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
