Saudi Arabia’s real estate sector saw its positive momentum continue in the second quarter of 2023, says CBRE

Saudi Arabia’s real estate sector saw its positive momentum continue in the second quarter of 2023, says CBRE

Riyadh – Saudi Arabia’s real estate market maintained its growth momentum in the second quarter of 2023, with most sectors recording high levels of activity across the Kingdom’s major cities.

Looking at Saudi Arabia’s office sector figures, occupier demand from international and government entities continued to be prevalent in Riyadh. Office rents in Riyadh maintained strong performance levels, with Grade A rents growing by 12.2% and Grade B rents rising by 14.4% year-on-year to Q2 2023. Average occupancy for both segments in the capital also rose, with Grade A occupancy reaching 99.9% and Grade B offices now standing at 99.4%. In Jeddah, the Grade A segment recorded the highest rate of growth in rents among CBRE’s tracked cities, as average rents grew by 20.7% in the year to Q2 2023, while Grade B office rents improved marginally by 1.0% over the same period. Average occupancy for both segments rose, as Grade A and Grade B occupancies now stand at 92.5% and 80.0%, up 4.8% and 5.4% from a year earlier respectively. In the year to Q2 2023, Dammam’s Grade A rents increased by 7.6%, while Grade B offices saw an uptick of 1.6%. As for Khobar, Grade A rents surged by