# Riyadh Office Market (2022-2027) --- ## Report Summary The Riyadh Office Market worth 5.0Mn GLA in 2022 is projected to reach 6.0Mn GLA by 2031, growing at a CAGR of 3.85% during 2025-2031. --- ## Riyadh Office Market Report Table of Contents Table of Contents - 1. Riyadh Office Market Overview - 1.1. Riyadh Office Market Highlights - 1.2. Riyadh Office Market Definition - 1.3. Riyadh Office Market Taxonomy - 2. Riyadh Office Market Ecosystem - 3. Riyadh Office Market Size (GLA in SQM Mn), 2018-2022 - 4. Riyadh Office Market Segmentation, 2022 - 4.1. Riyadh Office Market Segmentation by Type of Office Stock (in % GLA), 2022 - 4.2. Riyadh Office Market Segmentation by Rent (in % GLA), 2022 - 4.3. Riyadh Office Market Segmentation by Region (in % GLA), 2022 - 5. Riyadh Office Industry Analysis - 5.1. Riyadh Office Market Performance - 5.2. Riyadh Office Market Government Initiatives - 5.3. Riyadh Office Market Emergence of International Companies - 5.4. Riyadh Office Market Positive Economic Development - 5.5. Riyadh Office Market Location Factor - 5.6. Increase in Women Workforce - 6. Riyadh Office Market Competitive Landscape - 6.1. Riyadh Office Market Company Profile - 7. Riyadh Office Future Market Size (in GLA SQM Mn), 2022-2027 - 8. Riyadh Office Future Market Trends & Opportunities - 8.1. Future Trends & Expected Impact on Riyadh Office Market - 8.2. Future Development & Trends in Riyadh Office Market - 8.3. Future Growth Drivers in Riyadh Office Market - 9. Riyadh Office Market Macroeconomic Indicators - 9.1. KSA Population by Gender (in Mn), 2022 - 9.2. KSA Population by Region (in Mn), 2022 - 9.3. Urban & Rural Population in KSA (in %), 2022 - 9.4. KSA GDP and Inflation Rate(in SAR Bn and %), 2017-2022 - 10. Disclaimer - 11. Contact Us --- ## Riyadh Office Market Overview Riyadh Office Market Highlights The Riyadh Office Market was at 3.9 Mn GLA in SQM in 2018 and has reached 5.0 Mn GLA in SQM in 2022. The Riyadh Office market is analyzed on the basis of average rent in Premium, Grade-A, Grade-B+ and Grade-B office spaces. Average annual rent per sq meter for Premium offices is SAR 1,500-1,900, followed by Grade A offices that have a rent close to SAR 1200-1500 per square meter. Upcoming years will be pivotal for Riyadh's office market landscape, as a substantial amount of supply is projected to be introduced, which may potentially shift the balance of the market dynamics. Saudi Vision 2030 underscores the role of the private sector in the nation's economic framework, and with the envisaged amplification in its contribution, there is an anticipated surge in demand for office spaces. *Riyadh Office Market was at 3.9 Mn GLA in SQM in 2018 and has reached 5.0 Mn GLA in SQM in 2022.* --- ## Riyadh Office Market Definition ### Market Definition **Riyadh Office Market** Riyadh Office market includes the supply & demand calculated on the basis of gross leasing area in million square km (GLA SQM Mn). It includes the cumulative gross leasing area available in the real estate market from various large-scale projects including Premium, Grade A, Grade B+, and Grade B office spaces & total gross leasing area occupied by corporations (both government and private) for managing their day-to-day affairs in office real estate market. The market is segmented on type of office stocks & rent in office spaces, along with analysis of rates in various parts of Riyadh. The report also includes case studies of various companies like Granada Business Park, King Abdullah Financial District, Tamkeen Tower, Al Faisal Iah Tower, Business Gate, Business Front, Al-Raidah Digital City. Office space occupied through purchase is not included in this market. --- ## Taxonomy | ID | Parent ID | Label | | --- | --- | --- | | 1 | | Office Market Segmentation | | 2 | 1 | Location | | 3 | 2 | Central Business District (CBD) | | 4 | 2 | Suburban areas | | 5 | 2 | Industrial Zones | | 6 | 1 | Building Type | | 7 | 6 | Skyscrapers | | 8 | 6 | Low-rise Buildings | | 9 | 6 | Office Parks | | 10 | 1 | Size | | 11 | 10 | Small Offices (less than 1000 sq ft) | | 12 | 10 | Medium Offices (1000-5000 sq ft) | | 13 | 10 | Large Offices (5000+ sq ft) | | 14 | 1 | Amenities | | 15 | 14 | Parking Facilities | | 16 | 14 | Conference Rooms | | 17 | 14 | Fitness Centres | | 18 | 14 | Cafeterias/Restaurants | | 19 | 1 | Rental Rates | | 20 | 19 | High-end (Premium Rates) | | 21 | 19 | Mid-Range | | 22 | 19 | Affordable | --- ## Riyadh Office Market Ecosystem ### Market Ecosystem **Ecosystem of Riyadh Office Market** Riyadh Office Market is expected to see an increase in quality of offering to the tenants as iconic