2 CENTURY21 SAUDI® RIYADH Real Estate Market Overview

2 CENTURY21 SAUDI® RIYADH Real Estate Market OverviewMESSAGE
Al Waleed Binzouman
General Manager
Century21Saudi is Saudi Arabia’s largest real estate marketing and consultancy
firm with five fully operational offices in different cities of KSA. We have long been
engaged in business with customers all over KSA in real estate industry, including
marketing, leasing, valuation, research, advisory and property management. We
provide optimal solutions for all stages of real estate development - from initial
feasibility to marketing and property management.
2015markedthebeginningofasignificantchangeinrealestatesectorasGovernment
took some important steps to regularize the real estate market. Implementation of
70% loan to value restriction for mortgage and announcement about land tax on
white lands are the recent initiatives took by the government in this regard.
Because of these new implementations the real estate market performed slowly
during the first half of 2015 when compared Y-O-Y bases with 2014. The major
reason behind the slow performance is the adjustment phase which the market is
going through, as forecasted by Century21 Saudi. It is expected that the mortgage
law and government initiative of land tax will impact the market positively in the long
run and boost the real estate business.
During H1-2015 real estate prices generally remained stable in the market while a
negative trend has been witnessed in some areas of Riyadh where per square meter
prices went down by 3% to 5%.
As part of our continued growth and strategy to exceed customer’s expectations,
Century21Saudi recently launched update version of our website. As a highly effective
and convenient information platform, the website of Century21Saudi after the latest
revision will play an even better role to meet your real estate needs.
We really appreciate your continued support and help, and we will continue making
greater efforts, sticking to our objectives, adhering to our faith, striving to make
progress and support our clients through innovative services with our broad vision
and pragmatic approach.
Message from
General Manager

4 CENTURY21 SAUDI® RIYADH Real Estate Market OverviewKSA MACROECONOMIC
KSA Macroeconomic Overview
E
conomy performance in 2014 came up at the very low
end of expectations with a deficit of SR54 billion despite
comfortable level in both oil prices ($99.5 per barrel for
Brent in 2014) and oil exports (year-to-October 7.1 million
barrel per day). This first fiscal deficit since 2009 was mainly due to
both falling revenues and rising expenditures. Total revenues slipped
by over 9% compared to the previous year, yet remained above the
SR1 trillion mark for the fourth year in a row. The growth in fiscal
expenditures, at 12.7% was the highest in the last three years,
exceeding the SR1 trillion mark for the first time.
During last couple of years, inflation in KSA has been stabilized at
moderate level. In 2014, inflation was recorded at an average of
2.7% which reduced to 2.2% by June-2015.
Expenditure for 2015 is budgeted at SR 860 billion while Revenue is
at SR 715 billion. The current budget accounts for 89% of oil export/
revenue which still shows a dominating sector in spite of government
efforts to diversify hydrocarbon based economy.
Year Revenue Expenditure Surplus/Deficit
Projected Actual Projected Actual Projected Actual
2011 540 1,110 580 804 -40 206
2012 702 1,240 690 853 12 387
2013 829 1,131 820 925 9 206
2014 855 1,046 855 1,100 0 -54.0
2015 715 - 860 - -145
**All the numbers are in SR Billion
Government Revenues & Expenditures
(2011 - 2015)
-200
-100
0
100
200
300
400
0
325
650
975
1,300
2011 2012 2013 2014 2015 Budgeted
Revenue Expenditure Surplus/Deﬁcit
SR(Billion)
KSA Demographic Profile
2013 2014 2015 F
Population 29,195,895 30,770,375 31,800,000
Population Growth Rate 2.4% 2.5%
Total Labor Force 10,997,856 11,600,424
Unemployment (Males) 12% 11.7%
KSA Economic Profile
2013 2014 2015 F
Nominal GDP (% Change) 4.8 1.1 -2.3
Real GDP (% Change) 3.8 3.6 2.5
Inflation 3.5 2.7 2.6
GDP Per Capita ( SR) 93,221 91,421 86,771

5CENTURY21 SAUDI® RIYADH Real Estate Market Overview KSA MACROECONOMIC
Oil Sector Overview H1 – 2015
Saudi Arabian crude production was up to 3.7% in Q2 - 2015
compared with the first quarter. The country continued its policy of
protecting its oil market share by squeezing out high-cost producers
via strong oil supply.
Crude Oil Production in Saudi Arabia increased from 9,809 TB/D
in Q1 – 2015 to 10,184 TB/D in Q2 – 2015.This raised up level of
production is due to increasing domestic demand and a desire to
hold market share.
The drift in oil prices has influenced the pace of economic activity in
Saudi Arabia. Activity has already slowed somewhat, and Century21
Saudi expect this trend to consolidate as the government trims the
pace of capital spending.
Non Oil Sector Overview H1 – 2015
The non-oil private sector grew by 3.3%. These figures confirm that
construction, non-oil manufacturing, transport and communications,
and wholesale and retail have shown marginal growth during H1 -
2015.
Construction sector’s growth was robust at 7.1% year-on-year. This
is due to huge activity in building infrastructure, commercial and,
increasingly residential projects.
Non-oil manufacturing grew by 3.3% year-on-year, supported mainly
by improved capacity and production levels for petrochemicals and
plastic products.
The wholesale and retail sector also recorded growth at 4.0% while
growth in the finance sector was at 1.10%.
KSA Macroeconomic Overview
NON – Oil Sectors Construction Sector
Non-Oil manufacturing
Sector
Finance Sector Whole Sale & Retail Sector
Growth 7.1 % 3.3 % 1.10 % 4.0 %
Market Trends

