Riyadh office occupancy levels hit 98%

Riyadh office occupancy levels hit 98%

Riyadh: Unprecedented demand for prime office space in Riyadh has taken Grade A office occupancy levels to 98%, according to the latest analysis by global real estate consultancy, Knight Frank.

Faisal Durrani, Partner – Head of Middle East Research, explained: “As the Kingdom’s economic transformation plan unfolds, business activity is rising at an extraordinary pace. 70 firms have now committed to relocating their regional HQ’s to Riyadh, including Aldeham Education Group (AEG) and French rolling stock manufacturer Alstom.

“The number of foreign investment licenses issued during Q2 was nearly 700% up on last year, led by retail, construction, manufacturing, hotels and F&B and business services companies, all of whom are contributing to the record level of office requirements we are recording. Separately, FDI levels hit SAR 3.5 billion during Q2, across 49 deals, up from 37 in Q1, which alone has created 2,000 new jobs which will inevitably filter through to the office market in the form of new space requirements”.

Andrew Love, Partner – Head of Occupier-Landlord Strategy & Solutions and Head of Middle East Capital Markets added: “Unsurprisingly, office lease rates continue to climb in the wake of growing demand. Indeed, average lease rates for prime office space have increased by