Summary and analysis of the Kingdom of Saudi Arabia's current office real estate market conditions.
Exceptionally low vacancy rates across prime and Grade A office spaces in Riyadh and Jeddah have created a pronounced landlord-favourable market, driving rental growth and limiting occupier leverage in negotiations.
Multinational corporations continue to establish regional headquarters in Riyadh, particularly within the King Abdullah Financial District (KAFD), underscoring the success of the government's regional headquarters strategy and cementing Riyadh's position as a key business hub.
Occupiers are consistently moving toward higher-quality office spaces and relocating to the northern parts of Riyadh to avoid traffic congestion in the south, while those remaining in southern areas typically demonstrate greater price sensitivity.
Flex operators are expanding their footprint across the Kingdom, with average lease lengths extending beyond traditional short-term commitments to periods exceeding 18 months, reflecting the growing share of the sector in the market.