low

Major Players

Jeddah Commercial Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

Jeddah Commercial Real Estate Market Analysis

The Jeddah Commercial Real Estate Market size is estimated at USD 2.26 billion in 2024, and is expected to reach USD 3.98 billion by 2029, growing at a CAGR of 9.88% during the forecast period (2024-2029).

  • Jeddah is the largest city in Makkah Province, the largest city in Hejaz, the second-largest city in Saudi Arabia, and the ninth-largest city in the Middle East. It had a population of about 3,751,722 as of 2022. On the Red Sea, Jeddah Islamic Port is the thirty-sixth largest seaport in the world and the second-largest and second-busiest seaport in the Middle East (after Dubai's Port of Jebel Ali).
  • The strategic location of Jeddah as a port city makes it a hub for industrial activity. Investing in industrial real estate, such as factories or warehouses, can be profitable.
  • Attractions like the Islamic Art Biennale, which attracted more than 600,000 visitors, have broken regional records regarding the number of visitors to the Biennale. As a result, the average occupancy rate in Jeddah increased to 64% between January and June of 2023, representing a 16% increase compared to 2022.
  • On the supply side, there are currently around 12,700 hotel keys in stock, and it is estimated that by 2025, this number will increase to about 6,000. There are hotels such as the Rixos with 175 keys and Four Seasons with 270 keys included in this supplementary supply.

Jeddah Commercial Real Estate Industry Segmentation

Commercial real estate (CRE) refers to non-residential property that serves to generate income. This includes shopping malls, hotels, and office spaces.

A complete background analysis of Jeddah’s commercial real estate market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact is included in the report.

Jeddah’s commercial real estate market is segmented by type (offices, retail, industrial, logistics, multi-family, and hospitality). The report offers market size and forecasts for Jeddah’s commercial real estate market in value (USD) for all the above segments.

By Type
Offices
Retail
Industrial
Logistics
Multi-family
Hospitality
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Jeddah Commercial Real Estate Market Size Summary

The Jeddah commercial real estate market is poised for significant growth, driven by its strategic location as a major port city and its status as a hub for industrial activity. The city's burgeoning population and its position as a key economic center in Saudi Arabia contribute to the increasing demand for commercial properties. The market is characterized by a robust demand for office spaces, particularly Grade A and B, with high occupancy rates and rising rental prices. The influx of businesses, especially those linked to the public sector, is fueled by large-scale projects and the city's vibrant business environment. Additionally, the hospitality sector is witnessing an expansion in supply, with new hotels and accommodations being developed to cater to the growing number of visitors and business travelers.

The competitive landscape of Jeddah's commercial real estate market is marked by the presence of several prominent development companies and strategic partnerships aimed at enhancing the city's infrastructure. Initiatives such as the development of automated warehouses and logistics parks underscore the city's commitment to modernizing its commercial real estate offerings. The collaboration between public and private entities, such as the partnership between Modon and Al Bandar Company, highlights the focus on creating intelligent logistical solutions to support industrial and retail investments. As the market continues to evolve, factors such as location, construction costs, and the reputation of developers will play crucial roles in shaping the competitive dynamics and future growth of Jeddah's commercial real estate sector.

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Jeddah Commercial Real Estate Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Spending on the Commercial Construction

    3. 1.3 Market Restraints

      1. 1.3.1 Materials and Labor Shortages

    4. 1.4 Market Opportunities

      1. 1.4.1 Government Support

    5. 1.5 Value Chain / Supply Chain Analysis

    6. 1.6 Insights into Existing and Upcoming Projects

    7. 1.7 Insights into Capital Market Penetration and REIT Presence in Commercial Real Estate

    8. 1.8 Commercial Real Estate Buying Trends - Socio-economic and Demographic Insights

    9. 1.9 Porter's Five Force Analysis

      1. 1.9.1 Threat of New Entrants

      2. 1.9.2 Bargaining Power of Buyers/Consumers

      3. 1.9.3 Bargaining Power of Suppliers

      4. 1.9.4 Threat of Substitute Products

      5. 1.9.5 Intensity of Competitive Rivalry

    10. 1.10 Impact of COVID-19 on the market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Offices

      2. 2.1.2 Retail

      3. 2.1.3 Industrial

      4. 2.1.4 Logistics

      5. 2.1.5 Multi-family

      6. 2.1.6 Hospitality

Jeddah Commercial Real Estate Market Size FAQs

The Jeddah Commercial Real Estate Market size is expected to reach USD 2.26 billion in 2024 and grow at a CAGR of 9.88% to reach USD 3.98 billion by 2029.

In 2024, the Jeddah Commercial Real Estate Market size is expected to reach USD 2.26 billion.

Jeddah Commercial Real Estate Market Report Snapshots

Jeddah Commercial Real Estate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2024 - 2029)