Riyadh leads Saudi real estate surge with 18% rise in office rents

Riyadh leads Saudi real estate surge with 18% rise in office rents
Saudi Arabia’s growing real estate sector is expected to reach a market value of $101.62 billion in 2029, with an anticipated compound annual growth rate of 8 percent from 2024. (AFP)
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Updated 01 March 2025
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Riyadh leads Saudi real estate surge with 18% rise in office rents

Riyadh leads Saudi real estate surge with 18% rise in office rents
  • Jeddah and Dammam also witnessed a rise of 10% and 12% year on year over the same period

RIYADH: The real estate market in Riyadh is experiencing significant growth, with average rents for office spaces rising 18 percent year on year in the fourth quarter of 2024, according to an analysis. 

In its latest report, real estate services firm CBRE said that average rates in Jeddah and Dammam also witnessed a rise of 10 percent and 12 percent year on year over the same period.

The rapid increase in average rents for office space in Riyadh signifies the city’s expanding economic activity, driven by both a thriving private sector and ongoing government initiatives aimed at positioning the capital as a global business and investment hub.

It also underscores the progress of Saudi Arabia’s growing real estate sector which is expected to reach a market value of $101.62 billion in 2029, with an anticipated compound annual growth rate of 8 percent from 2024. 

“The high occupancy rates across the capital’s prime office districts reflect the strong prevailing demand, driven by the Kingdom’s thriving non-oil economy which is a key component of the government’s Vision 2030 diversification strategy,” said CBRE. 

It added: “Despite the rapidly rising rents, global occupiers and investors remain attracted to the Kingdom, as reflected in the continuation of the RHQ (regional headquarters) license growth through the fourth quarter of 2024.” 

In January, Saudi Arabia’s Investment Minister Khalid Al-Falih said that 571 international companies have opened Middle East bases in the Kingdom — exceeding the original target of 500 firms by 2030. 




Saudi Arabia’s growing real estate sector is expected to reach a market value of $101.62 billion in 2029, with an anticipated compound annual growth rate of 8 percent from 2024. (Shutterstock)

The regional headquarters program provides benefits for international firms, including a 30-year exemption from corporate income tax and withholding tax on headquarters’ activities for companies, as well as discounts and support services.

“Saudi’s real estate market continues to benefit from the country’s strong non-oil sector and wider investment environment, driven by the highly successful RHQ initiative which continues to see the setup of new regional headquarter offices, supporting growth not only in the commercial market but across the wider economy,” said Matthew Green, CBRE’s head of research for the Middle East and North Africa region. 

In February, a report released by property consultancy Sakan revealed that Saudi Arabia’s real estate market continued its rapid expansion in 2024, with transactions surging 47 percent year on year to $75.7 billion. 

Residential sector

According to CBRE, Saudi Arabia’s residential market is expected to experience significant growth over the next few years, driven by a strong economic foundation and a rapidly growing population. 

The report added that positive demographics and increasing demand for new homes, particularly in Riyadh, Jeddah, and Dammam, are some other factors that will propel the growth of the residential real estate segment in the Kingdom. 

“This demand is driving prices and rental rates higher, a trend that is expected to continue, with the value of new residential mortgages in the Kingdom rising 17 percent year on year in 2024,” said CBRE. 

The real estate consultancy added that average property prices in Riyadh’s residential sector saw an annual increase of 6 percent.

In Riyadh, the villa market has seen steady growth, with average prices now approaching SR6,000 ($1,599.82) per sq. meter, while apartment prices currently stand at SR5,200 per sq. meter 

In Jeddah, apartment values are slightly lower, averaging approximately SR4,000 per sq. meter, while villa values are notably higher, reaching nearly SR5,700 per sq. meter. 

Saudi’s real estate market continues to benefit from the country’s strong non-oil sector and wider investment environment, driven by the highly successful RHQ initiative which continues to see the set-up of new regional headquarter offices.

Matthew Green, CBRE’s head of research for the MENA region

In January, a report released by the General Authority for Statistics revealed that Saudi Arabia’s property sector maintained its growth trajectory in the fourth quarter of 2024, with the Kingdom’s real estate price index increasing by 3.6 percent year on year. 

According to GASTAT, this rise was largely attributed to a 2.5 percent year-on-year increase in residential land plot prices in the fourth quarter, which accounted for 45.7 percent of the index. Apartment prices rose by 2.9 percent, while villa prices saw a sharper uptick of 6.5 percent.

