RIYADH: Saudi Arabia’s commercial property market is one of the sector’s “leading lights” across the world, according to a new survey by the Royal Institution of Chartered Surveyors. The findings show that commercial property occupier demand in the Kingdom in the first three months of the year was the highest among all nations monitored by the RICS, recording a positive 75 percent net balance reading — up from the 43 noted in the previous quarter. This represents Saudi Arabia’s strongest result since the RICS launched its property monitor for the Kingdom in the final three months of 2018. “Saudi Arabia’s commercial property market remains one of the leading lights in both the MENA (Middle East and North Africa) region and the world, while confidence in future market conditions remains high,” said the RICS in a press release. According to the survey, both domestic and foreign investment enquiries saw continued strong readings — 56 and 62, respectively — with office, retail and industrial sectors almost completely balanced in their readings. Credit conditions also saw clear improvement with the metric recording a 58 in the first three months of 2023, up from 33 in the previous quarter. In terms of property cycle perceptions, 77 percent of respondents believe the Saudi commercial property market is in an upturn phase, with a majority — 54 percent— believing it is mid-upturn, while 23 percent feel the market is in an early upturn phase. Three-month rent expectations remained positive and stable overall, while twelve-month rent expectations recorded a clear rise, posting a reading of 71 compared to 61 in the final quarter of 2022. In its press release, the RICS said a key metric to watch is the market’s perception of valuation levels. “There is currently an even split between those who believe commercial property in the Kingdom is fairly valued and those who believe it is expensive (42 percent for each),” it said, adding that 17 percent believe commercial property is cheap, but no respondents believe property is very expensive — a status that has been in place since the first three months of 2022. “There is some anecdotal commentary that the market may be peaking, but that government fund injection is supporting the market,” said the press release.