Riyadh Office Costs Rise Fastest Globally In Q1 2025 As Demand Surges
Riyadh has emerged as one of the world's ten most expensive markets for prime office space, driven by rapid cost increases and sustained high occupancy, according to Savills' Riyadh Office Market Report for Q1 2025.
The Saudi capital saw average prime office rents rise 2.5% quarter-on-quarter and 12% year-on-year. Occupancy rates remained steady at 98%, highlighting the limited availability of high-quality office space and continued business confidence.
The growth is largely attributed to activity across sectors such as consulting, IT, legal, and pharmaceuticals. Notably, 50% of transactions in Q1 came from new market entrants, while 70% of enquiries were for units under 1,000 square metres — underscoring a shift toward flexible, efficient workspaces.
Riyadh also recorded the fastest increase in global prime office occupancy costs, rising 5.2% in the first quarter. This metric includes rent, service charges, fit-out expenses, and other occupier costs — offering a comprehensive view of leasing expenditures.
The city now ranks alongside global commercial hubs such as London, New York, Dubai, and Hong Kong in the Savills Global Prime Office Costs report.
'We're witnessing a pivotal moment for Riyadh,' said Ramzi Darwish, Head of Savills Saudi Arabia. 'With demand outpacing supply and international occupiers expanding, Riyadh is fast becoming a preferred base for global business.'
Major companies such as Salesforce, PepsiCo, Kaplan, and APEX established regional headquarters in Riyadh during Q1, bringing the total to over 540 — surpassing Vision 2030 targets ahead of schedule.
While new supply in 2025 will be limited, more than 900,000 square metres of Grade A office space is expected to be delivered by the end of 2026, including major projects like Diriyah Gate and Prince Mohammed bin Salman Nonprofit City.
With Saudi Arabia's recent credit rating upgrade to A+ by S&P Global and continued investment in infrastructure such as the Riyadh Metro, the city is poised to strengthen its position as a leading commercial hub in the Middle East and beyond.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Syyaha
3 hours ago
- Syyaha
flynas Celebrates Launching Direct Flights Between Riyadh and Damascus Becoming the first Saudi airline to connect the two countries in 12 years
flynas, the leading low-cost airline in the world and the best LCC in the Middle East, celebrated launching direct flights Between Riyadh and Damascus on Thursday, June 5, becoming the first Saudi airline to connect the two countries in 12 years, further expanding its network in line with flynas growth and expansion plan, launched under the title 'We Connect the World to the Kingdom,' in parallel with the objectives of the National Civil Aviation Strategy to enable national air carriers to contribute to connecting KSA with 250 International destinations and to accommodate 330 million passengers and to host 150 million tourists yearly by 2030 and the objectives of the Pilgrims Experience Program (PEP) to facilitate access to the Two Holy inaugural ceremony was held at King Khalid International Airport (KKIA) in Riyadh on Thursday, June 5, attended by the Syrian Charge d'Affaires Hussain Abdulaziz and representatives from flynas and the Riyadh Airports Company, which manages and operates KKIA, as well as media representatives. Travelling guests on the departing inaugural flight to Damascus were welcomed with giveaways, and the aircraft was received with a 'water salute' upon its arrival at Damascus International Airport, in the presence of the Saudi Charge d'Affaires Abdullah Al-Haris, and representatives from the Syrian General Authority of Civil Aviation, flynas, and Damascus International flights to the Syrian capital confirms flynas' commitment to strengthening ties between the two brotherly nations, as the leading LCC has been a pioneer in providing air routes between the Kingdom and various Syrian cities. flynas previously operated direct flights from Riyadh and Jeddah to Damascus, Aleppo, and operates 139 routes to more than 70 domestic and international destinations in 30 countries with more than 2000 weekly flights and has flown more than 80 million passengers since its launch in 2007, with the aim to reach 165 domestic and international destinations within its growth and expansion plan, and in line with the objectives of Vision 2030. Passengers traveling with flynas can book their flights through all flynas booking channels: the flynas app, the call centre (920001234), or travel agents.
