Real estate firm CBRE reported in a recent report that the average office rents in Riyadh rose by 11.8% in the first quarter of this year, while Jeddah saw an increase of 13.6% during the same period.

As for thethe residential sector, the report showed that average villa prices in Riyadh rose by 3.6% in the first quarter of this year, reaching approximately 5,800 riyals per square meter.

With regard to industrial rents, they recorded a slight increase in major cities, rising by 8.1% in Riyadh, 3.1% in Jeddah, and 4.6% in Dammam.

For his part, Hattan Al-Sharif, Senior Research Analyst at CBRE Saudi Arabia, explained in an interview with “Al Arabiya Business” that the residential market in Riyadh has seen a rise in villa prices over the past two years, and he expects prices to rise further over the coming year due to the anticipated increase in the city’s population. Al-Sharif added that a large segment of buyers is seeking high-quality housing, which aligns with residential projects in Riyadh and Jeddah.

Al-Sharif noted that the northern Riyadh area saw the highest price increases over the past three quarters, given its proximity to the city’s attractions and the higher quality of projects there compared to those in western Riyadh.

Regarding Class A office space, Al-Sharif noted that the occupancy rate reached 100% over the past three quarters, as supply failed to meet the demand from newcomers to Riyadh.