Kingdom of Saudi Arabia Industrial Market Dynamics, Q1 2025

Riyadh's industrial sector demonstrated significant momentum in Q1 2025, with average warehouse rents climbing 9.2% year-on-year to reach SAR 243 per sq. m. Al Bariah and Dar El Beida led this growth, recording annual rental increases of 16.7% and 15.4%, respectively. Industrial Gate City maintained its premium position, with rents increasing by 13.2% to SAR 300 per sq. m. This substantial rental growth stemmed from heightened demand for quality industrial space, underpinned by the government's economic diversification efforts and logistics infrastructure enhancements.

In Jeddah, the industrial market maintained positive performance with average warehouse rates increasing by 5.5% year-on-year to SAR 274 per sq. m. Jeddah Islamic Port emerged as the standout performer, achieving double-digit growth with rates surging 11.1% annually to approximately SAR 450 per sq. m. The premium commanded by port-adjacent facilities, which achieved 100% occupancy, underscored Jeddah's strategic importance as the Kingdom's key logistics gateway, with occupiers prioritising locations offering superior connectivity to international shipping routes.