6 CENTURY21 SAUDI® RIYADH Real Estate Market OverviewLAND TAX
Background story
• At the end of last Year, The International Monetary Fund (IMF)
advised Saudi Arabia to implement a tax on vacant lands as a way to
increase non-oil revenues.
• March 23, 2015 - a plan approved by Government of KSA to
impose a tax on undeveloped land in urban areas
• Proposal submitted by: Newly formed Council for Economic and
Development Affairs.
• Rate for the tax and the time frame for implementation not
decided yet.
• The Council agreed that Ministry of Municipal and Rural Affairs
will be in charge to issue the implementing regulations to control
and organise the necessary mechanism to impose annual fees on
such land that is located within the white urban scale.
How this Tax will Impact?
• The introduction of such a tax will make the land trading market
more regulated as sellers won’t be able to hold the land for longer
as they will be subject to tax.
• More supply of land in the market is most likely to impact the land
prices and will trigger them down.
• The affordable housing project in the KSA market will get a big
push in two ways:
• Firstly, more supply of Land in the market to build housing units.
• Secondly, cost of land is a major constraint in any construction
project. Hence as a result of land tax, the land price is more likely
to move downward.
• The new Tax will force the land owners to sell their respective land
and this will increase the overall supply of land in the KSA market.
• The Demand & Supply will be narrowed down as increased supply
will help to boost the current housing projects in pipeline and will
provide room for new ones.
• This will also help to develop a more active real estate market
in KSA as key property developers will actively get involve in
starting new projects and hence increasing the overall real estate
transactions by value and numbers.
• This will help to boost the new mortgage law being implemented
as Banks will target the land owners and use their land as 30%
equity to finance their mortgage. This will positively impact the
banks business.
Why there is a need for such a Tax?
• Fewer players trying to manipulate the KSA Land market i.e. vast
areas of prime real estate being stockpiled by wealthy individuals
and companies with no intention of developing the land but simply
holding onto the land as a store of value and/or aiming to resell it
at a profit.
• High demand for affordable housing is on the rise in KSA as more
than half of citizens do not own their own homes, a high ratio for a
rich country. Rising rents make it hard for even the middle class to
afford housing; many Saudis do not meet qualifications for housing
loans from banks.
• The New Mortgage law needs a strong push as this new Land tax
regime will help to implement it in a better way both for the policy
makers and financial institutions.
Land Tax on Unused Urban Land in KSA
The Concept & Idea
The Unused Urban Land or a.k.a the “White Land” is a key driving force in meeting the growing housing demand in Kingdom of Saudi
Arabia. In other words, these big land parcels can be used in order to meet the housing shortages for majority of Saudi nationals, who are
currently residing in rented accommodation.
Key Questions that need to be addressed:
1. How would you classify an unused land? What are the criteria?
2. Will there be minimum value criteria from which the tax would
start to apply.
• Exempt value (if any)
• Taxable value
3. Will there be a time limit that will apply before tax is levied on
the land owner?

8 CENTURY21 SAUDI® RIYADH Real Estate Market OverviewRESIDENTIAL
D
espite the rapid expansion of residential real estate
market in KSA during the last year, the market is under
supplied as the demand is constantly rising.
Government estimates suggest that 60 percent of urban land in
Riyadh is currently undeveloped; thus the development of these
areas will definitely help to uplift the capital’s housing crisis by
increasing the stock of affordable housing. Ministry of Housing
has announced 160 new housing projects across the Kingdom out
of which Riyadh will contribute its maximum share by providing
number of upcoming housing projects.
Northern part of Riyadh is much active in terms of residential
development activities as several residential developments of
middle size are under progress especially at “Al Malqa” and “Al
Yasmeen” districts. Earlier this year, “Rafal Residence” project
by Rafal has announced the completion of concrete work on the
top floor of 28 story building. This is another vertical residential
project by Rafal Real Estate Development Co and will offer 172
luxurious residential apartments along with hotel suites. Another
mega project “Al Basateen” is aggressively under construction and
planning to deliver 900 villas in coming years. Currently, Phase 1 is
under construction and will offer 61 villas at the initial stage. The
project is strategically located beside King Khalid road (Northwest
of Riyadh).
Supply
Riyadh residential sector is being driven by small and medium sized
developers and individuals as they are making around 80% of the
supply. Century21Saudi has observed rapid development activities
especially in the northern districts of the capital city.
Several projects, including mega projects like Rafal Residence and
Al Basateen project, are in different phases of development and will
contribute some units to the supply in last quarter of 2015.
Another dynamic product by Damac is in the pipeline by the name
of “Damac Esclusiva”. Ewaan Global Residential Company has
also initiated its first residential project in Riyadh which will offer
around 300 villas mainly targeting upper middle class segment.
Furthermore, there are numerous small developments in planning
and execution phases, being developed by local developers and
individuals which will help to bridge the gap between supply and
demand. It is expected that under construction projects will deliver
more than 2,500 units in coming six months.
Riyadh Residential Market Overview
Riyadh Residential Projects – Anticipated Supply
Project Name No. of Units
Expected Year
of Completion
Rafal Residence 172 2015
Masharif Hills (Phase-1) 169 2015
Illoura Villas 70 2015
Canary Villas 40 2015
Damac Esclusiva 216 2016
Al Jawan 300 2017
Antara Residential Complex 520 2016
Ritaj Residential Project 292 2015
Al Basateen 900 2020
Bayt ul Hurr 216 2015-16
60%of Urban Land In
Riyadh is Currently
Undeveloped

