The latest Riyadh office Market in Minutes report for Q4 2023 is out now, which reveals that Riyadh’s office market remained robust in Q4 2023, showcasing remarkable agility. Ejar data further underscores this momentum, due to a 31% surge in office rent transactions in 2023 compared to 2022. Whilst rental values remained stable in Q4 2023, the overall upward trend is expected to continue in 2024, driven by factors like Vision 2030’s FDI goals and sustained economic growth.
Here are some key highlights from the report:
- Riyadh is witnessing a surge in corporate interest, fuelled by the Kingdom’s ambitious economic diversification plan. Riyadh’s expanding market and opportunities are attracting international companies that are taking a longer-term view of the market. This vote of confidence fuels the city’s rise as a magnet for leading players across industries.
- Despite a projected dip in GDP to -0.5% in 2023 due to strategic oil adjustments, Saudi Arabia's non-oil sector remained robust at 4.1%, driving the economy towards growth and paving the way for a swift rebound in overall economic growth at 5% in 2024 as oil production in the Kingdom normalises.
- Leasing activity tracked by Savills in Q4 2023 revealed legal firms dominating 40% of completed transactions, followed by tech companies, Telecommunication, Media and Technology (TMT) firms, and engineering and manufacturing companies at 20% each. Companies from the pharmaceutical, IT/ITES, and BFSI sectors accounted for 57% of total occupier inquiries.