Market Research Reports - Ken Research Riyadh Office Real Estate Market

Office Real Estate Market in Riyadh Led by Demand from Private Sector of Economy: Ken
Research
Focus on diversification of economy, promotion of manufacturing and services sector and
demand from services related to rising number of industrial unit led the growth in demand for
office space in Riyadh.
Saudi Arabia is a key oil exporting country in the world and in the past few years has witnessed
significant rise in other form of industries and services including energy, education banking and
other service. This diversification of economy has created a significant rise in demand for office
spaces across the country and especially in the capital city of Riyadh. Private players are the key
participants in the rental office real estate market with small contribution coming from
government agencies. During the period 2013-2016 office real estate market has registered
constant increase in demand and supply with supply exceeding the demand all the time.
Rentals have remained nearly constant for most of the period and were dependent on type and
area of the office. Demand was maximum in the central business district which occupies the
major portion of the office space supply in the the city of Riyadh.
Rising share of private participation in the economy, entry of large number of foreign
companies and positive developments in services and manufacturing sector along with growing
participation of Saudi and women workforce promoted the demand for office space which is
expected to continue in future. Demand for office space in Riyadh may face stiff competition
from office space development in Jeddah and other cities. Government support will continue to
play a key in creating new jobs and diversification of economy from oil and gas creating
additional demand for office space in the city.
The report titled “Riyadh Office Real Estate Market by Major Projects (Elegance Tower, Al
Saedan Towers, Tijan Plaza, Hamad Tower, Tatweer Tower) -Outlook to 2021” by Ken
Research suggested that a Total occupied office space increased from 1.9 million square meters
in 2013 to approximately 2.2 million square meters during 2016, achieving a CAGR of 4.4%
during the same period. In 2016, the supply demand gap continues to exist even though the
delay was observed in delivery of mammoth office spaces in KAFD
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