9CENTURY21 SAUDI® RIYADH Real Estate Market Overview RESIDENTIAL
Demand
Currently around 60% of Saudis living in Riyadh do not have their
own houses due to higher population growth and hike in land prices.
The rapid increase in population is the key element of rising demand
especially in Riyadh residential market. Also among nationals, the
living trend of joint families are now slowly ending up into nuclear
families and thus putting more pressure on the demand for houses.
Since the majority of Kingdom’s population lies between the age of
25-30 years and marriages are occurring in a speedy ratio, therefore
it gives a healthy push to demand in residential sector. Riyadh is
contributing the second largest share of Saudi population (24.9%)
which makes the residential sector as one of the most demanding
in real estate market.
Market Performance:
When compared Y-O-Y bases with 2014, the residential real estate
transactions have been reduced with a significant proportion
during H1-2015, because of 70% loan to value restriction and
new government announcement of Land Tax. Century21Saudi
has observed that overall sale prices of residential units (villas/
apartments) have some negative trend as the prices went down by
5% to 12% in some areas of Riyadh. However, reduction in sales
activities has given a push to rental market and rentals have been
slightly increased between 5% to 7% in different areas of Riyadh.
This rental increase has mainly been noted in apartments segment
while villa rentals mostly remained unchanged during H1-2015.
Villas:
When compared with last year, the median prices of villas have
seen a negative trend in some districts of Riyadh where the prices
have gone down by 5% to 12% while prices remained stable in
other districts with no upward trend. . Rental rates of Villas mostly
remained stable in different districts of Riyadh.
As Sahafa, Al Yasmin and Al Malqa districts in the northern side,
while Ishbiliyah and Qurtabah districts at the eastern side are the
most desirable locations for villas as mostly development progress
has been noticed in these districts.
Median sales price of an average sized villa/duplex in these districts
ranges from SR 1.4 million to SR 1.8 million.
Apartments:
Reduction in sales activities has slightly uplifted the rentals of mainly
residential apartments. An increase of 3% to 5% in apartment
rentals has been witnessed especially in northern and eastern
districts of the capital while sale prices mostly remained unchanged
as compared to 2014.
Average rental rate of a 3 bedroom apartment varies between SR
40,000 to SR 50,000 per annum in the northern and eastern districts
while SR 30,000 to 45,000 per annum in central Riyadh. Southern
region of Riyadh is comparatively less desirable for living, here
rental rates ranges between SR 16,000 to SR 24,000 per year.
Riyadh House Ownership Ra2o
Own Houses 30%
Rented Houses 50%
Employer Houses 18%
Other Houses 2%
Residen'al Units Demand Supply Matrix
Supply Demand Diﬀerence
2014 32,000 57,000 25,000
2015 29,000 55,000 26,000
2016 32,500 59,000 26,500
2017 44,000 60,000 16,000
2018 38,500 60,000 21,500
2019 38,500 60,500 22,000
2020 38,000 60,800 22,800
Riyadh City Popula2on (2014-2020F)
Popula2on
2014 6.0
2015 6.2
2016 6.3
2017 6.4
2018 6.6
2019 6.7
2020 6.8
Riyadh Residen'al Projects – An'cipated Supply
Expected Year of
Comple'on
Al Jawan 300 2017
Antara Residen2al
Complex
520 2016
Ritaj Residen2al Project 292 2015
House Ownership Ratio in Riyadh
0%
13%
25%
38%
50%
Own Houses Rented Houses Employer Houses Other Houses
Residential Units Demand Supply Matrix
0
7,000
14,000
21,000
28,000
No.ofUnits
0
17,500
35,000
52,500
70,000
No. of Units
2014 2015 2016 2017 2018 2019 2020
Supply Demand Difference
Government Revenues & Expenditures
(2011 - 2015)
-200
-100
0
100
200
300
400
0
325
650
975
1300
2011 2012 2013 2014 2015 Budgeted
Riyadh House Ownership Ra2o
Own Houses 30%
Rented Houses 50%
Employer Houses 18%
Other Houses 2%
Residen'al Units Demand Supply Matrix
Supply Demand Diﬀerence
2014 32,000 57,000 25,000
2015 29,000 55,000 26,000
2016 32,500 59,000 26,500
2017 44,000 60,000 16,000
2018 38,500 60,000 21,500
2019 38,500 60,500 22,000
2020 38,000 60,800 22,800
Riyadh City Popula2on (2014-2020F)
Popula2on
2014 6.0
2015 6.2
2016 6.3
2017 6.4
2018 6.6
2019 6.7
2020 6.8
Riyadh Residen'al Projects – An'cipated Supply
Expected Year of
Comple'on
Al Jawan 300 2017
Antara Residen2al
Complex
520 2016
Ritaj Residen2al Project 292 2015
House Ownership Ratio in Riyadh
0%
13%
25%
38%
50%
Own Houses Rented Houses Employer Houses Other Houses
Residential Units Demand Supply Matrix
0
7,000
14,000
21,000
28,000
No.ofUnits
0
17,500
35,000
52,500
70,000
No. of Units
2014 2015 2016 2017 2018 2019 2020
Supply Demand Difference

