Kingdom of Saudi Arabia Office Market Dynamics, Q2 2026

With the phased introduction of new office inventory, rental appreciation is tapering and property owners are implementing increasingly adaptable leasing approaches to maintain competitiveness.

Limited availability of premium, institutional grade assets in strategic locations continues to sustain strong landlord pricing power, enabling sustained rate resilience and favorable lease terms. Conversely, older stock encounters increasing competitive challenges as tenants gravitate toward modern specifications, necessitating upgrades or enhanced concessions to retain occupancy.

The office market performance is becoming increasingly city-specific, with Riyadh maintaining strong fundamentals, Jeddah witnessing gradual recovery, and the DMA remaining subdued amid cautious occupier sentiment.

Sustained business activity continues to underpin office demand, especially in Riyadh and Jeddah, with corporates in both cities expanding and upgrading their spaces as part of broader business growth strategies.