The report highlights that landlord-favourable conditions dominate the two cities, with prime and Grade A office vacancies at historic lows.
In Riyadh, prime office spaces registered a vacancy rate of just 0.5 per cent in Q2 2025. Grade A and B vacancies were also constrained at 3.8 per cent and 2.9 per cent respectively. Jeddah mirrored this trend with Grade A and B vacancies at 3.3 per cent and 2.2 per cent.
Saudi real estate
This surge in occupier demand has fuelled notable rental increases. Prime rents in Riyadh rose 7.3 per cent year-on-year to reach SR3,630 ($968) per sq. m. per annum, with King Abdullah Financial District (KAFD) exceeding SR4,000 ($1,067) per sq. m.
Jeddah also recorded solid growth, with Grade A rents rising 4.3 per cent to SR1,393 ($372) and Grade B rents up 6.5 per cent to SR933 ($249) per sq. m.
The Dammam Metropolitan Area (DMA) presented higher vacancy rates — 17.2 per cent for Grade A and 21.4 per cent for Grade B — but still registered rental growth. Grade A rents increased by 8.2 per cent to SR994 ($265) per sq. m. per annum, reflecting continued demand despite oversupply.
Saud Al Sulaimani, Country Lead and Head of Capital Markets at JLL Saudi Arabia, said: “The continued expansion of the KSA office market directly reflects the Kingdom’s strategic vision for economic diversification and urban development.
“Riyadh’s sustained performance, driven by a flight to quality and the Regional Headquarters Program, solidifies its position as a key business hub.”
He added that the market is evolving with a more diverse occupier base and greater demand for flexible workspaces and premium amenities.
Riyadh’s total office stock reached 8.1 million sq. m. in Q2 2025, with 0.66 million sq. m. due for completion by year-end. High demand has driven residential-to-office conversions and spurred leasing in the city’s northern districts.
Notably, healthcare, pharmaceuticals, and technology companies joined the leasing momentum.
Jeddah added 81,887 sq. m. of new office space in H1 2025, bringing total stock to 2.97 million sq. m. A further 42,680 sq. m. of gross leasable area (GLA) is set to be delivered in H2 2025.