10 CENTURY21 SAUDI® RIYADH Real Estate Market OverviewRESIDENTIAL
Area Min Max
Riyadh East
Qurtaba 26,000 35,000
Al Monisiyah 25,000 30,000
Gharnada & Alshahda 30,000 35,000
Al Hamra 40,000 45,000
Al Nazeem 18,000 22,000
Al Naseem (East) 18,000 24,000
Al Naseem (West) 20,000 25,000
Al Nahdha 26,000 30,000
Riyadh West
Wadi Laban 20,000 25,000
Nakheel 50,000 60,000
Raed 45,000 55,000
Riyadh North
Al Nafal 55,000 65,000
Al Yasmeen 50,000 60,000
Al Sahafah 40,000 45,000
Al Aqeeq 39,000 42,000
Al Malqa 50,000 60,000
Riyadh South
Dar Albaiza 18,000 20,000
Al Aziziah 20,000 25,000
Al Shifa 18,000 23,000
Badr 15,000 18,000
Al Marwah 20,000 22,000
Shabra 15,000 17,000
Al Swaidi 20,000 25,000
Al Zahrah 16,000 20,000
Al Areeja 15,000 18,000
Al Badiah 20,000 25,000
Al Hazm 16,000 20,000
Al Darehmiah 17,000 20,000
Riyadh Central
Al Marooj 30,000 35,000
Al Nazha 35,000 40,000
Al Izdhar 38,000 45,000
Al Ta'awun 38,000 45,000
Al Museef 30,000 35,000
Area Min Max
Riyadh East
Qurtaba 600,000 700,000
Al Monisiyah 350,000 480,000
Ishbiliah 580,000 650,000
Riyadh West
Wadi Laban 450,000 550,000
Nakheel 850,000 1,000,000
Zahrah Laban 725,000 850,000
Riyadh North
Al Yasmeen 480,000 700,000
Hittin 550,000 850,000
Al Malqa 450,000 750,000
Riyadh South
Dar Albaiza 250,000 400,000
Al Aziziah 350,000 450,000
Al Shifa 380,000 620,000
Riyadh Central
Al Ta'awun 580,000 780,000
Area Min Max
Riyadh East
Qurtaba 1,900,000 2,300,000
Al Monisiyah 1,000,000 1,350,000
Al Rimal 1,000,000 1,250,000
Gharnada & Alshahda 1,300,000 1,500,000
Al Hamra 1,700,000 2,100,000
Ishbiliah 950,000 1,300,000
Riyadh West
Wadi Laban 1,300,000 1,500,000
Riyadh North
Al Yasmeen 1,700,000 2,000,000
Al Sahafah 950,000 1,200,000
Al Malqa 1,800,000 2,200,000
Riyadh South
Al Aziziah 900,000 1,200,000
Al Shifa 950,000 1,250,000
Al Swaidi 1,000,000 1,300,000
Al Badiah 950,000 1,250,000
Riyadh Central
Al Nazha 1,700,000 2,300,000
Al Izdhar 1,500,000 1,750,000
Al Ta'awun 1,750,000 1,900,000
Average Annual Rents (SR) for Apartments (130 - 160 sqm)Average Sale Prices (SR) of Apartments (130 - 160 sqm)
Average Sale prices (SR 000’) of Villas (250 - 350 sqm)

12 CENTURY21 SAUDI® RIYADH Real Estate Market OverviewOFFICE
Supply
Completion of some buildings in ITCC and some B grade office
buildings added around 67,000 sqm in the office stock during first
half of 2015. By considering the construction pace, it is expected
that KAFD will not be able to deliver any office space during 2015.
Other than mega projects like KAFD and ITCC some other high rise
developments like “Hamad Tower” and “Al Rajhi Tower” will add
considerable office space in the market.
Demand
Other than public sector, the companies working for “Riyadh Metro
Project” and other infrastructure project as contractors and sub-
contractors remained the main demand generators of office space
during 2015.
Government policy to diversify the oil based economy into non-oil
sector growth is demand booster for office market.
In the recent years, trend in banking sector to open new branches in
newly developed retail centers is affecting the office space demand
negatively.
Riyadh Office Market Overview
D
espite the brief recovery of rental rates in Riyadh office market during 2014 due to improved demand and delay in construction
of mega projects, first half of 2015 saw a negative trend in office rentals. There are several underlying causes of this reduction
but market oversupply will no doubt have major contribution along with ongoing construction of “Riyadh Metro Project” beside
most of the major roads. A major decrease in office rental has been noticed beside Olaya road and King Fahad road as the CBD
become less desirable area for the tenants looking for new office space, because of traffic issues created by ongoing construction work of
“Riyadh Metro Project”.
Anticipated Supply
Project Name GLA (sqm)
Expected
Completion
KAFD 800,000 2016
ITCC 230,000 2015 -16
Endowment Project 95,000 2016
Majdoul Tower 70,000 2016
Hamad Tower 31,000 2016

13CENTURY21 SAUDI® RIYADH Real Estate Market Overview OFFICE
Market Performance
Overall a decrease in office rental rates has been witnessed during
H1-2015. The areas mainly affected by this negative trend are Olaya
Road, King Fahad Road, Oroba Street, Takhasusi Road and South
of Riyadh. The main reason behind this negative trend in CBD is
ongoing construction of “Riyadh Metro Project” which created lot
of traffic issues in peak morning and evening hours.
This decrease in rentals ranges between 5% to 15% in different
areas. Companies looking for new office space are mainly targeting
north of Riyadh or moving along ring roads because of better and
easy accessibility.
In parallel, office rentals in newly developed business gates and
prime office towers like “Kingdom” and “Al-Faisaliah” remained
stable with healthy occupancy.
During H1-2015 average rental rates varied across different districts
of Riyadh and ranges between as low as SR 350 per sqm in southern
part of Riyadh to as high as SR 1,100 in north of Riyadh. The average
city rentals of B/B+ Class office buildings ranges between SR 550 to
SR 850 per sqm. Prime A class office buildings are charging SR 1,700
per sqm without any decrease in rentals.
The vacancy rate varies between 15% to 20% and there will be
an upward pressure on vacancy rate with the completion of new
supply during 2015 & 2016.
Ofﬁce Rental Rates (H1-2015) - SR/Sqm
0
300
600
900
1,200
EasternRingRoad
KhuraisRoad
KhalidBinWaleedRoad
NorthernRingRoad
AnasbinMalikRoad
AyeshabintAbuBakkarRoad
KingFahadRoad
OlayaRoad
TahliaRoad
OrobaStreet
AlTakhasusiRoad
Salah-U-DinRoadMalaz
Min Max

14 CENTURY21 SAUDI® RIYADH Real Estate Market OverviewOFFICE
Office Rental Rates - H1-2015
(Grade B & B+ Class) (SR/sqm)
Area Min Max
Eastern Ring Road 650 750
Khurais Road 650 800
Sheik Hassan bin Hussain bin Ali Road 450 550
Khalid Bin Waleed Road 550 600
King Abdullah Road (East) 550 650
King Fahad Road (North) 750 850
Northern Ring Road 950 1,200
Anas bin Malik Road 550 700
Abu Bakr Siddique Road 550 650
Otman bin Affan Road 600 700
Olaya Road (North) 650 770
Al-Swaidi Al-Aam Road 380 450
Ayesha bint Abu Bakkar Road 350 400
King Fahad Road (Center) 900 1,150
Olaya Road (Center) 750 850
Prince Mohammad bin Abdul Aziz
Road (Tahlia)
950 1,050
Oroba Street 750 850
Al Takhasusi Road 650 800
Dabbab Street 600 700
King Abdullah Road 700 800
Moosa Bin Naseer Road 650 700
Salah-U-Din Road Malaz 650 800
Al Hasa Road 550 650
Office Market Trends
Total Inventory
(sqm)
Vacancy Rate Y-T-D completed Stock (sqm)
Average Asking Rent
(B Grade Offices in CBD) (SR/sqm)
Total 2,950,000 15%-20% 65,000 850
Market Trends

