{"id":77316,"date":"2025-04-29T17:11:09","date_gmt":"2025-04-29T14:11:09","guid":{"rendered":"https:\/\/amlak.net.sa\/?p=77316"},"modified":"2025-11-25T22:24:05","modified_gmt":"2025-11-25T22:24:05","slug":"%d8%aa%d9%82%d8%b1%d9%8a%d8%b1-%d9%8a%d9%83%d8%b4%d9%81-%d8%b2%d9%8a%d8%a7%d8%af%d8%a9-%d9%86%d8%b3%d8%a8%d8%a9-%d8%a5%d8%b4%d8%ba%d8%a7%d9%84-%d8%a7%d9%84%d9%85%d8%b3%d8%aa%d9%88%d8%af%d8%b9%d8%a7","status":"publish","type":"post","link":"https:\/\/amlak.net.sa\/en\/77316\/","title":{"rendered":"Report reveals: Warehouse occupancy in Saudi Arabia drives up rents 16%"},"content":{"rendered":"

The company revealed \u201cKnight Frank<\/a><\/strong>\u201dGlobal Real Estate Consultants announced that the occupancy rate Warehouses<\/a> Saudi Arabia's industrial sector has reached near-full capacity amid an accelerated industrial transformation, with occupancy reaching 98% in Riyadh and 97% in Jeddah, while a sharp increase in demand has pushed warehouse rents in the capital up by 16%.<\/p>\n

In its report on Saudi Arabia's industrial and logistics market, the firm noted that the Kingdom is on track to become the leading industrial center in the Middle East, driven by the growth of e-commerce, government incentive packages, increased local and foreign investments, and significant infrastructure expansion.<\/p>\n

According to the report \u201cKnight Frank<\/a><\/strong>\u201dThe Saudi industrial sector recorded remarkable growth during 2024, with 1,346 new industrial licenses issued, with capital investments amounting to about 50 billion riyals. But the shortage of storage space and logistics has led to upward pressure on rents, especially in Riyadh.<\/p>\n

He noted that average warehouse rents in the capital rose to 208 riyals per square meter, while rents for prime locations exceeded 250 riyals. In areas such as Masanah, Al Bariya, Al Farouq and Al Manakh, rents jumped by more than 20% as a result of strong demand, while the total inventory of warehouses and logistics in Riyadh reached about 28 million square meters.<\/p>\n

In Jeddah, average rents were recorded at around SR238 per square meter with an occupancy rate of 97%. The city continues to expand at a steady pace, with inventory reaching 19.8 million square meters and is expected to grow by 15.5% by 2030.<\/p>\n

Al Khumra is the beating heart of logistics in Jeddah, accounting for 82% of total inventory alone. The area has benefited from small warehouse development projects through 2024 to strengthen its position as a strategic logistics corridor linking industrial areas to ports.<\/p>\n

Government support through entities such as Modon and Public Investment Fund-linked organizations continues to drive the expansion of industrial zones. While no major projects will be delivered in 2024, the market has seen the signing of mega agreements that point to a wave of expansion over the next four years.<\/p>\n

Knight Frank explained that the trend in the industrial sector is toward custom-built projects to meet the needs of advanced industries, reflecting a paradigm shift in the Kingdom's industrial planning.<\/p>\n

The year 2024 saw the signing of a number of major deals in the sector, most notably Saudi real estate developer Kaden's partnership with Germany's DB Schenker to expand logistics capabilities, GFH Group's collaboration with Panattoni Saudi Arabia to develop 500,000 square meters of modern facilities, and a joint venture between Arcapita and Rakaz to establish an advanced logistics complex in Riyadh.<\/p>\n

The report identifies sustainability as one of the key drivers of the market, noting that major companies such as Maersk and Agility are leading the development of green infrastructure through the use of solar energy and energy-efficient storage solutions, furthering the Kingdom's environmental goals.<\/p>\n

The establishment of special economic zones such as the King Salman Automotive Park in King Abdullah Economic City and the Integrated Economic Zone in Riyadh are playing a key role in accelerating the growth of logistics and supply chains. These zones operate through public-private partnerships, making them attractive to global investments and companies.<\/p>\n

The report noted that FDI reforms have created a more open and competitive market, prompting multinational companies to enter into strategic partnerships with local entities to establish their logistics businesses within the Kingdom.<\/p>\n

Saudi Arabia remains a pivotal center for global business expansion, said Adam Wynne, Partner and Head of Commercial Agency at Knight Frank. The sector is undergoing a remarkable transformation driven by technological advances, a focus on sustainability, and increased international cooperation.<\/p>\n

\u201cThe Kingdom continues to implement the Vision 2030 agenda and is witnessing emerging trends such as build-to-rent projects, automation, and cross-border investments that are reshaping the sector and opening the door for tremendous growth in the coming years.\u201d.<\/p>","protected":false},"excerpt":{"rendered":"

Reading time: <\/span> 2<\/span> Minutes<\/span><\/span>Saudi Arabia's industrial warehouses have reached near-full occupancy amid an accelerated industrial transformation, with occupancy reaching 98% in Riyadh and 97% in Jeddah, with a sharp increase in demand and warehouse rents in the capital rising by 16%, according to Knight Frank, the global real estate consultancy. The company noted in its report on the industrial market. Read more<\/a><\/p>","protected":false},"author":27,"featured_media":77319,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"0","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[117],"tags":[],"class_list":["post-77316","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industrial-logistics"],"acf":{"amlak_post_excerpt":"\u0646\u0645\u0648 \u0627\u0644\u062a\u062c\u0627\u0631\u0629 \u0627\u0644\u0625\u0644\u0643\u062a\u0631\u0648\u0646\u064a\u0629 \u0648\u0627\u0644\u062d\u0648\u0627\u0641\u0632 \u0627\u0644\u062d\u0643\u0648\u0645\u064a\u0629 \u0648\u0627\u0644\u0627\u0633\u062a\u062b\u0645\u0627\u0631\u0627\u062a \u0648\u0627\u0644\u0628\u0646\u064a\u0629 \u0627\u0644\u062a\u062d\u062a\u064a\u0629 \u064a\u0632\u064a\u062f\u0627\u0646 \u0627\u0644\u0637\u0644\u0628 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