Advisory says upcoming supply pipeline and foreign ownership measures will support liquidity and market depth
February 18, 2026 | Staff Reporter | KSA | Brokers
More than 950,000 sqm of Grade A office space is expected to enter Riyadh’s market by late 2026, marking a significant expansion of prime supply, according to Savills’ latest Riyadh Office Market Report for Q4 2025.
In the report, Savills states that the upcoming pipeline includes landmark developments such as Diriyah Gate, Prime Business Resort and the Prince Mohammed bin Salman Nonprofit City (Misk), which are set to shape the next phase of the capital’s commercial real estate landscape. The advisory expects the market to transition gradually as this new stock comes online.
The projected supply increase comes amid resilient fundamentals. Grade A office occupancy held steady at 98.5% in Q4 2025, supported by sustained occupier demand and constrained prime availability. Average rents reached SAR 2,333 per sqm, rising 1.0% quarter-on-quarter and 12% year-on-year.
Commercial property transactions totalled SAR 5.26 billion in December 2025, signalling continued activity in the sector. Leasing activity remained consistent during the quarter, with the Technology, Media and Telecommunications (TMT) sector accounting for 60% of total transactions. Relocation activity comprised 60% of concluded deals, while the enquiry pipeline was led by the BFSI sector, generating 50% of total enquiries. Savills reported that 75% of leasing enquiries in Q4 originated from US and UK companies, highlighting sustained international occupier interest
In parallel with the supply pipeline, foreign direct ownership is anticipated next quarter, which Savills said will enhance accessibility for international investors and further support liquidity and market depth. The advisory noted that foreign ownership measures form part of the broader regulatory evolution of the market and are expected to strengthen Riyadh’s position as a regional business hub
Commenting on the findings, Ramzi Darwish, Head of Saudi Arabia at Savills Middle East, said: “Riyadh’s office market continues to reflect the broader strength of the Kingdom’s economic transformation. Sustained occupier demand, high Grade A occupancy levels and steady enquiry activity demonstrate confidence in the market. While rental growth has moderated, market fundamentals remain supportive, particularly as new supply enters the pipeline and foreign ownership measures enhance accessibility for international investors.”
Savills expects that the combination of incoming Grade A supply and foreign ownership measures will contribute to the continued evolution of Riyadh’s office sector, reinforcing market depth as the capital advances its role as a regional and international business destination.