The Real Estate Price Index, a key statistical tool, measures changes in property prices in Saudi Arabia based on transaction data across the Kingdom.

In February, another report released by Knight Frank said that residential transaction values in Saudi Arabia surged 35 percent over the past five years to reach SR164.8 billion. 

The findings fall in line with the Kingdom’s Vision 2030 goal to reach a 70 percent homeownership rate by 2030. It also aligns well with Saudi Arabia’s commitment to supporting access to affordable, quality housing for all citizens.

According to the latest official data from the Housing Program — an initiative under Vision 2030 — Saudi family home ownership reached 63.74 percent in 2023.

In its latest report, Saudi Central Bank revealed that banks in the Kingdom issued SR91.1 billion in new residential mortgages to individuals in 2024, representing a 17 percent rise compared to the previous year. 

Hospitality industry

According to CBRE, average daily rates among hotels in Saudi Arabia increased by 2.1 percent year on year in December, resulting in a relatively stable revenue per available room, rising by 0.3 percent. 

While the long-term prospects for Saudi’s tourism industry are promising, the recent surge in new hotel supply has led to a slight decline in occupancy rates, down 1.7 percent year on year in the final month of 2024. 

In Riyadh, average daily rates increased by 14.6 percent year on year in December, while occupancy edged up by 0.7 percent. 

Average daily rates in Jeddah saw an annual decrease of 26.7 percent over the month, while occupancy rates dropped by 14.5 percent during the same period. 

Regarding future outlook, CBRE said: “With room growth expected to accelerate in the coming 12-24 months, hotels are likely to experience heightened competition, particularly in markets like Jeddah and Makkah where a significant volume of new keys are expected to complete.” 

Retail sector

CBRE said that Saudi Arabia’s point of sales data reflected the country’s strong underlying fundamentals and year-on-year growth in the Kingdom’s retail market in 2024, up around 9 percent from 2023.

The real estate services firm added that several major shopping centers are expected to be completed in the coming years, which will help to change the landscape of the Kingdom’s retail market.

“Whilst market dynamics have been improving, with rising rental rates and occupancy rates in recent quarters, the quantum of new space expected in the medium term may shift the dynamic back in the tenant’s favor,” said CBRE. 

It added: “For Riyadh, upcoming retail centers include Solitaire Mall which is already close to completion. The 25 Mall Complex and Al Hamara Entertainment Complex is anticipated to be delivered by the end of 2025, while Jawharat Riyadh is expected to open by early 2026. It will be followed by the opening of Avenue Malls in early 2027. Together these centers combined will deliver over 600,000 sq. meters of gross leasable areas to the market.”


Saudi Arabia’s Red Sea Global eyes IPO, REITs as resort openings gain pace

Saudi Arabia’s Red Sea Global eyes IPO, REITs as resort openings gain pace
Updated 20 August 2025
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Saudi Arabia’s Red Sea Global eyes IPO, REITs as resort openings gain pace

Saudi Arabia’s Red Sea Global eyes IPO, REITs as resort openings gain pace
  • Shoura Island will welcome guests this year at 11 luxury resorts
  • Construction at the wellness-focused Amaala project is progressing rapidly

RIYADH: Saudi Arabia’s Red Sea Global is considering a range of alternative financing options in the near future, including an initial public offering or converting assets into real estate investment trusts, according to its chief executive officer.

Speaking to Al-Eqtisadiah, John Pagano said no final decisions have been made, but emphasized the company’s focus on leveraging current momentum, with resorts now operational and more hotel openings expected this year.

Shoura Island, the flagship of the Red Sea destination, will welcome guests this year at 11 luxury resorts operated by global hospitality brands, including Rosewood, Four Seasons, Grand Hyatt, EDITION, and Raffles.

Construction at the wellness-focused Amaala project is also progressing rapidly, with core infrastructure complete and its first hotels nearing launch, Pagano said.

Six resorts have opened under the Red Sea destination so far, including Desert Rock and Shebara, which are fully owned and operated by Red Sea Global. The exclusive Thuwal Private Retreat has also been unveiled as the company’s third destination.

Red Sea Global has also launched residential offerings on Shoura and Ummhat islands, in addition to announcing Lahak Island earlier this year, which drew strong local and international attention, he said.

Amaala is set to open by year-end and will feature wellness and hospitality brands such as Jayasom, Six Senses, Rosewood, Equinox, and Clinique La Prairie. The destination aims to deliver experiences centered on healing, exploration, and renewal.


