The Riyadh office market growth has outpaced every major city in the world, with a staggering 5.2% growth rate in the first quarter of 2025, according to global property consultancy Savills. This makes the Saudi capital the fastest-growing office market on the planet, outstripping traditional hubs like Dubai, London, and New York.
This milestone is seen as a reflection of Saudi Arabia’s booming economy, robust investment environment, and ambitious Vision 2030 goals.
Strong Demand Driving Riyadh Office Market Growth
According to Savills’ “Prime Office Costs” report, Riyadh office market growth was powered by strong demand from both international firms and local companies. Many are setting up or expanding operations in the city to benefit from Saudi Arabia’s rapid economic transformation.
The report analyzed prime office rental growth across 30 key global cities, and Riyadh topped the list. This growth is based on net effective costs, which include base rents and incentives such as rent-free periods.
Paul Tostevin, director of Savills World Research, said:
“Riyadh’s performance underlines the attractiveness of the Saudi market. Companies are being encouraged to establish regional headquarters in the capital, fueling unprecedented demand for top-tier office space.”
Vision 2030 and Government Policy Are Major Catalysts
The Kingdom’s Vision 2030 plan has been a central driver behind the Riyadh office market growth. This national roadmap, introduced by Crown Prince Mohammed bin Salman, aims to diversify the economy away from oil by fostering sectors such as tourism, finance, and technology.
One of the major initiatives under this plan is the Regional Headquarters Program (RHQ), which requires foreign companies to establish regional offices in Saudi Arabia by 2024 to qualify for government contracts. This has led to a flood of new tenants looking for prime office locations.
Government-backed megaprojects like NEOM and Qiddiya have also added to investor and business confidence in the Kingdom’s future, creating additional pressure on Riyadh’s office space supply.
Limited Supply Creates Premium Market Conditions
With demand on the rise, premium office spaces in Riyadh are becoming scarce. Savills notes that the top-tier or “Grade A” office space is limited, which has contributed to the rapid rental increases.
Landlords now have the upper hand in negotiations, and tenants are willing to pay a premium for high-quality, strategically located office properties. Many companies are also focusing on employee well-being, opting for offices that offer natural light, wellness spaces, and proximity to public amenities.
This mismatch between supply and demand is expected to persist for the next few years, putting continued upward pressure on rents.
Comparisons With Other Global Cities
While Riyadh office market growth hit 5.2%, other global cities lagged behind. Dubai recorded a 4.7% growth, London saw a 2.4% rise, and New York showed modest increases of just under 1%.
What makes Riyadh’s performance more notable is that it’s a relatively young office market compared to these established global hubs. The city has gone from being an emerging player to a market leader in a short time.
The data shows that Riyadh is no longer just catching up—it’s setting the pace.
What Tenants Are Looking For in Riyadh
Savills reports that companies relocating to Riyadh are not just looking for space—they want smart, modern, and efficient workplaces that reflect their brand and attract talent.
Key tenant demands include:
- Flexible layouts and collaborative spaces
- LEED-certified and sustainable buildings
- High-speed digital connectivity
- Proximity to transport hubs and retail zones
These evolving expectations have pushed developers and landlords to upgrade existing properties or design new projects that meet international standards.
Savills Expects Continued Growth in 2025 and Beyond
Savills anticipates that the Riyadh office market growth will maintain its momentum through the remainder of 2025. Economic stability, pro-business policies, and global investor confidence all support this outlook.
Moreover, the city’s younger population and growing expatriate workforce are also driving commercial demand, particularly in sectors like fintech, media, healthcare, and logistics.
However, the report also cautions that continued success will depend on how quickly new office supply comes online and how effectively urban infrastructure supports the growing business community.
Riyadh’s Rise Reinforces Saudi Arabia’s Global Economic Vision
The explosive Riyadh office market growth serves as a powerful indicator of Saudi Arabia’s growing influence on the world economic stage. While oil still plays a role, the country is increasingly known for business innovation, infrastructure development, and global partnerships.
This trend also sends a clear message to global investors: Riyadh is not only open for business—it’s leading the way.
Conclusion
Riyadh’s 5.2% growth in office market rentals in Q1 2025 isn’t just a real estate statistic—it’s a symbol of a city and a nation undergoing a major transformation. Fueled by strong demand, limited supply, and supportive policies, the Riyadh office market growth is showing no signs of slowing down.
As global companies take note and competition for office space intensifies, Riyadh is positioning itself as the Middle East’s next major business capital.
Read More: Mastercard Launches First Cyber Resilience Centre in Saudi Arabia
