Apartment rental rates in Jeddah fell by 8.3% Y-o-Y in 2Q18, while villa rates declined by 5.6%, according to a new JLL report. Apartment sale prices were down 8.5%, while villa prices were down 5.6%. The total supply of residential units reached 817,000 in 2Q18, up from 813,000 at the end of December 2017, with a further 4,000 units expected to be delivered in 2H18. Office rental rates fell by 12% Y-o-Y to an average of SAR1,055/sqm. GLA for office space reached 1.03mn sqm, up from 1.01mn sqm at the end of December 2017. A further 82,000 sqm of GLA is expected to enter the market in 2H18. In the retail sector, one development was delivered in 2Q18, leaving retail supply stable at 1.4mn sqm. Average rents were also relatively unchanged Y-o-Y, but decreased by c1.8% in regional centres. In the hospitality segment, one property entered the market with 144 rooms. That brought the supply of quality hotel keys in Jeddah to 11,200. Average occupancy stood at 55% in 5M18, 5pp below the same period last year; ADRs, however, rose by 7% Y-o-Y to USD239.