16 CENTURY21 SAUDI® RIYADH Real Estate Market OverviewRETAIL
Supply
During H1-2015 we witnessed several openings of community malls/
strip retail centers, “Malqa Center” and “Telal Center” are the two
new openings of first half. Lot of high end retail projects are under
development along “Northern Ring Road” in proximity of KAFD,
“Riyadh Park”, “Riyadh Walk”, Nakheel Center” and “The Boulevard”
are some of the major upcoming developments. The concept of
“High End Retail Park” is the idea retailers are going to test through
these developments.
By considering the retail market activity and pre booking status of
these upcoming projects we can assume that this new supply will
be easily absorbed in the market without creating any supply shock.
The completion time of the two major projects (KAFD and ITCC) in
Riyadh has been extended to 2016 or beyond. These delays have
resulted in their retail components being pushed forward into the
future years. The aforementioned projects will contribute around
150,000 square meter of retail space. This will take the total stock of
retail space in Riyadh over 3.2 million square meters.
Demand
High growth in discretionary spending along with growing young
population are the key demand generators in retail sector. Retailers
are fully aware of the market potential and are aggressively
expanding to increase their presence to cover the market effectively.
The constant population growth rate and increase in disposable
income among Saudis and Expats has kept the box ticking in Retail
Market.
Because of limited options of entertainment, fully air-conditioned
shopping malls and hypermarkets have become the source of
amusement and entertainment facilities for the residents and this
factor is also playing a major role in increase the retail demand.
The Retail Market has been galvanized through rapid expansions by
Hyper Markets and Food Chains. Lastly, the demand for luxury and
designer brands is on the rise in Riyadh and this has exhilarated the
idea of strip retail centres.
Riyadh Retail Market Overview
R
etail is top performing sector of Capital`s real estate
Market because of steady growth we witnessed since
last few years. Century21 Saudi observed that major
expansions took place predominantely in the North
of Riyadh where a lot of new retail malls are under construction
with modern shopping concept. Retail growth is mainly driven
by expansion plans from leading retailers, fast food chains, and
fashion brands. “Hyper Panda” and “Tamimi” are expanding very
aggressively while “Danube” is also increasing its presence in
different areas of Riyadh.
Ongoing construction of “Riyadh Metro Project” is creating lot of
traffic issues in CBD (Olaya and King Fahad Road) making these
location less desirable for retailer’s expansion. Also, Century21 Saudi
witnessed some retailers moving from Olaya road to Takhassusi
Street, Urubah Road, and King Abdulaziz Road.
Anticipated Supply
Expected
Completion
Malaz Mall 49,048 2016
The Boulevard 30,000 2015
The Corner 8,000 2016
Al Yarmouk Center 5,457 2015
Riyadh Park 92,000 2017
Al Diriyah Festival City Mall 250,000 2018
Khaleej Mall 43,028 2015
Al Makan Mall 23,357 2016
Al Hamra Mall 51,787 2015
Mall of Arabia 164,630 2018
Recently Completed Projects
Nakheel Mall 53,251
Tala Mall 31,216
Balancia Bazaar 26,700
Khatwah Center 12,060
Sahafa Center 8,700
Alia Plaza 45,366
Yasmeen Center 15,270

17CENTURY21 SAUDI® RIYADH Real Estate Market Overview RETAIL
Market Performance
During H1-2015 the rental values of the retail sector remained
stable with an increase in most areas of Riyadh.
Average Rentals for traditional retail showrooms escalated by
around 5% in different areas of the city. The shopping malls and
strip retail centers rentals witnessed an overall increase of 5% to
10%. This increase was minimal in south of the city and beside Olaya
and King Fahad Road while maximum in the north of Riyadh.
City wide vacancy rate during H1-2015 was around 10%. Although a
large supply is expected to be in the market during 2015-2016 but
by seeing the retailer’s expansion trends and opening of new
brands we can assume that the new supply will be absorbed in the
market without any further pressure on vacancy rates.
Rental rates of community malls/strip retail centers ranges between
SR 1,000 per square meter to SR 2,200 per square meter while
regional and super regional malls are charging relatively higher
rentals because of their elevated footfall.
“Northern Ring Road” and “Prince Turki Bin Abdulaziz Al Awal”
road are hosting most of the upcoming major retail developments.
After completion of ongoing projects on these roads they will be
transformed into major shopping hubs of Riyadh City.
Retail Market Trends
Current Retail
Space (sqm)
Vacancy Rate Future Supply (2015-2017) (sqm)
Average per sqm Asking Rents in
Modern Strip Retail Centers
Total 2,850,000 10% 650,000 SR 1500 – SR 2500
Market Trends
Showroom Rental Rates (SR/sqm) (Outside Malls)
0
600
1,200
1,800
2,400
EasternRingRoad
KhuraisRoad
WesternRingRoad
MadinaAl-MunawrahRoad
KingFahadRoad
NorthernRingRoad
OlayaRoad
TahliaRoad
OrobaStreet
AlTakhasusiRoad
DabbabStreet
KingAbdullahRoad
MakkahRoad
PrinceSultanStreet
MoosaBinNaseerRoad
Salah-U-DinRoadMalaz
AlHasaRoad
AlNahdaRoad
Min Max

