Riyadh office market records fastest global 5.2% growth rate in Q1 2025: Savills
Riyadh has entered the global top 10 for prime office costs, according to Savills' latest market report released on May 22, 2025.
The Saudi capital recorded the fastest growth rate among all surveyed markets in the first quarter of 2025.
Prime office rents in Riyadh increased by 2.5 per cent quarter-on-quarter and 12 per cent year-on-year, whilst occupancy rates remained at 98 per cent since Q4 2024.
Riyadh's office market soars
The city's total prime office occupancy costs rose by 5.2 per cent, surpassing all other markets in the Savills Global Prime Office Costs Q1 2025 report.
The surge in demand stems from increased activity across consulting, legal, IT, and pharmaceutical sectors.
New market entrants accounted for 50 per cent of Q1 transactions, with over 70 per cent of enquiries focusing on spaces under 1,000 square metres.
Riyadh now ranks alongside Dubai, London, New York, and Hong Kong in the global prime office market rankings.
The total occupancy cost metric includes base rent, fit-out expenses, service charges, and related costs.
'We're witnessing a pivotal moment for Riyadh. With demand outpacing supply and international occupiers continuing to expand their regional footprint, the capital is fast emerging as a preferred base for global business,' Ramzi Darwish, Head of Saudi Arabia, Savills Middle East said.
Major firms choose Riyadh
High-profile companies, including Salesforce, PepsiCo, Kaplan, and APEX established operations in Riyadh during Q1 2025.
The number of licensed regional headquarters in the city has exceeded 540, surpassing Vision 2030 targets ahead of schedule.
The market faces limited new supply in 2025, but more than 900,000 square metres of Grade A space will be delivered by end-2026.
Developments such as Diriyah Gate and Prince Mohammed bin Salman Nonprofit City (Misk) are set to transform the commercial landscape.
'Combined with landmark developments, regulatory reforms, and infrastructure investments like the Riyadh Metro, the city is well on its way to becoming one of the world's most competitive office markets,' Darwish added.
S&P Global recently upgraded Saudi Arabia's credit rating to A+, supporting market confidence through steady economic diversification and continued investor interest.
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