KSA Industrial Market Dynamics, Q2 2025

The capital recorded uniform rental increases across all industrial submarkets in Q2 2025, with annual growth rates ranging from 4.7% to 25.0%.

Top-tier industrial areas maintained their rental rate premiums across all cities, with prime locations near ports or strategic infrastructure continuing to attract premium rents and sustain high occupancy levels.

Riyadh and Jeddah’s industrial and logistics market both saw healthy rental growth of 9.3% and 4.5% respectively. In Dammam, headline rents increased by 10.8%, however, performance across sub-markets is somewhat fragmented.

Several submarkets recorded strong rental increases, with Indus-Comm in Dammam recording 32.4% annual growth in rental rates, followed by Taybah in Riyadh at 25.0%.