The Riyadh office market demonstrated continued strength in Q4 2025, with Grade A occupancy holding at 98.5% and average rents reaching SAR 2,333 per square meter, according to a report by Savills Middle East. The market benefited from sustained occupier demand and Saudi Arabia’s positive economic backdrop.
Real GDP expanded by 4.8% in 2025, with forecasts indicating a slight moderation to 4.3% in 2026. The non-oil sector grew by 4.9%, reflecting progress in the Kingdom’s economic diversification agenda. The Purchasing Managers’ Index remained at 57.4 in December, marking 60 consecutive months above the neutral 50-point mark.
Leasing Activity and Sector Performance
Leasing activity remained consistent during Q4 2025, with the Technology, Media and Telecommunications sector accounting for 60% of total transactions. Engineering, manufacturing and pharmaceutical occupiers each represented 20% of completed deals. Relocation activity comprised 60% of concluded transactions during the quarter.
The enquiry pipeline remained active, led by the Banking, Financial Services and Insurance sector, which generated 50% of total enquiries. Notably, 75% of enquiries were for office spaces below 1,000 square meters. Savills reported that 75% of leasing enquiries in Q4 originated from US and UK companies.
Rental Performance Across Zones
Average rents in the Riyadh office market reached SAR 2,333 per square meter, rising 1.0% quarter-on-quarter and 12% year-on-year. Zone C recorded the strongest annual rental performance at 20%, followed by Zone A at 14%. Rental levels showed signs of stabilization during the quarter, supported by the ongoing rent freeze.
The five-year rent freeze, covering both residential and commercial sectors, contributed to greater market stability. Following previous rental increases, Q4 data indicates that rent levels have broadly stabilized, with only modest movement observed across prime office stock.
Regional Headquarters Growth
Riyadh continues to strengthen its position as a regional business hub. As of late October 2025, more than 700 global companies had established their regional headquarters in the city, surpassing the Vision 2030 target of 500 companies ahead of schedule. New entrants in Q4 included Darktrace, Union Bancaire Privé, The Edge and the National Bank of Egypt.
Foreign direct investment maintained upward momentum, with Q3 inflows reaching SAR 24.9 billion, compared to SAR 16.0 billion in the same period last year. Commercial property transactions reached SAR 5.26 billion in December 2025.
Market Outlook and Future Supply
“Riyadh’s office market continues to reflect the broader strength of the Kingdom’s economic transformation. Sustained occupier demand, high Grade A occupancy levels and steady enquiry activity demonstrate confidence in the market.”
Ramzi Darwish, Head of Saudi Arabia at Savills Middle East
Over 950,000 square meters of Grade A office space is expected to enter the market by late 2026, including landmark projects such as Diriyah Gate, Prime Business Resort and the Prince Mohammed bin Salman Nonprofit City. With foreign direct ownership anticipated next quarter, the market is expected to become more accessible to international investors, further supporting liquidity and market depth.
