Saudi Arabia Office Real Estate Market Size, Trends & Outlook 2025-2033
Saudi Arabia Office Real Estate Market Overview
Market Size in 2024: USD 19,490.0 Million
Market Size in 2033: USD 36,146.3 Million
Market Growth Rate 2025-2033: 7.1%
According to IMARC Group's latest research publication, " Saudi Arabia Office Real Estate Market Report by Property Type (High-rise Commercial Buildings, Business Parks, Mixed-use Developments, Coworking Spaces), Rental Model (Traditional Long-term Leases, Flexible Lease Arrangements, Coworking/Shared Office Spaces), Classification (Class A, Class B, Class C), and Region 2025-2033", the Saudi Arabia office real estate market size reached USD 19,490.0 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 36,146.3 Million by 2033, exhibiting a growth rate (CAGR) of 7.1% during 2025-2033.
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Growth Factors in the Saudi Arabia Office Real Estate Market
- Vision 2030 and Economic Diversification
Saudi Arabia’s Vision 2030 is a key catalyst for the office real estate market, driving economic diversification away from oil dependency. The initiative fosters growth in sectors like technology, finance, and tourism, increasing demand for modern office spaces. For example, the King Abdullah Financial District (KAFD) in Riyadh has attracted multinational corporations like PwC, requiring premium office facilities. Government incentives for startups and foreign investment further boost demand for co-working and flexible office spaces, encouraging developers to build state-of-the-art commercial properties to accommodate new businesses, thus fueling market expansion.
- Urbanization and Mega-Projects
Rapid urbanization and ambitious mega-projects are significantly boosting the office real estate market. Cities like Riyadh and Jeddah are expanding, with projects such as NEOM and Qiddiya creating new business hubs that require office infrastructure. For instance, NEOM’s business district is designed to house tech firms, necessitating cutting-edge office spaces equipped with smart technologies. This urban growth attracts domestic and international companies, increasing the need for high-quality office environments. Developers are responding by constructing sustainable, mixed-use complexes, ensuring the market grows to meet the demands of these transformative projects.
- Growth of the Private Sector
The rise of the private sector in Saudi Arabia, supported by Vision 2030’s privatization efforts, is driving demand for office real estate. Industries like IT, healthcare, and logistics are expanding, requiring dedicated office spaces for operations and innovation. A case study of Saudi Aramco’s partnerships with tech firms highlights the need for collaborative office environments in Dhahran’s techno-valley. Additionally, the growth of SMEs, supported by government funding, fuels demand for affordable and flexible office solutions like co-working spaces, pushing developers to diversify their offerings and contributing to robust market growth.
Key Trends in the Saudi Arabia Office Real Estate Market
- Rise of Flexible and Co-Working Spaces
The Saudi Arabia office real estate market trends indicate a rising demand for flexible office spaces and co-working environments, driven by shifting work dynamics and economic transformation. Professionals and startups are increasingly seeking cost-effective, scalable solutions, leading to the proliferation of co-working hubs like WeWork in Riyadh. These spaces offer shared amenities and networking opportunities, making them particularly appealing to freelancers and small businesses. According to recent trends in the Saudi Arabia office real estate market, even large corporations are adopting hybrid work models, opting to lease flexible office setups to accommodate fluctuating workforce needs. This evolution reflects broader changes in workplace preferences and supports the goals of economic diversification, prompting developers to incorporate co-working facilities into new office projects to align with emerging market demands.
- Integration of Smart and Sustainable Buildings
Sustainability and smart technology are shaping the office real estate market, aligning with Saudi Arabia’s environmental goals. Developers are constructing energy-efficient buildings with features like solar panels and smart HVAC systems. For example, KAFD’s office towers incorporate IoT-enabled systems for lighting and temperature control, reducing operational costs. Tenants prioritize green certifications like LEED, which enhance property value and appeal. This trend supports Vision 2030’s sustainability focus, driving demand for eco-friendly office spaces that offer long-term cost savings and attract environmentally conscious businesses, reshaping the market landscape.
- Shift Toward Mixed-Use Developments
Mixed-use developments are gaining traction in Saudi Arabia’s office real estate market, combining office spaces with retail, residential, and leisure facilities. This trend caters to businesses seeking vibrant, accessible locations that enhance employee satisfaction. Riyadh Season’s business zones, for instance, integrate offices with entertainment and dining options, creating dynamic work environments. These developments attract multinational firms and startups alike, offering convenience and fostering collaboration. As urbanization accelerates, developers are prioritizing mixed-use projects to meet diverse tenant needs, driving innovation in office real estate and supporting market growth.
Saudi Arabia Office Real Estate Industry Segmentation:
The report has segmented the market into the following categories:
Property Type Insights:
- High-rise Commercial Buildings
- Business Parks
- Mixed-use Developments
- Coworking Spaces
Rental Model Insights:
- Traditional Long-term Leases
- Flexible Lease Arrangements
- Coworking/Shared Office Spaces
Classification Insights:
- Class A
- Class B
- Class C
Regional Analysis:
- Northern and Central Region
- Western Region
- Eastern Region
- Southern Region
Competitive Landscape:
The competitive landscape of the industry has also been examined along with the profiles of the key players.
Future Outlook
The Saudi Arabia office real estate market is poised for sustained growth, driven by Vision 2030’s economic reforms and rapid urbanization. The demand for flexible, sustainable, and tech-enabled office spaces will continue to rise as private sector expansion and foreign investment accelerate. Mega-projects like NEOM and KAFD will further solidify Saudi Arabia’s position as a regional business hub, attracting global firms and necessitating modern office infrastructure. While challenges like oversupply in certain areas may emerge, the focus on mixed-use developments and smart buildings ensures resilience. Developers must innovate to meet evolving tenant expectations, promising a vibrant future for the market.
Research Methodology:
The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.
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