Riyadh office rents surge as 600+ companies plan regional headquarters

Office rents in Riyadh, the energetic capital of Saudi Arabia, are skyrocketing. By the end of the first quarter of 2025, Grade A office space prices will have increased by 23% year over year to a record high of SAR 2,700 ($719.95) per square meter. Due in large part to Saudi Arabia’s aggressive economic reforms and alluring government incentives, more than 600 multinational corporations have announced plans to locate their regional headquarters in the city, contributing to this dramatic increase. Booming Office Market With Grade A office occupancy rates reaching 98% and Grade B office occupancy rates at 97%, Riyadh’s demand for office space has escalated to previously unheard-of levels. To maintain 95% occupancy by March 2025, Grade A office rents in Jeddah, another significant economic centre, have increased by 4% to SAR 1,280 per square meter, while Grade B office rents have increased by 6% to SAR 845 per square meter. The kingdom’s increasing popularity as a business destination is reflected in this high demand. “Saudi Arabia’s economic momentum continued to strengthen across key sectors in 2024, underpinned by rising private sector activity,” said Faisal Durrani, Partner and Head of Research MENA at Knight Frank. The highest annual number on record, 14,303 foreign business investment licenses, was granted in 2024—a 67% increase from 2023, highlighting Saudi Arabia’s ongoing appeal to international corporations and