RIYADH: Saudi Arabia’s commercial real estate market is heating up, with prime office rents in Riyadh climbing 7.3 percent year on year in the second quarter of 2025 to SR3,630 ($967) per sq. meter per year, according to JLL.
The sharp rise reflects tight supply and robust demand, particularly in the capital and Jeddah, as the Kingdom pushes ahead with its Vision 2030 diversification drive and its Regional Headquarters Program to attract multinational firms.
Saudi Arabia’s Real Estate General Authority expects the property market to hit $101.62 billion by 2029, with a compound annual growth rate of 8 percent from 2024.
“The continued expansion of the KSA office market directly reflects the Kingdom’s strategic vision for economic diversification and urban development,” said Saud Al-Sulaimani, country lead and head of capital markets at JLL Saudi Arabia.
“Riyadh’s sustained performance, driven by a flight to quality and the Regional Headquarters Program, solidifies its position as a key business hub,” he added.