Saudi matcha imports surge 900% as demand reshapes Kingdom’s cafe sector

Saudi matcha imports surge 900% as demand reshapes Kingdom’s cafe sector
Updated 20 August 2025
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Saudi matcha imports surge 900% as demand reshapes Kingdom’s cafe sector

Saudi matcha imports surge 900% as demand reshapes Kingdom’s cafe sector

RIYADH: Saudi Arabia’s imports of Japanese matcha skyrocketed by nearly 900 percent in 2023 to 81,000 kilograms at a value at SR9 million ($2.40 million), up from just 9,000 kilograms in 2022, highlighting the rapid expansion of the drink’s market presence across the Kingdom.

The momentum continued into 2024, with imports totaling 46,000 kilograms worth SR7 million, reflecting sustained consumer demand and the growing role of matcha in the Kingdom’s cafe sector, Al-Eqtisadiah reported.

Cafes are capitalizing on the trend, with Jon & Vinny’s in Riyadh reporting weekend sales of 350 matcha cups per branch, making up 22 percent of beverage revenues, according to Al-Eqtisadiah.

The cafe uses a premium Japanese blend priced at SR1,200 per kilogram. Similarly, Pro 92 Cafe said matcha lattes alone contribute 10.5 percent of total sales, consuming over 150 kilograms of matcha monthly across branches.

The broader green tea category — which includes matcha — accounted for SR74 million in Saudi imports in 2024, totaling 2.3 million kilograms. In comparison, 2023 saw 2.5 million kilograms imported at a value of SR79 million, Al-Eqtisadiah reported.

Cups of matcha are sold at prices ranging from SR16 to SR29, depending on the outlet. This price variation has spurred a growing home-preparation market, with local Instagram-based businesses selling matcha kits priced between SR110 and SR180.

Driven by health-conscious consumers and youth interest in Japanese culture, matcha is carving out a permanent share in the Kingdom’s beverage landscape.


Closing Bell: Saudi main index ends lower at 10,878

Closing Bell: Saudi main index ends lower at 10,878
Updated 20 August 2025
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Closing Bell: Saudi main index ends lower at 10,878

Closing Bell: Saudi main index ends lower at 10,878
  • MSCI Tadawul Index fell 0.02%, to close at 1,406.62
  • Parallel market Nomu lost 0.52% to end at 26,629.95

RIYADH: Saudi Arabia’s Tadawul All Share Index edged down on Wednesday, slipping 3.64 points, or 0.03 percent, to close at 10,878.07. 

The benchmark’s total trading turnover stood at SR4.21 billion ($1.12 billion), with 95 stocks advancing and 148 declined. 

The MSCI Tadawul Index also dipped, falling 0.24 points, or 0.02 percent, to 1,406.62. 

The Kingdom’s parallel market Nomu lost 139.91 points, or 0.52 percent, to close at 26,629.95, as 35 stocks advanced and 55 retreated. 

Thimar Development Holding Co. was the session’s top performer, rising 4.47 percent to SR41.10. 

Al-Jouf Agricultural Development Co. climbed 3.4 percent to SR45.64, and Power and Water Utility Co. for Jubail and Yanbu gained 2.41 percent to SR40.80. 

Alistithmar AREIC Diversified REIT Fund recorded the steepest drop, falling 4.50 percent to SR8.06. Retal Urban Development Co. declined 3.95 percent to SR13.14, while Zamil Industrial Investment Co. slipped 2.94 percent to SR37.66. 

In corporate announcements, Sama Healthy Water Factory Co. reported a 27.19 percent decline in first-half 2025 net profit to SR3.51 million, compared with SR4.82 million a year earlier. 

In a Tadawul statement, the company attributed the fall mainly to unrealized foreign exchange losses, though it said core operational profit rose 23 percent on the back of higher sales and improved margins following the integration of a new raw material production line. 

Its share price fell 1.29 percent to SR2.29.  

View United Real Estate Development Co. posted a 132.11 percent increase in net profit for the first half of the year, reaching SR9.97 million versus SR4.30 million in the same period last year. 

The company cited a 104.77 percent jump in revenue, driven by stronger performance across most business segments, alongside the positive impact of off-plan and land sales, according to a Tadawul statement. 

Its shares, however, slipped 0.95 percent to SR6.24. 

Al Rashid Industrial Co. registered a 22.88 percent rise in first-half net profit to SR21.47 million, compared with SR17.47 million in the previous year. 

The company said the increase reflected stronger top-line performance and a 21.78 percent jump in gross operating profit, highlighting improved efficiency. 

Its stock advanced 9.18 percent to SR53.50. 


