Market Report
Jul 15, 2025

Riyadh Office Market — H1 2025

NOA Research Team

Riyadh Office Market — H1 2025

Grade-A office demand along Riyadh's prime corridors continues its upward trajectory in H1 2025, with vacancy rates compressing to 8.3% in KAFD and 11.2% in Al Olaya — their lowest levels since those districts were launched.

Grade A office demand across Riyadh's prime corridors continued its upward trajectory in H1 2025, with vacancy compressing to 8.3% in KAFD and 11.2% in Olaya — the tightest readings since the district's inception. Absorption was driven primarily by financial services firms, government-linked entities, and regional headquarters of multinational companies responding to the Riyadh Regional Headquarters Program. Supply additions along King Fahd Road were absorbed within two quarters of delivery, a pace that has surprised even optimistic forecasters. NOA's research team projects continued tightening through 2026 as no significant Grade A pipeline is expected to complete before Q3 2026. Tenants facing lease expiries in the next 18 months should treat renewals as a strategic priority.

Office Vacancy Heatmap

Vacancy rates across Riyadh's prime office districts (H1 2025)

KAFD

Very Low

8.3%

Olaya

Low

11.2%

King Fahd Road

Low

12.5%

Al Sulimaniyah

Medium

15.8%

Al Malqa

Medium

18.2%

Hittin

High

22.4%

Very High
High
Medium
Low
Very Low
Tags
officeriyadhvacancygrade-a

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