Grade A Office Rents in Riyadh Rise 3% to SAR 3,320 per Meter Reportedly with Near-Full Occupancy

Grade A office rents in Riyadh rose by 3% year-on-year to reach SAR 3,320 per square meter, according to reports, amid near-full occupancy rates across most prime office complexes in the Saudi capital.

This increase comes against the backdrop of growing demand for premium office space from international companies expanding their presence in the Kingdom in conjunction with investment and localization initiatives, as well as government entities and institutions requiring headquarters that align with sustainability standards and corporate visual identity requirements.

Riyadh is experiencing a shortage of supply in prime, high-specification office space, as insufficient new projects have been delivered to meet the accelerating demand growth, resulting in waiting lists for some commercial developers.

Several real estate development companies are seeking to bridge this gap with mega office projects in areas such as Olaya, King Abdullah Financial District, and New Riyadh; however, the delivery pace may not keep up with the speed of demand in the short term.

Commercial real estate analysts believe rents will continue to rise as long as supply remains limited, noting that Riyadh's office market represents one of the strongest performing real estate sectors in the region at the current stage.