PIF launches ‘azm’ program to equip Saudis for labor market needs

PIF launches ‘azm’ program to equip Saudis for labor market needs
Updated 20 August 2025
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PIF launches ‘azm’ program to equip Saudis for labor market needs

PIF launches ‘azm’ program to equip Saudis for labor market needs
  • Program aims to create pipeline of technically skilled Saudis to meet PIF’s investment needs
  • It will offer tailored training at competitive costs

JEDDAH: Saudi Arabia’s Public Investment Fund launched a strategic program designed to build skills, address labor market needs, and support economic diversification to boost national talent. 

The “azm” workforce development program was unveiled at a signing ceremony attended by Education Minister Yousef Al-Benyan and PIF Governor Yasir Al-Rumayyan, alongside partners from the Technical and Vocational Training Corp., Colleges of Excellence, Human Resources Development Fund, and Roshn Group. 

The launch underscores PIF’s role in advancing Vision 2030, Saudi Arabia’s plan to transition to a knowledge-based economy and reduce reliance on oil revenues. 

In a post on its official X account, PIF said it launched “the ‘azm’ program to empower national talents and equip them with the expertise and skills required by the labor market, thereby contributing to building a stronger and more diverse national economy, through a signing ceremony that included the program’s partners.” 

According to the sovereign wealth fund, azm aims to create a pipeline of technically skilled Saudis to meet the needs of PIF’s investments, portfolio companies, and ecosystem partners. It focuses on employer-driven skill development, with 80 percent of training based on hands-on, real-world applications. 

Under the program, PIF signed memoranda of understanding with TVTC and the Colleges of Excellence to manage and deliver training. The agreements cover curriculum development, contracting with local and international providers, overseeing registration and evaluation, and operating training facilities. 

“Future cooperation between Colleges of Excellence and the fund includes launching an academic entity under the azm program to serve as a specialized training body in developing technical and professional skills for Saudi youth,” the Colleges of Excellence posted on its X account.

The fund said azm will offer tailored training at competitive costs, apply rigorous learner selection, and provide financial incentives to cover tuition. Employers partnering with the program will gain access to a job-ready Saudi workforce trained to their specifications. 

PIF said azm leverages its existing experience in delivering training across portfolio companies and taps into a broad network of local and international providers. It also benefits from strong ties with accreditation bodies and access to government funding mechanisms for workforce development.


Saudi Arabia clears VistaJet as first foreign private jet operator 

Saudi Arabia clears VistaJet as first foreign private jet operator 
Updated 20 August 2025
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Saudi Arabia clears VistaJet as first foreign private jet operator 

Saudi Arabia clears VistaJet as first foreign private jet operator 

JEDDAH: Malta-based VistaJet is set to become the first foreign private jet operator allowed to fly domestic routes in Saudi Arabia, after regulators lifted cabotage restrictions to liberalize the Kingdom’s skies. 

VistaJet’s approval comes less than four months after Saudi regulators, on May 1, scrapped rules that had barred international charter operators from offering domestic services — a move aimed at stimulating competition, improving service quality, and expanding the private aviation segment. 

The decision, announced by the General Authority of Civil Aviation, marks a major step in liberalizing Saudi Arabia’s general aviation market as the Kingdom works to attract global investment and boost competitiveness under its Vision 2030 economic transformation plan. 

Awad Al-Sulami, executive vice president for economic policies and logistics services at GACA, said: “Authorizing VistaJet as the first international private jet operator for domestic operations in the Kingdom is a milestone in enhancing the general aviation market in Saudi Arabia.” 

He added: “This step will foster greater competition, stimulate sector growth, and raise the quality of services for private aviation customers in the Kingdom and across the region.” 

VistaJet, which operates under a Maltese air operator certificate and is part of Dubai-headquartered Vista Global Holding, welcomed the decision as a breakthrough for the sector. 

“We are delighted to be working with the Kingdom of Saudi Arabia and GACA, reinforcing our commitment to offering clients reliable, flexible and trusted flying solutions through our global and regional infrastructure,” said Mazen Obaid, president — Middle East at Vista. 

He added: “As a Saudi myself, I am extremely proud and excited for this new venture, and of all the opportunities that I know we can achieve together. We very much look forward to hiring many local experts and investing locally.” 

The move supports GACA’s General Aviation Roadmap under the National Transport and Logistics Strategy, which seeks to position Saudi Arabia as the Middle East’s top aviation hub by 2030 and a global logistics connector between Asia, Africa, and Europe.