18 CENTURY21 SAUDI® RIYADH Real Estate Market OverviewRETAIL
Area Min Max
Riyadh East
Eastern Ring Road 1,000 1,200
Khurais Road 700 800
Dammam Road 1,000 1,300
Sheik Hassan bin Hussain bin
Ali Road
700 850
Khalid Bin Waleed Road 1,000 1,300
Omar Bin Abdulaziz Road 950 1,200
King Abdullah Road 900 1,100
Imam Saud bin Abdul Aziz
Road
750 900
Prince Bandar Bin Abdulaziz 650 750
Al Imam Asshafi Road 600 700
Riyadh West
Western Ring Road 650 800
Al-Wadi Road 575 700
Madina Al-Munawrah Road 900 1,050
Prince Mashal bin Abdul Aziz
Road
575 750
Riyadh North
King Fahad Road 1,200 1,400
Northern Ring Road 1,100 1,350
Imam Saud bin Faisal Road 750 900
Anas bin Malik Road 900 1,200
King Abdul Aziz Road 1,100 1,400
Abu Bakr Siddique Road 900 1,100
Otman bin Affan Road 1,000 1,350
Al Khair Road 750 900
Olaya Road 900 1,200
Area Min Max
Riyadh Central
Olaya Road 1,000 1,200
Prince Mohammad bin Abdul
Aziz Road (Tahlia)
2,000 2,250
Oroba Street 1,200 1,400
Al Takhasusi Road 1,000 1,300
Dabbab Street 1,300 1,500
King Abdullah Road 1,200 1,500
Makkah Road 1,000 1,500
Prince Sultan Street 1,200 1,500
Imam Saud bin Abdul Aziz
Road
1,000 1,200
Moosa Bin Naseer Road 1,000 1,200
Salah-U-Din Road Malaz 975 1,100
Al Hasa Road 850 1,000
Al Nahda Road 1,000 1,200
Retail Showrooms Rental Rates H1-2015 ( Line Shops -Outside Malls) - SR/Sq m
Riyadh South
Kharj Road 475 650
Al-Aziziyah Road 475 600
Dirab Road 450 500
Southern Ring Road 700 900
An Nasr Road 475 575
Al-Swaidi Al-Aam Road 525 600
Hamzah bin Abdul Mutlib
Road
725 900
Ayesha bint Abu Bakkar Road 750 925

20 CENTURY21 SAUDI® RIYADH Real Estate Market OverviewHOSPITALITY
Branded Furnished Apartments
Riyadh’s branded furnished apartments sector is a key area for
niche investment and expansion in the hospitality sector. Although
the city is equipped with local furnished apartments across major
districts but the market lacks major brand names.
Marriott Executive Apartments are the only Branded and fully
furnished apartments in the Capital.
Hilton is currently developing a serviced apartment tower next to its
Hilton Riyadh Hotel which is expected to enter the market by 2016.
DAMAC Properties is currently developing its branded serviced
residences called DAMAC Esclusiva which will enter in the market
by 2016.
(** Under-construction)
Riyadh Hospitality Market Overview
R
iyadh, the Capital City is a prime destination for business
travellers & corporate tourism.
Century21 Saudi witnessed that H1 – 2015 was a stable
period for the hospitality sector. Although there were no major
addition except Double Tree by Hilton but occupancy rate showed
an upward trend and reached around 62% and is expected to
remain stable over the remaining period of the year.
The initiatives being taken by the government including plans of
airport expansion & developments to boost overall passenger
capacity; this will significantly increase business travellers and the
flow of domestic tourists.
Hotels Delivered during H1 - 2015
Hotel Name No of Rooms Open
Double Tree by Hilton 223 H1 - 2015
Branded Furnished Apartments
Hotel Name No of Apartments
Marriott Executive Apartments 117
Hilton Residence Apartments 250**
DAMAC Esclusiva -Branded Serviced
Residences
100**

21CENTURY21 SAUDI® RIYADH Real Estate Market Overview HOSPITALITY
Supply
Century21 Saudi witnessed a sluggish H1 -2015 for hotel market
supply. The Key addition during H1 – 2015 was Double Tree by
Hilton. It added 223 keys and took the Capital’s Hotel inventory to
11,308 keys.
A major portion of supply is anticipated to be next year (2016).
The upcoming additions in the Capital’s hotel industry will be Nobu
Hotel Riyadh with 134 keys.
The Inter-continental and Wyndham hotels in K.A.F.D. will add
653 keys. Also in the pipeline is Studio M Hotel (with 143 keys) by
Waseel Properties and Millennium & Copthorne Hotels, which is to
be located on King Fahd Road.
Upcoming Key Hotels in K.A.F.D
Hotel Name No of Rooms
Expected
Completion
Wyndham Hotel 210 2016
Indigo Intercontinental Hotel 225 2016
Riyadh Intercontinental Hotel 218 2016

22 CENTURY21 SAUDI® RIYADH Real Estate Market OverviewHOSPITALITY
Market Performance
Century 21 Saudi observed that the hotels occupancy rate reached
around 62% during H1 – 2015. The healthy occupancy is due to the
increased corporate & business travel.
As the market is becoming increasingly competitive it has put
pressure on the hotel industry to offer more competitive rates.
The average daily rate for a 5 – star hotel is SAR 1,100 while for a
4 – Star Hotel is SAR 700 respectively.
The market outlook for the furnished apartments is promising and
in high demand. The average rate for a one bedroom furnished
apartment ranges between SAR 350 to SAR 450 depending upon
the location. Apartments in the CBD are offered at higher prices
than the market average.
The occupancy rate for furnished apartments is currently at 70% in
the Capital. The higher occupancy is due to their competitive rates
compared to hotels.
Hospitality Market
Trends
Total Inventory
(Rooms)
Occupancy Rate Supply in Pipeline (Rooms)
Average Daily Rate
(4 & 5 Star Hotels)
Total 11,308 62% 5,700 – 8,300 SR 950
Market Trends
Demand
The Capital’s financial hub and the new central business district will
be the King Abdullah Financial District (K.A.F.D.). Century21 Saudi
observed that major projects and expansions are around this area.
During the research Century 21 Saudi observed that Major
investments in infrastructure projects like K.A.F.D. and Riyadh
Metro are the significant elements in boosting the business tourism
industry in Riyadh, which will directly have a positive impact on the
hospitality industry.
The corporate sector was the driving force and also those travelling
from different cities or countries to attend Exhibitions, Seminars &
Conferences, which also attract local government officials and the
private sector.
Upcoming Key Hotels in Riyadh
Hotel Name
No of
Rooms
Expected
Completion
Studio M 145 2015
Le Meridien 231 2016
Nobu Hotel Riyadh 134 2016
Marriot Courtyard Hotel (Olaya) 229 2016
Swiss belhotel Riyadh 126 2016
Radisson Park Inn 168 2016
DAMAC TOWERS Paramount Hotel 215 2016
Al Faisaliah Resort & Spa 154 2016
62%
Hotels
occupancy rate
reached up to
in Riyadh

