Kingdom of Saudi Arabia Office Market Dynamics, Q1 2026

Prime and Grade A rents are maintaining upward momentum in Riyadh, supported by supply constraints and strong demand, while Jeddah and DMA's competitive dynamics are stabilising rents as tenant repositioning activity continues and corporate demand remains selective.

Occupier demand continues to demonstrate resilience and strength, driven by ongoing economic diversification, Vision 2030 initiatives, and sector-specific expansion in financial services, technology, and professional services. This momentum is expected to drive continued leasing activity, particularly for quality assets that align with evolving workspace requirements and talent attraction strategies.

Occupier preference for modern, amenity-rich developments in strategic locations will deepen market bifurcation, with prime and newer stock commanding premiums while older inventory faces prolonged vacancy and pricing pressure.

Corporates are increasingly prioritising business continuity features, flexible lease structures, and redundancy planning in location and space decisions, reflecting lessons from regional geopolitical developments and global supply chain disruptions.