Riyadh - Mubasher: The office occupancy levels of Saudi Arabia's Riyadh hiked to 96% amid a 358% surge in the number of foreign business licenses in Saudi Arabia last year, marking the highest levels in at least five years.
Riyadh has witnessed a 6.5% increase in rents in the last 12 months to record SAR 1,560 per square metres, as shown by the latest analysis by global real estate consultant, Knight Frank.
Meanwhile, demand for office space in Jeddah has started to rise, but at a slower pace, due to the launch of new public sector entities.
The prime office rents in Jeddah increased by 2.5% during the first quarter (Q1) of 2022, while Grade B rents recorded a decline of 0.5% over the same period.
The Partner – Head of Middle East Research, Faisal Durrani, said: "Businesses from the world over continue to clamour for a piece of the unfolding economic transformation in Saudi Arabia. The number of international business licenses surged by 358% last year, with most of the demand concentrated on the capital, Riyadh."
The Partner – Valuations & Advisory, Talal Raqaban, commented: "As we slowly move past Covid-19, businesses are rapidly returning to the office on a full-time basis, catalysing the growing demand for offices in Jeddah."
