Riyadh’s office market is maintaining its strong footing, driven by confidence in the national economy and its positive outlook, according to Savills Research’s Riyadh Office Market report (pdf). Healthy demand pushed rents and occupancy up in 2Q 2025, as Riyadh’s Grade A office market recorded a 98% occupancy rate, with rents rising 10% y-o-y and 0.75% q-o-q. Annual rent growth was fastest in Zone C at 15% and Zone A at nearly 11%.

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ICYMI- Riyadh’s prime office occupancy exceeded 95%, driving average commercial rents up by approximately 4% q-o-q, according to CBRE.

Multinational headquarters in the capital have already surpassed the 2030 target of 500, with 660 firms acquiring licenses for their regional headquarters, including 60 licenses granted from February through June. This 2Q momentum included new entrants like BNY Mellon, London Business School, ASPEN, and Globant.

Leasing activity was strong during the quarter, with half of the demand generated from the banking, financial services, and ins. (BFSI) sector, followed by legal services and pharma at 25% each. Half of these leasing transactions were expansion-driven, while reallocations and new entrants equally shared the other half, which suggests that larger space requirements may likely be linked to the recent PMI increase.

Businesses want bigger spaces: A trend towards larger footprints drove 2Q demand, with requests for spaces over 1k sqm climbing to 50% of all enquiries (up from 28% last quarter). Of those enquiries, 30% were for spaces larger than 4k sqm. This robust pipeline was led by the BFSI, technology, media, telecoms, and engineering sectors, which together comprised 45% of demand.

The Riyadh metro is enhancing accessibility and appeal for key business districts, such as King Abdullah Financial District and Olaya, which are becoming more accessible as new stations open, the report said.

Looking ahead, Savills predicts strong demand and occupancy to continue driving rental growth, though this upward pressure may soften by the end of 2026 as over 900k sqm of new Grade A space is expected to be delivered, including Diriyah Gate and Prince Mohammed bin Salman Nonprofit City.

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