Saudi Arabia Office Real Estate Market: Vision 2030, Workspace Transformation & Investment Flows

According to IMARC Group's latest research publication, the Saudi Arabia office real estate market size reached USD 20,874.6 Million in 2025. The market is expected to reach USD 37,573.8 Million by 2034, exhibiting a growth rate (CAGR) of 6.75% during 2026-2034.

How AI is Reshaping the Future of Saudi Arabia Office Real Estate Market

• Predictive Building Maintenance: AI-powered systems monitor HVAC units, elevators, and facility equipment 24/7, flagging potential failures before breakdowns occur, cutting downtime by 20-30% and reducing energy costs in smart buildings.
• Automated Property Management Platforms: AI-driven CRM systems handle routine admin tasks, lease scheduling, and tenant communications automatically, letting property managers focus on relationship-building rather than paperwork and improving operational efficiency.
• Smart Energy Optimization: Machine learning algorithms adjust lighting and climate controls based on real-time occupancy data and environmental conditions, reducing electricity consumption by 15-25% while supporting Saudi sustainability goals.
• Market Analytics and Valuation: AI forecasting engines query massive datasets to tighten property valuation models, predict rental demand, and accelerate leasing decisions, helping landlords optimize pricing strategies and vacancy rates.
• Digital Twin Technology: Virtual replicas of physical buildings enable real-time performance monitoring, predictive analytics for space utilization, and scenario testing for layout changes, transforming how developers design and manage office properties.

How Vision 2030 is Revolutionizing Saudi Arabia Office Real Estate Industry

Vision 2030 is reshaping Saudi Arabia's office landscape through strategic policies and mega-development projects. The Regional Headquarters (RHQ) program offers 30-year tax exemptions and regulatory support, attracting 675 international firms including Amazon, Microsoft, GE, Unilever, PepsiCo, Siemens, Northern Trust, IHG Hotels & Resorts, PwC, and Deloitte to establish bases in Riyadh and other cities. Each RHQ license requires at least 15 senior employees and oversight of two MENA markets, ensuring sustained office demand. Mega-projects are creating entirely new business districts—New Murabba ($50 billion investment in Riyadh) and Jeddah Central ($12.5 billion) are spawning fresh commercial hubs aligned with Expo 2030 and the 2034 FIFA World Cup. NEOM, spanning 26,500 square kilometers, operates entirely on renewable energy and is attracting global talent. Vision 2030's 85% target completion rate by end-2024 demonstrates commitment, with non-oil revenues reaching $137.29 billion and private sector GDP contribution hitting 47%.

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Saudi Arabia Office Real Estate Market Trends & Drivers:

Economic diversification and urbanization are driving unprecedented office demand. With 675 multinational firms establishing regional headquarters under the RHQ program, the Kingdom is becoming a corporate hub for MENA operations. Riyadh captures 51.1% of national office demand, with Grade A space commanding 47.9% market share and rental rates surging 23% year-on-year. Major financial services expansions—EY opened an 11,691-square-meter MENA headquarters in King Abdullah Financial District (KAFD), while other advisory firms expand operations—are fueling absorption. Saudi credit rose 16.26% year-on-year to USD 827.2 billion in March 2025, with real estate lending up 40.5%, reflecting strong investment appetite. Fintech companies thrive under sandbox regulations, boosting demand for smaller, tech-ready office floorplates. The government allocated over USD 500 billion to megacity and smart infrastructure projects under Vision 2030 by end-2024, generating employment and requiring corporate facilities.

Grade A office spaces with sustainability credentials and smart features are experiencing surging tenant preference. KAFD's 94 towers earned LEED Platinum certification, setting benchmarks for environmental performance. Forbes International Tower is registered for Zero Carbon Certification, running on 100% renewable energy split between hydrogen and solar power. The Saudi Building Code 2024 enforces energy conservation standards, prompting retrofits across existing inventory and raising barriers for outdated stock. Corporate ESG mandates push landlords to install IoT building management systems, renewable power, collaboration areas, and wellness amenities. Rent spreads between Grade A and lower-class buildings are widening significantly—secondary assets risk rapid obsolescence unless modernized. Smart cities market in Saudi Arabia reached USD 6.72 Billion in 2024 and is expected to reach USD 18.74 Billion by 2030, with IoT, AI, and cloud computing integration transforming office infrastructure. Hybrid work models are reshaping space requirements, but quality-over-quantity preferences keep premium rents firm.

Giga-projects and new business districts are fundamentally altering the supply landscape. Kingdom Holding Company resumed construction on Jeddah Tower in January 2025 (USD 26.6 billion investment, targeting over 1,000 meters height), which will include premium office components. ROSHN underwent rebranding in November 2024, adding 4 million square meters of commercial, office, and hospitality spaces across its portfolio. NEOM and Samsung C&T invested USD 347 million in December 2024 to automate construction processes, slashing onsite labor needs by 80% and accelerating delivery timelines. Qiddiya, the 376-square-kilometer entertainment and culture hub established in 2018, opened Six Flags Qiddiya City in 2025, requiring supporting office and administrative facilities. The Red Sea project caps visitors at one million annually by 2030, creating hospitality and management office demand. Construction material costs have risen above Gulf averages—a USD 1.5 trillion national project pipeline strains labor and materials—while the 5% Real Estate Transaction Tax introduced in April 2025 adds financing considerations for developers.

Saudi Arabia Office Real Estate Market 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 Insights:

• 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.

Recent News and Developments in Saudi Arabia Office Real Estate Market

• January 2025: Kingdom Holding Company resumed construction on the Jeddah Tower with a USD 26.6 billion investment, aiming for a height surpassing 1,000 meters and positioning it to become the world's tallest building with premium office space.
• March 2025: The Regional Headquarters program reached 675 licensed international firms in Riyadh, with each license requiring minimum 15 senior employees and oversight of two MENA markets, strengthening corporate office demand.
• April 2025: The Saudi government introduced a 5% Real Estate Transaction Tax, adding financing considerations for developers while reinforcing the push toward quality Grade A developments with sustainable features.
• September 2025: EY completed its 11,691-square-meter MENA headquarters facility in King Abdullah Financial District, joining other professional advisory firms in expanding operations and securing long-term lease commitments.
• November 2024: ROSHN Group underwent rebranding and portfolio expansion, adding 4 million square meters of commercial, office, and hospitality spaces to support Saudi Arabia's economic diversification and mixed-use development trends.

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