Saudi Arabia remains one of the strongest commercial property markets in the world, according to the Royal Institution of Chartered Surveyors (RICS) Global Construction Monitor Q3 2024.
Overall occupier demand reported a very strong reading (+56 per cent net aggregate), and this growth is found among every commercial property sector, with office property recording an exceptionally strong +76 per cent result.
There is exceptionally strong international investor demand growth, particularly for office property, which posted a +88 per cent reading – a record since the monitor was established in Q4 2018.
Saudi commercial property
While the Middle East is experiencing geopolitical uncertainty, the current situation appears to not be impacting the Kingdom’s commercial property sector.
Looking to the future, both rent and capital value expectations across each commercial property type remain firmly positive at both the three-month and twelve-month timeframes.
Ultimately, Saudi Arabia remains a world-leading destination for commercial property investment and demonstrates a deeply robust market in the face of geopolitical instability in the region.
Only its neighbour, the UAE, indicates similar levels of exceptionally positive market sentiment.
RICS Senior Public Affairs Officer, Abdullah Akaish, said: “Saudi Arabia’s commercial property market is attracting unprecedented investor interest, with Q3 2024 data indicating a six-year high in office sector demand (+76 per cent) and a record-breaking +88 per cent in international investment sentiment.
“The Kingdom’s robust performance across sectors, particularly in offices, retail, and industrial, underscores Saudi Arabia’s reputation as a world leader in commercial real estate, buoyed by Vision 2030’s ambitious development goals.
“To capitalise on this momentum, policy makers should consider introducing incentives for green building initiatives, particularly in high-demand office spaces. This would align Saudi Arabia’s real estate growth with global sustainability trends and enhance long-term investment appeal.
“Expanding urban planning flexibility, streamlining permitting processes, and offering tax incentives for sustainable and mixed-use developments would ensure continued sector growth while meeting investor demand for modern, eco-conscious spaces.
“With strong rental and capital growth expectations ahead, Saudi Arabia’s commercial property sector is uniquely positioned to drive innovation and resilience, maintaining its appeal amid regional volatility.”
Follow us on
