Residential real estate prices in Jeddah will begin to rise by the end of this year as major developments in the city are hit by delays, a new report predicted on Tuesday.

The supply of residential units in Saudi’s second most populous city is increasing faster than demand, particularly at the upper end of the apartment market, according to a report by real estate consultancy Jones Lang Lasalle.

But a significant oversupply will be averted due to expected construction delays at some of the planned “mega” residential communities, it said.