News roundup: Saudi Arabia’s housing market resilient despite slowdown, plus other updates

For PropertyGuru’s real estate news roundup, Saudi Arabia’s housing market continued to show resilience in the third quarter of 2023. In other headlines, retail rents in Dubai and Abu Dhabi have risen by double digits in recent months. Aboitiz Data Innovation seeks to increase its offerings of artificial intelligence (AI)-powered solutions across Asia.

Saudi housing market resilient despite slowdown

In a recent industry report, Saudi Arabia’s housing market continued to show resilience, achieving an impressive SAR45.9 billion (USD12.23 billion) worth of transactions in the third quarter of 2023.

The CBRE report also revealed that the total number of transactions recorded reached 61,473 transactions.

CBRE’s study showed a noteworthy surge in apartment prices, particularly in the capital city. Riyadh experienced significant growth of 16.1 percent, with average apartment prices reaching SAR4,780 per square meter. This reflects the robust market demand in the capital.

Taimur Khan, head of Middle East Research at CBRE, provided insights into the contrasting dynamics in the Saudi housing market. He stated in Economy Middle East: “With the exception of Jeddah, Saudi Arabia’s residential market posted yearly price increases in all tracked cities in Q3 2023 across both the villa and apartment segments.”

Retail rents in Dubai and Abu Dhabi surge by double digits

Retail rents in Dubai and Abu Dhabi have risen by double digits in recent months due to high demand and limited availability of quality stock.

PropertyNews.ae reports that according to CBRE Middle East, rents in the UAE capital rose 14.7 percent in the first quarter of the year, while in Dubai they rose 10.5 percent.

According to the real estate services firm, some of the demand is coming from foreign retail brands looking to enter the local market, particularly in Dubai. There is also strong demand from the food and beverage industry.

“The supply-and-demand imbalance in both Abu Dhabi and Dubai continues to drive rental performance,” CBRE said.

“We are seeing an increase in the number of global and international retail brands looking to establish or expand in Dubai’s core locations despite the limited availability of stock and elevated occupancy levels.”

Aboitiz Data Innovation eyes to expand offerings of AI solutions

Aboitiz Data Innovation (ADI) targets to increase its offerings of artificial intelligence (AI)-powered solutions across Asia, its top official said. The Singapore-based startup company has a presence in Hong Kong, Malaysia, Thailand, and Azerbaijan, together with its collaboration with the Aboitiz Group in the Philippines.

“Our effective focus and growth are in Asia, establishing the Philippines as our base of operations in creating formulation of how to make it work and bringing that… to markets that we operate in — commercial service, industrial, and the public sector as well,” ADI Chief Executive Officer David R. Hardoon told BusinessWorld.

ADI wants to become the “go-to partner” for AI solutions in the Philippines in 10 years, Mr. Hardoon said, and “truly believes” local firms are ready to adopt new technologies.

The Property Report editors wrote this article. For more information, email: [email protected].