buildings are emerging which will include world-class facilities and technologies being servedto the tenants. Some of the top-notch buildings are Granada Business Park, King Abdullah Financial District, Tamkeen Tower, Business Front, etc. are the most prominent ones. --- ## Riyadh Office Market Size Riyadh Office Market was at 3.9 Mn GLA in SQM in 2018 and has reached 5.0 Mn GLA in SQM in 2022. The market is currently growing at a CAGR of 5.1% between the aforementioned time period. With the enforcement of Regional Headquarters Program (RHQ), Riyadh is now becoming the preferred location for various companies to establish their headquarters in the Middle East. This confidence in Riyadh emerges as a result of its rapidly expanding economy among the G20 states. Over 80 international companies have obtained licenses to operate in the Kingdom which demonstrates a strong demand directed towards Riyadh's office spaces. Well-known companies like Arabian Oud, Jarir, and Alinma Bank are already adopting the approach of customised office solutions as per their requirements. Upcoming years will be pivotal for Riyadh's office market landscape, as a substantial amount of supply is projected to be introduced. This may potentially shift the balance of the market dynamics. --- ## Riyadh Office Market Segmentation, 2022 ### Riyadh Office Market Segmentation by Type of Office Stock (in % GLA), 2022 Based on the type of office stock, Riyadh Office market is segmented into Premium, Grade-A, Grade-B+ and Grade B office stock. In 2022, Premium office stock dominates the market at 52%, followed by Grade-A which dominates the market at 26%, Grade-B+ at 13% and Grade-B at 9%. Over 80 multinational businesses are acquiring licenses, Riyadh as the fastest-growing G20 economy became undeniable. Therefore, premium office spaces, particularly those in eminent hubs like the King Abdullah Financial District (KAFD) and Laysen Valley became prime targets. Upsurge in demand has resulted in approximately 13% increment in lease rates, pushing the average for prime office spaces to approximately SAR 1,500-1900 SQM. Grade-A spaces have benefited from this growth trajectory, with many businesses seeking these offices as a balance between luxury and value, further maintaining high occupancy rates. ### Riyadh Office Market Segmentation by Rent (in % GLA), 2022 Riyadh Office market is analyzed on the basis of average rent in Premium, Grade-A, Grade-B+ and Grade-B office spaces. Amongst these, Premium office segment dominates the market with 34% of total rent in 2022, followed by Grade-A with 27%, Grade-B+ with 21% and Grade-B with 18%. The average annual rent per sq meter for Premium offices is SAR 1,500-1,900 in 2022, followed by Grade A offices that have a rent close to SAR 1200-1500 per square meter and the least preferred segment of offices is Grade B+ and B offices that amounts to SAR 950-1200 and 850-950 per square meter respectively. Rent of each segment varies directly along the location of the property, the quality of offices, and the degree of augmentation offered. Grade-A office rents correspond because of their shortage in supply. The Grade B+ and B offices are not tenant friendly and are not preferred due to difficulty of accessibility and lack of parking space and would continue to decline. ### Riyadh Office Market Segmentation by Region (in % GLA), 2022 Riyadh office market is segmented into East, West, North, South & Central. This is calculated on the basis of total rent at the duration. Amongst all the regions, Northern region has the maximum amount of rent for office spaces (32%), followed by Central (24%), Eastern (20%), Western (13%) & Southern (11%) in 2022. With the highest development activity and presence of major commercial properties and retail space in central and northern Riyadh, the rental prices for office properties have been the highest in Central and Northern part of Riyadh. Rent of these places are influenced by the locality and the connectivity with the rest of the city. Rental prices of Grade A, B+ and B offices was found to be the least in western and southern part of Riyadh. The average annual rent for offices in these areas fall in the range of SAR 350-450. The rent is relatively less than others since they’re under developed and lack promising infrastructure. --- ## Riyadh Office Industry Analysis ### Riyadh Office Market Government Initiatives Office market in Riyadh continues to be led by landlords in Riyadh and the government being an important driver for the overall take-up. Typical inquiries from government entities ranged from 5,000 sq. m and above, and the market