The Saudi real estate market is currently witnessing rapid and sustained developments, with increasing growth opportunities as the Kingdom moves closer to achieving its ambitious Vision 2030 objectives aimed at economic diversification and transformation. This market momentum is supported by substantial investments in infrastructure and large-scale projects, which enhance its resilience and adaptability to various challenges.

According to a recent report by JLL, a leading global real estate consultancy, the Saudi real estate sector demonstrated strong performance in the first half of 2024, particularly within the office and residential segments. This growth is driven by heightened demand from governmental and semi-governmental entities, along with notable expansion towards the northern regions of the country.

In the office sector, JLL anticipates that, despite a significant influx of new supply expected this year, the market will maintain its positive trajectory into the second half. Demand for high-quality office spaces is expected to remain robust, particularly among existing tenants seeking to enhance the efficiency of their office environments. This dynamic is poised to support both rental growth and occupancy rates.

During the first half of 2024, Riyadh saw the completion of approximately 52,000 square meters of office space, bringing the total supply to 5.2 million square meters. Projections indicate that an additional 249,000 square meters will be introduced before year-end, further solidifying Riyadh's status as a premier destination in the office sector.

Conversely, Jeddah's office market has stabilized at around 1.2 million square meters, with no new additions, though 48,000 square meters are expected to be delivered by the end of the year.

In terms of rental pricing for Grade A office spaces, Riyadh experienced a notable increase of 19%, reaching 2,090 SAR per square meter annually, while Jeddah saw an 11% rise, bringing rents to 1,335 SAR per square meter. This upward trend underscores the increasing demand for premium office spaces in both cities, particularly in the northern areas of Riyadh.