Riyadh office rents stabilise as Grade A occupancy holds at 98%, says Savills

(MENAFN- Savills) Riyadh’s office market recorded broadly stable rents in the third quarter of 2026, with Grade A occupancy remaining high at 98%, according to Savills latest Riyadh Office Market Report. Against a backdrop of geopolitical uncertainty, occupiers adopted a more cautious approach to leasing, prioritising short-term renewals, cost certainty and immediately available space.
Average asking rents across three of the four monitored office zones were unchanged or recorded a marginal decline during the quarter. Zone A, which includes King Abdullah Financial District (KAFD), Olaya Lifestyle and Pavilions Community, continued to command the highest average rent at SAR 2,860 per sq m per annum, despite a 0.7% quarterly decline.
Rents in Zone B, encompassing Riyadh Front Business Area, Riyadh Business Gate and Granada Business Park, remained steady at SAR 2,480 per sq m per annum. Zone C, which includes Digital City, Kingdom Centre and Olaya Towers, also recorded no quarterly change, with average rents of SAR 2,465 per sq m per annum. Annual rental growth stood at 1.2% in Zone B and 5.8% in Zone C, while Zone A recorded a marginal annual decline of 0.3%.
Zone D, which includes Laysen Valley and the Diplomatic Quarter, recorded the strongest growth, with average asking rents rising 1.6% quarter on quarter to SAR 2,470 per sq m per annum, representing an annual increase of 9.8%
Harry Goodson Wickes, Head of KSA and Northern Gulf at Savills, said, “Geopolitical uncertainty is prompting occupiers to take a more measured approach to their office requirements, with many favouring shorter renewals and retaining flexibility before committing to longer-term expansion. At the same time, Grade A occupancy remains high, and international corporate commitments continue, reflecting Riyadh’s longer-term appeal as a business destination.
Businesses are placing greater emphasis on space that is available now and provides clarity on costs. As new supply comes forward, occupiers should have a broader choice of locations and workplace formats, with access, amenities, fit-out readiness and lease terms playing an increasingly important role in their decisions.”
The report highlights more moderate requirements from new market entrants compared with earlier quarters. Occupiers continued to favour immediately available fitted or shell-and-core offices, while pre-leasing remained challenging where projects carried construction risk.
Demand for flexible workspace also increased as businesses sought to manage changing space requirements. International operators are targeting Riyadh through management agreements and profit-sharing models, with further market entry expected to expand workspace choice and competition.
KAFD and surrounding areas remained a focus for occupier interest, including Prime Business Resort and nearby projects. Availability, access and operational considerations are encouraging businesses to consider locations beyond core KAFD.
International corporate commitments continued during the quarter. Deutsche Bank and BNP Paribas secured regional headquarters licences in July and August, respectively, while Nokia opened a research and development centre in September. Greenberg Traurig relocated its Riyadh operations to Kingdom Centre, and Temasek announced plans to establish a Riyadh office in 2027.
More than 2.5 million sq m of additional Grade A office space is expected between 2026 and 2030, although some completions initially anticipated in 2026 are likely to move into subsequent years. New developments expected from 2027 should gradually ease supply constraints and broaden tenant choice.
Savills expects headline rents to remain broadly stable, with greater flexibility in leasing terms and incentives supporting activity. Five-year rent controls are also providing occupiers with greater cost certainty.

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