is witnessing an extreme rush of new market entrants from international occupiers. Riyadh remains the focal point for occupier activity in the Kingdom, with demand in Jeddah and the Damam Metropolitan Area (DMA) remains relatively limited over the period. Demand from both existing and new occupiers is continuously growing despite the fact that there are extremely limited levels of occupiable stock available across the market. Throughout Q1 2023, the office sector in Riyadh showed strong performance in the all four (Premium, Grade A, Grade B+, Brade B) sectors of the market; in the Premium and Grade A segment, the average rental rate saw an annual rise of approximately 10%, while in the Grade B+ and Grade B segment of the market, rents rose by approximately 14.0%. In terms of occupancy rates, all Grades offices saw average occupancy rates increase, with Premium and Grade A segment reaching beyond 98%, representing a more than 1.8 percentage point annual increase, while other Grades segment increased by approximately 2.1 percentage point year-on-year on an average. Some of the government initiatives which have helped in the development of office market include Vision 2030, National Transformation Program, Riyadh Metro Project, to name a few. --- ## Riyadh Office Market Company Profile | Year | Company | Description | | --- | --- | --- | | 2012 | Granada Business Park | Granada Business Park is a modern mixed-use business park located in the heart of Riyadh, Saudi Arabia, serving as a contemporary hub for businesses of all sizes. The park is easily accessible and is designed to offer seamless connections to a variety of urban amenities. | | 2008 | King Abdullah Financial District (KAFD) | The King Abdullah Financial District (KAFD) stands as a symbol of Saudi Arabia's commitment to establishing Riyadh as a leading financial hub. This sprawling development, spanning an area of 1.6 million square meters, encompasses an array of residential, commercial, and recreational facilities, all designed with modernity and sustainability in mind. | | 2012 | Tamkeen Tower | Tamkeen Tower is a sign of the elite and the language of harmony between upscale Tamkeen Tower stands high, ready in the north of the capital Riyadh as a landmark of the powerful economic and commercial renaissance experienced in Saudi Arabia. Tamkeen Tower reflects the architectural progress and the wise management thought experienced by major business and finance companies. Tamkeen Tower stands high, ready in the north of capital Riyadh as a landmark of the powerful economic and commercial renaissance experienced in Saudi Arabia. Saudi Arabia - Riyadh and in the heart of the new commercial center of the storm movement qualities and financial dealings between arterial Riyadh, where King Fahd Road and Olaya Street stands tall enable with confidence as a teacher of civilization is characterized by modern lacquered geometric view of the future and approved the movement of the economy and development in the Tower King Abdullah Financial Center. Constitute a strategic location and easy access via the motorway network leading to it added value to the work environment elegantly amused. | | 1997 | Al Faisaliah Towers | Al Faisaliah Tower, on King Fahd Road in Riyadh, is Saudi Arabia's first skyscraper. Standing at 266.9 meters with a total 55 floors, there are 30 floors of premium office spaces, while the rest is famous for its unique golden glass sphere, housing a restaurant high above the city. The tower was crafted by the British design firm, Foster + Partners. Apart from office spaces, the tower's complex has a 5-star hotel, shopping areas, entertainment spots, and fine dining. Its eye-catching design and prime location in the Olaya district, close to key government and business sites, make it a standout and preferred business spot in Riyadh. | | 1975 | Business Gate | The Business Gate, strategically positioned on Airport Road in Riyadh, emerges as Saudi Arabia's inaugural office park. Spanning an expansive 150,000 sqm, this landmark integrates a vast 110,000 sqm of premier office space, luxury hotels tallying up to 600 rooms across two categories, an expansive retail area, and an avant-garde Exhibition & Convention center. The development's charm is accentuated with its unparalleled 77% landscaping, showcasing 2,500 palm trees and pioneering water features in the kingdom. Catering to an array of businesses, it offers both single and multi-tenant buildings suitable for small to large enterprises. Among its eminent occupants are global giants like Siemens, Pfizer, Oracle, and Microsoft. With amenities ranging from