24 CENTURY21 SAUDI® RIYADH Real Estate Market OverviewLAND TRADING
Overview:
In H1-2015, total 4,692 transactions worth SR 24.6 billion have been
done, with a decline of 26% when compared to H1-2014.
Commercial land prices mostly remained stable in most areas of the
Riyadh. Century21 Saudi tried to find a reference of commercial
land prices decline, as rumored by some real estate sector experts,
but unable to find any actual evidence where commercial land has
been transacted with lower rate.
Riyadh Commercial Land Market Overview
COMMERCIAL LAND TRADING (H1-2014 Vs. H1-2015)
Month
No. of Transactions Value of Transactions
2014 2015 Change % 2014 2015 Change %
Jan 906 833 -9% 4,582,716,300 3,997,681,324 -15%
Feb 881 489 -80% 4,534,428,461 5,168,800,688 12%
Mar 840 672 -25% 2,911,650,939 2,857,646,089 0%
Apr 914 778 -17% 3,482,889,049 2,824,821,405 -23%
May 1,135 929 -22% 4,726,866,753 4,668,400,958 -1%
Jun 1,244 991 -26% 5,819,243,675 5,139,277,774 -13%
Total 5,920 4,692 -26% 26,057,795,177 24,656,628,238 -6%
Commercial Land Sale Prices H1-2015 (SR/Sqm)
0
7,500
15,000
22,500
30,000
EasternRingRoad
KhuraisRoad
PrinceSaadBinAbdulRahman
WesternRingRoad
MadinahMunawaraRoad
NorthernRingRoad
AnasBinMalikRoad
KharjRoad
SouthernRingRoad
AyeshaBinteAbuBakarRoad
KingFahadRoad
OlayaRoad
TahliahStreet
UrobahStreet
Min Max
26%
Decline of
No. of Transactions

LAND TRADING 25CENTURY21 SAUDI® RIYADH Real Estate Market Overview
Area
H1-2015
Min Max
Riyadh East
Eastern Ring Road 7,000 9,000
Khurais Road 5,000 6,500
Dammam Road 5,000 7,000
Al shaik Jaber Alahmed Alsabah Road 4,200 5,000
Saad Bin Abdulrehman Road 4,500 5,500
Imam Saud bin Abdul Aziz Road 5,000 6,500
Hassan Bin Hussain Bin Ali Road 4,500 6,000
Riyadh West
Western Ring Road 5,000 6,500
Madina Al-Munawrah Road 4,160 4,680
Riyadh North
Northern Ring Road 9,500 12,000
Prince Saud bin Mohammad bin Muqrin Road 5,000 6,500
Anas bin Malik Road 7,500 8,500
King Salman bin Abdul Aziz Road 7,500 8,000
Abu Bakr Siddique Road 5,500 6,500
Otman bin Affan Road 6,000 7,000
Al Khair Road 5,500 6,000
Salboukh Road 1,100 1,700
Olaya Road 9,000 12,000
Riyadh South
Kharj Road 1,850 2,500
Southern Ring Road 5,000 5,500
Hamzah bin Abdul Mutlib Road 3,600 4,500
Ayesha bint Abu Bakkar Road 4,000 4,800
Riyadh Central
Olaya Road 13,000 15,000
Prince Mohammad bin Abdul Aziz Road (Tahlia) 13,500 15,000
Oroba Street 8,500 10,000
Al Takhasusi Road 10,000 12,000
Dabbab Street 7,500 8,500
Makkah Road 7,500 8,500
Prince Sultan Street 6,500 7,500
Imam Saud bin Abdul Aziz Road 7,000 7,500
Moosa Bin Naseer Road 6,000 7,000
Salah-U-Din Road Malaz 8,000 10,500
Al Hasa Road 5,000 6,000
Al Nahda Road 5,500 6,500
Commercial Land Sale Prices H1-2015 (SR/Sqm)

26 CENTURY21 SAUDI® RIYADH Real Estate Market OverviewLAND TRADING
Overview:
In H1-2015, total 25,564 transactions worth SR 24.2 billion have
been done, with a decline of 33% when compared to H1-2014.
Residential land prices generally remained stable in most areas of
the Riyadh while some decline in residential land prices (5% to 10%)
has been noticed in Southern and western parts of Riyadh. This
decline is mainly attributed to the government announcement of
land tax in first quarter of 2015.
Riyadh Residential LAND Market Overview
RESIDENTIAL LAND TRADING (H1-2014 Vs. H1-2015)
Month
No. of Transactions Value of Transactions
2014 2015 Change % 2014 2015 Change %
Jan 6,229 3,493 -78% 6,433,454,678 3,202,039,374 -101%
Feb 5,464 3,487 -57% 6,280,183,024 2,506,823,454 -150%
Mar 4,981 4,740 -5% 7,420,407,407 5,153,314,075 -44%
Apr 5,121 3,774 -36% 4,452,533,566 3,231,648,612 -38%
May 6,181 4,713 -31% 5,348,936,553 4,502,142,593 -19%
Jun 5,950 5,357 -11% 5,839,740,444 5,670,365,792 -3%
Total 33,926 25,564 -33% 35,775,255,672 24,266,333,900 -47%
Average Sale Prices of Residential Lands (SR/sqm)
(SR/sqm)
0
1,500
3,000
4,500
6,000
AlHamra
AlYarmook
Ishbiliah
Arqa
Nakheel
AlGhadeer
AlYasmeen
AlMalqa
AlAziziah
AlShifa
AlSwaidi
AlBadiah
AlOlaya
AlMurooj
AlSulaymania
AlWarud
Min Max
10%5%TO
Curve down Price
in Southern & Western Region

