Kingdom of Saudi Arabia Office Market Dynamics, Q1 2025
Summary and analysis of the Kingdom of Saudi Arabia's current office real estate market conditions.
- Faraz Ahmed
- Muhammad Aijaz
- Taimur Khan
Riyadh's city-wide vacancy rate reached a low of 1.3% in Q1 2025, indicating an extremely tight market. This scarcity of available space is driving intense competition among tenants, particularly for prime locations.
Jeddah registered a slightly higher but still low vacancy rate of 4.4% during the same period. The limited supply of Grade A offices in Jeddah is contributing to this low vacancy rate, with premium buildings operating at high occupancy levels. Moreover, Grade B offices in the city are also witnessing rising occupancy rates, reflecting the willingness of some occupiers to consider a wider range of options.
The northern areas of both cities are seeing increased occupancy rates as businesses migrate to newer, higher-quality buildings. This trend is particularly pronounced in Jeddah, where the pace of migration towards the north has accelerated compared to previous years.