high-speed Wi-Fi, 24-hour access, advanced security systems, and plush interiors, The Business Gate stands as an emblem of luxury, functionality, and business excellence in Riyadh. | | 2005 | Al-Raidah Digital City | Al-Raidah Digital City (RDC) stands as a beacon of modernity and innovation in the heart of Riyadh. Established with the vision to revolutionize the information technology and communication sector in Saudi Arabia, this project is an initiative supervised by Al-Raidah Investment Co. (RIC). Positioned strategically in the Northwest district of Riyadh and just a short distance from Crowne Plaza Riyadh RDC Hotel, the RDC sprawls over 1,900,000 sqm, showcasing cutting-edge architecture. Its tall, state-of-the-art buildings, accentuated with vibrant lights, serve not just as office spaces but also as symbols of Saudi Arabia's technological aspirations. More than just a commercial hub, RDC is meticulously crafted to provide a holistic environment. It offers a synergy of scientific and recreational spaces, all geared towards fostering a unique blend of business, leisure, and innovation. From spacious parks and contemporary cafes to research and development facilities, every facet of RDC aims to bolster the IT community. A unique feature of the Digital City is its commitment to nurturing talent. The architectural and technical facets of the city are tailor-made to attract and retain the best minds in the industry. By offering such an environment, RDC aspires to be an epicenter of technological innovation, making significant contributions to the nation's economy. Adding to its appeal, the city boasts residential zones complete with luxury apartments and villas. The inclusion of international schools, a retail center, and entertainment arenas, like the amphitheater and a captivating fountain plaza, ensures that RDC is not just a workspace but a thriving community. | --- ## Riyadh Office Future Market Size ### Riyadh Office Future Market Size (in GLA SQM Mn), 2022-2027 Riyadh Office market size has reached 5 Mn GLA SQM in 2022 and is expected to reach 6 Mn GLA SQM by 2027, growing at a CAGR of 3.6% during the forecasted period. Riyadh office market exhibited resilience in Q1 2023 with the Kingdom's robust economic diversification strategies, prominently backed by the Regional Headquarters Program (RHQ). Growing demand from a mix of existing and new occupiers is worth noting, given the constrained levels of occupiable stock available. As Riyadh remains at the forefront of economic momentum in the Kingdom, sectors like Administration, Banking, Real Estate, and Business Services continue to demand significant office space, which reflects on the trends from previous years. Grade A office spaces offer state-of-the-art amenities at central city locations and attract a high volume of interest; yet as new and competitive quality stock becomes available, existing Grade A offerings might face challenges. Riyadh is expected to witness a renaissance in its office market offerings, and the recent inclination towards themed office parks and the announcement of integrated mixed-use developments underscores this evolution. --- ## Riyadh Office Market Macroeconomic Indicators ### KSA Population?by Gender (in Mn), 2022 In 2022, the Total population of KSA is 36.3 million out of which 20.9 Mn are male and 15.4 are female. ### KSA Population by Region (in Mn), 2022 Across all the regions Riyadh is the most populated region of KSA with a population of 7.7 Mn in 2022 followed by Jeddah and Mecca. ### Urban & Rural Population in KSA (in %), 2022 Urban population consists of 85% of urban population and 15% of rural population. About 30.8 Mn urban population of Saudi Arabia define the developing stage of the nation in 2022. ### KSA GDP and Inflation Rate (in SAR Bn and %), 2017-2022 In 2022, KSA GDP stands at SAR 4155.0 Bn at a growth rate of 3.1%. compared to SAR 3275.0 Bn in 2021 and SAR 2753 Bn in 2020. --- ## Frequently Asked Questions Find quick answers to common questions about Riyadh’s fast-evolving office market **Q: How big is the office market in Riyadh?** A: Riyadh Office Market was at GLA 5 Mn SQM in 2022. **Q: What is the future of Riyadh Office market?** A: Riyadh Office market is expected to reach GLA 6 Mn in SQM in 2027. **Q: Who are the key players of Riyadh Office Market?** A: Granada Business Park, Tamkeen Tower, Business Front are key players in Riyadh Office Market. **Q: What are the emerging trends in Riyadh Office Market?** A: Emergence of international companies, mega transportation projects & increasing women workforce are the emerging trends in Riyadh Office Market