Property Articles Real Estate Articles The reality and future of office space
Abdulrahman bin Ali al-Qut
Saudi Investment Minister Khalid Al-Falih said that the number of companies that have obtained licenses for their regional headquarters in Saudi Arabia has reached 180 companies so far, compared to the target of 160 companies.
Saudi Investment Minister Khalid Al-Falih said. <Al-Falih told Bloomberg that the number of companies receiving licenses for their regional headquarters is 10 per week.
When looking at this amount of commercial companies and how to serve them and enhance their presence in our country, we must first think about their headquarters and offices that suit their needs... How is the market for office space in the Kingdom, especially in Riyadh? <According to JLL's report on the real estate market in Saudi Arabia, there was a recovery in the performance of the office space sector in the Kingdom during the third quarter of this year, which witnessed the completion of about 130,500 m2 of office space in Riyadh, bringing the total in the city to 5.1 million m2. Approximately 110,000 square meters of office space is scheduled to be delivered in Riyadh in the final months of this year.
<However, I believe that the office space market is still very hungry for this type of real estate product, and when we reviewed the website of the Off-plan Sales and Leasing Committee - Wafi - as the official body that grants this privilege - off-plan sales - I found only three licenses for office real estate projects! All of them in Jeddah! Also, when we go to the King Abdullah Financial Center (KAFD), we find that the occupancy rates are very high, as the office spaces in KAFD extend over more than 900,000 square meters.
This is proof that the opportunity is still possible for all real estate developers, especially if we know that this type of real estate activity is accompanied by the best rental returns, which range from 9 % to 12 %...
In order to fulfill the desires and needs of companies coming to the market, there must be diversity and options in the office spaces that meet the needs of companies and from these office options:
- Private offices:
One of the most common types of office space in Saudi Arabia. These offices are independent and dedicated to only one company, and have all the facilities needed to work including furniture and technical equipment. These offices are available in commercial complexes and business centers in major cities such as Riyadh, Jeddah, and Dammam.
- Shared Offices:
They are a common type of office space in Saudi Arabia. These offices provide a shared working environment for multiple businesses and tenants, and include common facilities such as meeting rooms, breakout areas, and shared kitchens. Shared offices are an ideal option for startups, freelancers, and small businesses looking for a sustainable environment and shared expenses.
Shared offices are an ideal option for startups, freelancers, and small businesses looking for a sustainable environment and shared expenses.
- Temporary office spaces:
It is a flexible option for businesses that need an office for a limited period of time. These spaces are rented out for a certain period of time and are equipped with the necessary furniture and fixtures. These spaces can be useful for companies working on temporary projects or for companies facing a temporary increase in work.
- Virtual Offices:
Virtual offices provide a flexible and cutting-edge work environment for businesses and organizations. In these spaces, there is no physical office presence, but they provide necessary services such as a business address, mailing services, and telephone reception. Virtual offices are a suitable option for businesses that mainly work remotely or for companies looking to expand their presence in Saudi Arabia without the need for a physical office.
My message to developers.
My message to real estate developers and investors, opportunities do not repeat themselves and the office space market in Saudi Arabia is witnessing remarkable growth. Diversity in real estate products has become an imperative, to bridge the gap between supply and demand and diversity is the best support in the stages of real estate market fluctuations.
Virtual offices are an option for companies that work mainly remotely or for companies looking to expand their presence without the need for a physical office.