Daily Tribune
3 days ago
- Daily Tribune
TRA Bahrain recognised for global regulatory excellence
TDT| Manama Bahrain's Telecommunications Regulatory Authority (TRA) has been awarded the prestigious Quality Choice Prize 2025 by the European Society for Quality Research (ESQR), placing it among a select group of international institutions recognised for regulatory excellence. The award was presented during the annual Quality Convention and celebrates TRA Bahrain's performance in quality management, digital transformation, and adherence to international governance standards. It affirms Bahrain's growing presence on the global map of forward-thinking regulatory models. Institutional pride 'This international recognition is a testament to TRA Bahrain's dedication to quality and transparency across all levels of its work,' said Sh. Abdulla bin Humood Al Khalifa, Director of Consumer Affairs and Communication at TRA. 'We are proud to represent Bahrain on this global platform and will continue to uphold the highest standards in serving consumers and the telecommunications sector.' TRA Bahrain was selected for its strategic reforms, internal performance systems, and consumer-first approach to oversight. The recognition is also seen as a reflection of Bahrain's broader commitment to Vision 2030 through institutional improvement and regulatory clarity. Regional leadership Since its establishment in 2002, TRA Bahrain has worked closely with government, consumers, and telecom operators to modernise the Kingdom's communications infrastructure. It has earned a reputation for independence and transparency, helping position Bahrain as a regional hub for tech investment and digital governance. The ESQR award is expected to further reinforce Bahrain's image as a centre of excellence in regulation and innovation across the Middle East.
Biz Bahrain
3 days ago
- Biz Bahrain
Vatel Bahrain Showcases Premier International Hotel Management Education at Alumni Club Expo in Dammam
Vatel Bahrain took part in the Bahraini-Saudi University Expo, held in Dammam, Kingdom of Saudi Arabia. Organised by the Alumni Club in collaboration with Asas Al-Elaqa for Exhibitions. The event welcomed the participation of a wide array of universities, colleges, institutes, and educational and training academies from Bahrain, Saudi Arabia, and across the Gulf region. Vatel Bahrain's participation at the expo attracted substantial attention from prospective students and visitors, who engaged directly with the college's representatives to gain insight into its distinctive academic offerings. The spotlight was on its flagship bachelor's programme in International Hotel Management, which integrates rigorous academic instruction with immersive, real-world training. This comprehensive curriculum is purposefully structured to develop advanced competencies across the hospitality, tourism, and hotel management sectors—equipping graduates with the skills, versatility, and global perspective required to thrive in today's competitive international hospitality landscape. Commenting on the participation, Sheikh Khaled bin Khalifa Al Khalifa, General Director of Vatel Bahrain, underscored the college's commitment to participating in educational exhibitions to introducing prospective students to its programmes, and noted that such engagements are pivotal in raising awareness of Vatel Bahrain's role in enhancing academic and professional opportunities within the hospitality industry. Sheikh Khaled commented, 'We are particularly eager to participate in exhibitions held in Saudi Arabia, as Vatel Bahrain is among the institutions officially recommended for Saudi students pursuing studies abroad. Our participation in the Expo underscores Vatel Bahrain's ongoing commitment to advancing regional academic collaboration and broadening access to quality education across the Gulf.' Sheikh Khaled further emphasised that the expo served as a valuable platform for engaging directly with prospective students expressing interest in Vatel Bahrain's International Hotel Management programme. 'Our objective is to support students by addressing their queries, providing tailored academic guidance, and highlighting the unique advantages of pursuing higher education within an internationally recognised and forward-looking academic environment,' Sheikh Khaled stated. 'Vatel Bahrain continues to solidify its position as a premier regional centre of excellence in tourism, hospitality, and hotel management education—and we warmly welcome aspiring students to be part of this transformative journey.'
