JLL has revealed that the office space sector in Saudi Arabia has seen strong performance in the first half of 2024, driven by the government's efforts to promote and attract foreign investment in the Kingdom and the expansion of licensing for regional headquarters for major corporations. Saudi Arabia's office space sector continues to be highly competitive, benefiting from growing demand from local and international companies. In Riyadh, 52,000 square meters of new office space was added during the first half of 2024, bringing the total supply to 5.2 million square meters. Jeddah's inventory remained steady at 1.21 million square meters, with 249,000 square meters of office space expected to be added in Riyadh and 48,000 square meters in Jeddah during the second half of the year.
<The report noted that the demand for high-quality corporate offices has increased significantly, especially in the northern region of Riyadh, which is characterized by easy access, less traffic congestion and the availability of premium office space. As a result, Class A rents in Riyadh increased by 19% annually to reach SAR 2,090 per square meter. Jeddah saw a year-on-year increase in Class A rents by 11% to reach SAR 1335 per square meter.
<The report also showed that government bodies in the Dammam region are boosting demand for office space, resulting in average rents rising by 10% until Q2 2024. Companies operating in Saudi Arabia are benefiting from a favorable investment environment and government facilities, boosting demand for new office space and encouraging the expansion and upgrade of existing offices.
The report noted that government agencies in the Dammam area are boosting demand for office space, resulting in an average rent increase of 10% until Q2 2024.
