RIYADH: Strong demand for warehouse space saw occupancy levels reach 98 percent in Riyadh in the first half of 2025 as industrial rents increased 16 percent, according to Knight Frank.
Average industrial rents in the capital rose to SR208 ($55) per sq. meter, the consultancy’s Saudi Arabia Industrial and Logistics Market Review – Autumn 2025 showed.
The surge underscores Riyadh’s growing dominance in Saudi Arabia’s logistics market, as the Kingdom strengthens its industrial sector — a key pillar of Vision 2030’s aim at reducing the economy’s reliance on oil revenues.
The Kingdom added 1.3 million sq. meters of new warehouse space in the first half of 2025, as the industrial and logistics sector recorded double-digit rental growth and near-full occupancy across major cities, Knight Frank noted.
Faisal Durrani, partner – head of research, MENA at the company, said: “Despite this influx of new supply, average rental rates across Riyadh, Jeddah and the DMA (Dammam Metropolitan Area) have risen significantly, underscoring persistent growth in demand, especially for high-quality, modern facilities.”