LAND TRADING 27CENTURY21 SAUDI® RIYADH Real Estate Market Overview
Area
H1-2015
Min Max
Riyadh East
Qurtaba 2,600 2,800
Al Monisiyah 1,500 1,800
Al Rimal 900 1,250
Gharnada & Alshahda 3,200 3,500
Al Hamra 2,900 3,400
Al Quds 2,850 3,300
Al Yarmook 2,200 2,400
Al Qadsiah 1,800 2,000
Al Ma'eezlah 1,300 1,550
Ishbiliah 2,000 2,300
Al Nazeem 850 1,200
Al Janadriah 1,100 1,300
Al Salaam 2,600 3,000
Al Naseem (East) 1,300 1,850
Al Naseem (West) 1,350 2,000
Al Manar 1,300 1,550
Al Nahdha 850 1,000
Al Sulai 1,600 1,750
Al Jazira 1,800 2,000
Al Sa'adah 1,500 1,650
Riyadh West
Al Mahdiah 1,000 1,200
Al Hada 3,700 4,300
Arqa 3,100 3,500
Khuzami 4,300 4,600
Nakheel 4,000 4,500
Zahrah Laban 1,500 1,800
Riyadh North
Al Aarz 1,450 1,750
Al Qeerwan 2,000 2,200
Al Ghadeer 3,800 4,500
Al Rabeeh 3,000 3,500
Al Nada 2,800 3,300
Al Nafal 2,750 3,000
Al Wadi 2,600 3,000
Al Yasmeen 2,200 2,600
Hittin 3,800 4,500
Al Aqeeq 2,800 3,500
Al Malqa 3,500 3,850
Area
H1-2015
Min Max
Riyadh South
Dar Albaiza 950 1,150
Al Aziziah 1,200 1,500
Al Mansooriah 1,500 1,700
Al Shifa 1,500 1,700
Badr 750 950
Ahad 650 800
Al Marwah 1,250 1,550
Shabra 1,650 1,800
Al Swaidi 1,500 1,700
Al Zahrah 1,500 1,700
Al Areeja 950 1,150
Al Badiah 1,050 1,250
Taweeq 950 1,100
Namar 1,100 1,250
Al Hazm 950 1,100
Al Hair 250 450
Al Darehmiah 1,100 1,500
Riyadh Central
Al Olaya 3,500 4,000
Al Mazar 3,500 4,000
Al Murooj 2,650 3,000
King Fahad 2,500 2,750
Al Nazha 3,200 3,700
Al Izdhar 2,700 3,000
Al Ta'awun 2,700 3,000
Al Museef 2,200 2,700
Salahuddin 3,800 4,200
Al Mursalat 2,800 3,300
Al Sulaymania 3,000 3,500
Al Warud 3,750 4,200
Al Malaz 2,700 3,000
Jarir 2,700 3,000
Al Rahmaniyah 3,300 3,700
Al Mohammadiyah 3,700 4,000
Al Maghrazat 2,500 2,750
Average Sale Prices of Residential Lands (SR/sqm)

About Century21
®
Century21®
is one of the most recognized name in Real Estate Market with approximately 6,700 independently owned and
operated franchised brokerage offices in 75 countries and territories worldwide and represented by more than 102,000 real
estate experts.
Century21 Saudi is official representative of Century21®
in
the Kingdom of Saudi Arabia since 2005; specialized in Real
Estate Evaluation (Appraisal), Marketing and Leasing Services,
Real Estate Research & Advisory and Property Management.
Century21 Saudi’s Research & Advisory Department (CRA)
has been established in 2009 and has a proven track record
of providing a variety of research-based services to the
business arena all over KSA market.
Services
Equipped with highly qualified analysts & researchers,
Century21 Saudi is capable of responding all major segments
of Real Estate market (Residential, Commercial, Industrial
and Hospitality) with professional decorum.
Our offered services are:
• Feasibility Studies.
• Highest and Best Use Studies.
• Strategy & Planning Advisory.
• Pricing Strategies.
• Market Research Analysis Studies.
• Development Solutions.
• Site Assessment.
• Market Forecast.
• Real Estate Market Review.
Contacts
For Assistance in development & marketing decisions please contact:
Eng. Alaa Al-Thagafi
Deputy General Manager
alaat@century21saudi.com
Mobile: 0558 199 194
Asif Iqbal
Head of Research and Advisory
asif@century21saudi.com
Mobile: 0555 177 076
Abdulaziz Al-Mohaiza
Marketing Manager
abdulaziz@century21saudi.com
Mobile: 0505 983 926
Al Waleed Hamd Binzouman
General Manager
alwaleed@century21Saudi.com
Mobile: 0555 194 919
Disclaimer
In order to prepare this report, Century21 Saudi collected the data from outside sources as well as by survey of Century21 Saudi research team. Century21
Saudi is confident about the reliability of published data. However, we do not guarantee the completeness and accuracy of the data.
This report is prepared for information only. The assessments and values articulated in this report are subject to change without any notice. Therefore, no
investment decision should be made based on the information presented in this report. Century21 Saudi will not be responsible for any loss that may be
sustained as a result of the information enclosed in this report.
About Us
Riyadh - Main Office
P.O. Box : 300374 Riyadh : 11372 - Tel: +966 (11) 4000 360 - Fax: +966 (11) 485 7338 - www.century21saudi.com

2 CENTURY21 SAUDI® RIYADH Real Estate Market Overview

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