Average rental rates in Riyadh Office Real Estate market: Ken Research REQUEST FOR SAMPLE REPORT Buy Now Request For sample Report × Report Title Name Email Designation Phone No Comapny Name Comapny URL Country -- Please Select Your Country -- Afganistan Africa Albania Algeria Andorra Angola Anguilla Antigua and Barbuda Argentina Armenia Aruba Asia Australasia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bonaire Bosnia Herzegovina Botswana Brazil BRICS British Virgin Islands Brunei Darussalam Bulgaria Burkina Faso Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Republic Central and South America Chad Chile China Colombia Comoros Congo Costa Rica Cote d'Ivoire Croatia Cuba Curacao Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Europe European Union Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia Gabon Gambia Georgia Germany Ghana Gibraltar Global Great Britain Greece Greenland Grenada Guadeloupe Guam Guatemala Guerney & Alderney Guinea Guinea-Bissau Guyana Haiti Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Ivory Coast Jamaica Japan Jersey Jordan Kazakhstan Kenya Kiribati Kosovo Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libyan Arab Jamahiriya Liechtenstein Lithuania Luxembourg Macao Macau Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Man (Island of) Marshall Islands Martinique Mauritania Mauritius Mayotte Mexico Micronesia Middle East Minnesota Moldova Monaco Mongolia Monserrat Montenegro Morocco Morroco Mozambique Myanmar Namibia Nepal Netherlands New Caledonia New Zealand Nicaragua Niger Nigeria Niue North America North Korea Norway Oman Pakistan Palau Palestine Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Reunion Romania Russia Rwanda Saint Helena Saint Lucia Saint Martin Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa Samoa (American) San Marino Sao Tome and Principe Saudi Arabia Scandinavia Senegal Serbia Seychelles Sierra Leone Singapore Sint Maarten Slovakia Slovenia Solomon (Islands) Somalia South Africa South Korea South Sudan Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Islands Swaziland Sweden Switzerland Syria Taiwan Tajikistan Tanzania Thailand Timor Leste Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Uzbekistan Vanuatu Vatican City Venezuela Vietnam Virgin Islands Western Sahara Yemen Zambia Zimbabwe Requirement Submit The rental rate charged by office real estate developers in Riyadh varies across different building categories as well as location. It is evident that average rental rates across major business streets such as King Fahad road and Olaya Street are much higher because of better location and infrastructure facilities. Within these areas the rent may vary depending on net area under lease, whether the company is private or government owned as well as type of company. As reported at the end of March 2013 rental rates were SAR ~for Grade B offices and SAR ~ in Grade A office buildings. Rental rate at the end of 2016 was estimated at the average value of SAR ~. Rentals were lowest in Ayesha bint Abu Bakkar road and maximum on Northern ring road. Saudi Arabia Office Real Estate Market Government’s aim to diversify the economy has attracted the development of manufacturing and services sector to open their businesses in Saudi Arabia creating a substantial demand for office spaces in the country. Private participation has further boosted the development and demand of office space in Saudi Arabia. Programs such as Vision 2030 were launched in April 2016 and National Transformation Program (NTP) was launched in June 2016 with an aim to develop different sectors of the economy and country are expected to give positive boost to the economy. Riyadh will continue to lead the office real estate market in Saudi Arabia followed by Jeddah. What is the potential of Riyadh office real estate market? The total office real estate supply in Riyadh increased from ~ million square meters during 2013 to ~ million square meters of gross leasing area during 2016, registering a CAGR of ~% during the same period. Demand during the same period was lower than the supply. Total occupied office space increased from ~ million square meters during 2013 to approximately ~ million square meters during 2016, achieving a CAGR of ~% during the same period. Completion of Alajlan Tower (~ Sq m) and Al Tamaiouz Tower (~ Sqm), Olaya towers, MIG tower made significant contribution to the retail office space during the estimation period of 2013-2016. Constant oversupply in the market has made the rental stay stable.On analyzing the supply demand gap market in Riyadh office real estate market it was observed that the gap was on constant increase mainly due to addition of more and more office space area even though the demand was less and vacancy of existing properties was on rise. In 2013, the office supply exceeded the demand by ~ thousand square meters which increased to ~ thousand square meters in 2016. Demand was on decline mainly due to fall in oil prices which have badly hit the economy affecting the opening and expansion of business leading to poor demand for office space rentals. Riyadh office real estate market segmentation by location Central Business District was the key offices real estate market in Riyadh accounting for ~% (~ Sqm) of the net GLA available for leasing and renting in 2016. Most of the office buildings are located in close proximity to King Fahad Road and Olaya Road. Many Grade A office spaces are located in this region of the city making it a prime office location in the country. The city core area supply ~% of the GLA with the average rentals in the city core which comprises locations like King Saud Road, Salahuddin Ayoubi Road range between SAR ~ to SAR ~ per square meter. The northern part has emerged as the new region for developing office spaces in the Riyadh. In 2016, only ~% of the office spaces in Future outlook to office demand and supply Supply of office real estate is expected to increase from ~ million square meters in 2017 to ~ million square meters in 2019 which will further rise to ~ million square meter in 2021 Completion of Riyadh metro will make north a more attractive option for new and upcoming offices. It is expected that completion of KAFD, ITCC and Nakhla tower will add an estimated ~ million square meter. This will make the northern part of Riyadh a key office destination replacing CBD. Majority of the office space developed in this area is of the A and B type. Governments plan to cut down the staff by ~% may have negative impact on the Riyadh office space market, however plans such as Vision 2030 and NTP 2020 is expected to have positive impact on the demand for office spaces in the city. For more information on the research report, refer to below link: Source: https://www.kenresearch.com/manufacturing-and-construction/real-estate/riyadh-office-real-estate-market/142284-97.html Contact Us: Ken Research Ankur Gupta, Head Marketing & Communications ankur [@] kenresearch.com +91-9015378249 www.kenresearch.com Tags: Demand Supply Gap Commercial Riyadh, Elegance Towers Case Study, Hamad Tower Occupancy Rate, Location wise Demand Office Space Riyadh, Market Insight Office Riyadh, New Commercial Projects Riyadh, New Office Space Projects in Riyadh, New Upcoming Projects Office Space, Number of Commercial Units Riyadh, Project Profile Al Saedan Towers, Rental Rates Office Space Riyadh, Rents and Yields in Office Riyadh, Riyadh City Demand Office Space, Riyadh Commercial Real Estate Market, Riyadh Commercial Space Demand, Riyadh Commercial Unit Rental Rate, Riyadh Office Real Estate Developers, Riyadh Office Real Estate Market, Riyadh Office Real Estate Supply, Riyadh Real Estate Market Overview, Saudi Arabia Office Market, Saudi Arabia Office Real Estate Potential, Supply Demand Gap Riyadh Office, Tatweer Tower Rentable Area, Tijan Plaza Project Overview