Riyadh’s office market continues to demonstrate steady underlying momentum, with occupier demand remaining consistent across Q1 2026. This reflects a market transitioning towards a more balanced phase of growth, supported by ongoing economic diversification and sustained business activity.

Grade A office occupancy levels held firm at 98.5%, highlighting continued pressure on prime supply. Leasing activity was supported by a diverse range of sectors, including BFSI, engineering, manufacturing, TMT and pharmaceutical occupiers.

Demand continues to be driven by smaller office requirements, with units below 1,000 sq m accounting for the majority of enquiries. This reflects a preference for flexible and efficient workspace solutions among occupiers.

At the same time, rental growth has begun to moderate, increasing by 1.0% quarter-on-quarter and 6% year-on-year. This indicates a shift towards a more measured pace of growth following previous periods of stronger increases, supported in part by the implementation of Riyadh’s five-year rent stabilisation policy and softer external conditions.

Riyadh’s growing appeal as a regional business hub continues to underpin demand, supported by sustained inflows of multinational companies. As of early 2026, more than 700 global companies have established regional headquarters in the city, with international interest remaining strong.

Looking ahead, the market is expected to continue evolving as new supply is delivered, with over 700,000 sq m of Grade A office space anticipated by late 2026. While this will provide greater choice for occupiers, demand for well-located, high-quality assets is expected to remain a key feature of the market.

For detailed insights into Riyadh’s office market, download the full Q1 2026 report now.