According to a recent report by JLL, warehouse rents in Riyadh rose by 9.3% year-on-year.
Riyadh leads growth
<According to JLL's report, the capital recorded impressive growth rates in warehouse rental rates across various submarkets ranging from 4.7% to 25%, reflecting a broad demand base for industrial real estate. Gateway Industrial City maintained its prominent position with a rental rate of SR300 per square meter per year, achieving a growth of 5.3%, while rents in Tharwat Logistics reached SR285 per square meter per year.Tiba emerged as the best performing area in Riyadh with an annual growth of 25% in rental prices, while Al Fouzan Industrial City recorded a strong growth of 17.8%.
Jeddah maintains its strategic position
While Jeddah Islamic Port maintained its position as the most expensive industrial site in the Kingdom at 450 riyals per square meter per year, up 7.1%, ahead of the highest rental rates in Riyadh and Dammam, enhancing its value for commercial operations. Despite this strong performance, Jeddah's growth rates remain lower than the capital, with Sarawat achieving 8.3% and Al Nakheel 8%.
Despite this strong performance, Jeddah's growth rates remain lower than the capital.
Dammam's mixed performance
<In Dammam, Khalidiya North recorded the highest rental prices at 235 riyals per square meter per year with a growth of 9%, while Indus Com achieved an exceptional growth of 32%, the highest in the market. The areas on King Abdulaziz Road saw strong momentum with 20% growth despite rental prices remaining at SAR180 per square meter, while prices in the Taawun area declined by 6.3%.Taimur Khan, JLL's director of research for the Middle East and Africa, says the good levels of growth reflect industrial development and improvements in logistics infrastructure, expecting a stronger performance for prime areas near major transportation corridors in the coming months.
Taimur Khan, director of research for the Middle East and Africa at JLL, says
