Latest news with #primeoffice
Zawya
22-05-2025
- Business
- Zawya
Savills Riyadh emerges as a leading global business hub amid strong office demand, reveals Savills
Riyadh's office market continues its upward trajectory, with robust demand, record occupancy, and growing international interest that is positioning the Saudi capital as a key regional business hub, according to Savills latest Riyadh Office Market Report Q1 2025. The report highlights that average prime office rents in Riyadh rose by 2.5% quarter-on-quarter and 12% year-on-year, with occupancy rates holding steady at 98% since Q4 2024, a testament to sustained business confidence and limited availability of high-quality stock. The surge in demand is being driven by increased activity across the consulting, legal, IT, and pharmaceutical sectors, with new market entrants accounting for 50% of Q1 transactions. Over 70% of enquiries were for spaces under 1,000 sq m, pointing to rising interest in flexible, efficient workplaces. Riyadh also scored highly in the Savills Global Prime Office Costs Q1 2025 report, ranking among the top ten most expensive prime office markets worldwide, alongside global cities such as Dubai, London, New York, and Hong Kong. The city recorded a 5.2% increase in total prime office occupancy costs, the highest growth rate among all surveyed markets. This metric reflects the total cost to occupiers, including base rent, fit-out expenses, service charges, and related costs, offering a fuller picture of leasing expenditure. The increase reinforces Riyadh's ascent as a destination of choice for multinational headquarters and cross-border investment. 'We're witnessing a pivotal moment for Riyadh,' said Ramzi Darwish, Head of Saudi Arabia, Savills Middle East. '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. 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.' New occupier arrivals in Q1 2025 include high-profile global players such as Salesforce, PepsiCo, Kaplan, and APEX, taking the number of licensed regional headquarters in Riyadh to over 540, surpassing Vision 2030 targets well ahead of schedule. Looking ahead, while 2025 is expected to see limited new supply, more than 900,000 sq m of Grade A space is set to be delivered by end-2026. Major developments such as Diriyah Gate and Prince Mohammed bin Salman Nonprofit City (Misk) are expected to further transform the capital's commercial landscape. With credit rating agency S&P Global recently upgrading Saudi Arabia's credit rating to A+, market confidence is expected to remain strong, underpinned by steady economic diversification and continued investor interest.
Arabian Business
22-05-2025
- Business
- Arabian Business
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.
