Riyadh Office Market is Expected to Showcase Growth Backed by Multiple Reforms and Pick up in Demand: Ken Research

Trends such as the co-working culture and smart offices will form the compelling future of Riyadh office market. The tenants will put ample stress over energy-efficient and sustainable form of offices.

• The increase in the number of establishments has also indicated towards more demand for office space.
• Projects such as Riyadh Metro Network reaching its completion will make a way for opportunities arising from Transit-oriented developments. The transit oriented development will add potential in the undeveloped regions of capital city to grow into a business district.
• High outflow of foreign nationals (expats) could create a negative impact on the city’s office market, especially over Riyadh in the near future as the capital city leads in terms of Non-Saudi population.
Riyadh Office Market is further expected to showcase high growth on account of increasing number of establishments, rising working population, and favorable government policies. The formation and operation of entities is regulated by the Companies Law which was issued under a Royal Decree in 1965, as amended in 1967, 1982 and 1985 by subsequent Royal Decrees. SAGIA offers a number of incentives to attract investors. The number of establishments has increased from 91,145 in 2013 to 127,038 in 2017, with an increase of 9% during the period 2013-2017.
Growing Demand for Premium and Grade-A Offices: The demand for premium and Grade A offices will increase in accordance to the needs of the tenants. The tenants will pay more emphasis towards the layout of the offices and the incentives being offered. The need for more parking spaces, the connectivity of office with other regions of Riyadh, modes of commutation available, commercial activity around the area will classify to be the most important determining factor for the location of office in the upcoming future
Key upcoming office projects such as King Abdullah Financial District (KAFD), ITCC, NEOM Project, Al Majdoul Office Tower, King Saud University Endowment Program, Cayan Mefic Center and others are also predicted to cater to the upcoming demand for offices in Riyadh. In addition to that, economic diversification away from the oil and gas sector under KSA Vision 2030 is further expected to result in growth of all economic sectors, which could aid in generating more office demand over the long term.
The women of Saudi Arabia have played very restrictive public roles in the past. With Vision 2030, little attention was paid to the women population of Saudi Arabia. Considering the high level of unemployment among Saudi women, the Government is committed to increasing the employment rate among women in the upcoming years. The initiative undertaken by the Government has an objective to increase the women employment rate from 22% to 30% by the end of 2030.
Over the past few decades, Riyadh has catered to an influx of expats who generally find accommodation for residential compounds, apartments and high-end furnished villas. Implementation of Saudization policy will restrict the influx of foreign expatriates, as majority of them have their accommodation costs paid directly by their employer thus, creating a negative impact on the Riyadh residential market.

Research Analysts at Ken Research in their latest publication “Riyadh Office Market Outlook to 2023 - Improving Oversupply Environment Driven by Rise in Demand for Premium Office Space and Upcoming Completion of Smart City and Office Projects” believe that introducing premium offices, offering value added benefits, easing out the lease agreement will contribute to an increase in the total area of office space in Riyadh and would help in decrease of the supply-demand gap.

For more information on the research report, refer to below link:
https://www.kenresearch.com/manufacturing-and-construction/real-estate/riyadh-office-market-outlook/227541-97.html

Key Segments Covered:
Type of Office Units
• Premium
• Grade A
• Grade B
• Others

Region
• Northern Riyadh
• Central Riyadh
• Eastern Riyadh
• Western Riyadh
• Southern Riyadh

Key Target Audience:
• Real Estate Developers
• Third Party Real Estate Companies
• Independent Architects
• Government Associations
• Government Agencies
• Independent Investors
• Real Estate Consulting Companies

Time Period Captured in the Report:
• Historical Period – 2013-2018
• Forecast Period – 2019-2023

Office Project Case Studies Covered:
• Home Office
• The Elite Center
• Motoon Commercial Towers
• The Cube
• Aknaz Center

Key Topics Covered in the Report
• Executive Summary
• Research Methodology
• Riyadh City Review
• Factors Influencing Riyadh Residential Market
• Supply and Demand Assessment in Riyadh by Segment (Premium, Grade A and Grade B), 2013-2023E
• Market Insight and Performance
• Average Rental Rate of Offices in Riyadh
• Average Occupancy rates of Offices
• Riyadh Office Market Future Outlook, Opportunities And Development Trends
• Recommendations For Riyadh Office Market
• Riyadh Office Market Future Outlook (Is Investment Profitable Or Not?)
• Key Features and Characteristics of Offices in Riyadh
• Key Expected Upcoming Office Projects In Riyadh City
• Case Studies Of Major Office Complexes In Riyadh
• Cross Comparison Within Major Office Properties In Riyadh
• Heat Map Analysis For Riyadh Office Complexes

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