In the first quarter of 2025, the Riyadh office market achieved an impressive milestone by recording the fastest global growth rate of 5.2%, as highlighted in a recent report by Savills. This surge underscores Riyadh’s burgeoning status as a vital player in the global real estate sector, driven by robust demand from various industries and an influx of high-profile companies. Investors and businesses are increasingly recognizing the city as an attractive destination for their office needs, emphasizing its growing prominence in the global marketplace.
Riyadh has entered the global top 10 for prime office costs, according to Savills’ latest market report released in May 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% quarter-on-quarter and 12% year-on-year, while occupancy rates remained at 98% since Q4 2024.
Riyadh’s Office Market Soars
The city’s total prime office occupancy costs rose by 5.2%, surpassing all other markets in the Savills Global Prime Office Costs Q1 2025 report.
The surge in demand stems from increased activity across the consulting, legal, IT, and pharmaceutical sectors.
New market entrants accounted for 50% of Q1 transactions, with over 70% of inquiries focusing on spaces under 1,000 square meters.
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,” said Ramzi Darwish, Head of Saudi Arabia at Savills Middle East.
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 meters of Grade A space will be delivered by the end of 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.
The sustained business confidence reflects limited availability of high-quality stock and growing international interest, positioning the city as a key regional business hub.