Emaar plans to bring its “Emaar Square” commercial property concept to Jeddah, tapping growing demand for premium office space in the Saudi city. The Dubai-based developer yesterday said it would launch an Emaar Square-branded commercial real estate development as part of its 6 billion riyal (Dh5.87bn) Jeddah Gate project. It is the fourth project of its kind, following launches in Dubai, Istanbul and Cairo.
The Jeddah Emaar Square project will consist of three dedicated office buildings of five floors each, set around Crescent Plaza, a retail strip with luxury retail outlets and an array of restaurants and cafes.
The development will contain offices ranging in size from 250 to 400 square metres, together with a special showcase of exquisite office suites ranging in size from 500 to about 735 sq metres, with glass walls offering panoramic views.
"Emaar Square is our prestigious commercial precinct within Jeddah Gate, which is today one of the most sought-after lifestyle destinations," according to Fred Durie, the chief executive of Emaar International.
“The dedicated office precinct complements Jeddah’s international status as a business hub, and offers businesses across diverse economic sectors, a world-class environment to define their individuality. It also meets the gap in Jeddah for a vibrant ‘Central Business District’ that offers luxury commercial real estate space.”
The development will be located in close proximity to the headquarters of major banking institutions and the Jeddah Chamber of Commerce & Industry.
“Designed to be one of the most prestigious commercial addresses in the Kingdom, Emaar Square at Jeddah Gate will appeal to Saudi and international businesses for their regional headquarters or boutique offices,” said Mr Durie.
Demand for office space in Jeddah from both public sector bodies and the private sector is high, according to the property consultancy JLL.
As a result, the city has the lowest vacancy levels of any major office market in the Middle East and North Africa, at around 10 per cent.
Jeddah’s total completed office stock stood at 723,000 sq metres at the end of March, and is expected to grow by a further 109,000 sq metres by the end of the year, according to JLL.
Average office rents in completed Grade A and Grade B buildings have increased by 7 per cent over the past six months to 901 riyals per sq metre in the first quarter of the year.
The city’s new King Abdulaziz International Airport is scheduled to be ready by the end of the year, with construction work on a new metro system scheduled to begin next year.
Jeddah municipality is due to complete 13 infrastructure projects worth 895.6m riyals over the next 12 months, largely to ease traffic congestion.
Emaar has already handed over a series of homes in Jeddah Gate’s Abraj Al Hilal residential towers.
The developer’s shares closed down 4.86 per cent at Dh8.80, as property stocks continued to be dragged down by a sell-off of shares in Arabtec, the construction company.
jeverington@thenational.ae
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