The Saudi Arabia office market continues to grow fast as global companies demand more commercial space in Riyadh. Premium office rents have surged due to limited supply and rising investor confidence. Multinational firms now pursue larger spaces to support expanding teams.
Rents in the Saudi Arabia office market climbed by 10% across top-tier locations. Grade A offices reached 98% occupancy as companies competed for space. Leasing inquiries for offices over 1,000 square meters increased to 50%, up from earlier in the year.
Finance, law, and pharmaceutical companies drove much of the activity. The Banking, Financial Services, and Insurance sector led half of all leasing deals. Legal firms and pharmaceutical businesses contributed the remaining half, showing strong sector diversity in Riyadh.
Firms from the United States and the United Kingdom led international interest. Nearly half of the new leasing requests came from these two countries. Foreign investors trust Saudi Arabia’s economic reforms and growth potential.
Key business districts experienced the sharpest rent increases. Zone C saw rents rise 15%, while Zone A followed with an 11% gain. These areas now attract top corporations looking for premium headquarters space.
Developers are preparing to launch new projects to meet rising demand. Major initiatives like Diriyah Gate and Misk City will soon add 900,000 square meters of new office space. This could help stabilize rent growth later on.
Despite the upcoming supply, demand remains strong. Global companies still choose Riyadh for regional expansion and operations. Saudi Arabia’s economic transformation continues to attract high-level business interest.
Vision 2030 plays a major role in supporting the Saudi Arabia office market. This national plan encourages diversification and growth beyond oil. As investment rises, commercial real estate becomes even more important.
More companies will likely enter the Riyadh market as supply increases. These businesses aim to take advantage of new modern office developments. Riyadh’s status as a regional business hub will continue to grow.
The Saudi Arabia office market will stay strong as long as demand remains high. Tight supply, foreign investment, and large-scale reforms keep it among the Middle East’s top real estate markets.
