Saudi office and retail markets stay resilient as housing sector weakens in Q2: CBRE

Saudi office and retail markets stay resilient as housing sector weakens in Q2: CBRE

JEDDAH: Riyadh’s prime office rents rose 3 percent to SR3,320 ($886.72) per sq. meter in the second quarter as limited supply and strong demand from international firms kept Grade A occupancy near full capacity, according to CBRE.

The capital’s office market remained the strongest-performing segment of Saudi Arabia’s property sector even as residential transactions slowed and hospitality demand came under pressure.

The strong office market comes as Saudi Arabia accelerates project execution under Vision 2030. The Al Rajhi Capital Saudi Construction Index climbed to a record 56.3 in June, while data from the Saudi Contractors Authority showed project awards exceeded SR29.5 billion during the month.

Government expenditure also rose 20 percent year on year, according to the Ministry of Finance, supporting capital spending across major development corridors, and the International Monetary Fund expects overall gross domestic product growth to stand at 1.7 percent in 2026.