These banking institutions received their licences in July and August, further strengthening the influx of international companies establishing operations in the Saudi capital. Despite growing caution among firms regarding long-term leasing commitments, financial institutions and technology firms sustained strong demand for top-tier office spaces, according to the property consultant.
Additional corporate moves included Nokia launching a research facility in September, while legal firm Greenberg Traurig transferred its Riyadh operations to Kingdom Centre. Investment firm Temasek also revealed intentions to open an office in the city by 2027, the report stated.
Market forces Shift
The latest corporate activity coincides with Riyadh’s office sector evolving toward more discriminating tenant behavior. While occupancy levels remain raised, rental prices either held steady or experienced slight declines across three of the four monitored business districts, Savills observed.
Despite this cautious approach, Grade A office utilization persists at high levels, with ongoing international corporate commitments showing Riyadh’s enduring attractiveness as a business hub, he added.
Rental Price Developments
The business district encompassing King Abdullah Financial District, Olaya Lifestyle, and Pavilions Community maintained its position as the most expensive among the four tracked areas, with annual asking rents averaging SAR 2,860 per square meter.
Expansion and Flexibility in Demand
Over the next four years, an additional 2.5 million square meters of Grade A office space is projected to enter the market, though some developments originally slated for completion in 2026 may now be delayed to subsequent years.
Savills anticipates that new buildings arriving from 2027 onward will gradually reduce supply pressures and provide tenants with expanded location choices. The consultancy predicts that headline rental rates will remain largely stable, while increased flexibility in lease terms and tenant incentives will support market activity as new properties debut.
Simultaneously, the demand for flexible workspace solutions has risen as companies adjust to evolving space needs.
