Commercial Real Estate in Riyadh: 2026 Guide to Districts, Leasing and Buying

The Riyadh commercial market at a glance

Riyadh is the largest commercial real estate market in Saudi Arabia. It is the capital, the base for companies' regional headquarters in the Kingdom, and the focus of the largest Vision 2030 projects, which keeps demand for office, retail and logistics space high.

For most investors and occupiers, three things shape a decision in Riyadh today: which district the property is in, the leasing rules introduced in 2025, and the taxes and ownership rules that apply to a purchase. Each is covered below.

Main commercial districts

Commercial activity in Riyadh is spread across several established and emerging areas:

KAFD (King Abdullah Financial District): the financial district in the north, with Grade-A office towers occupied by banks, financial firms and regional headquarters.
Olaya and King Fahd Road: the established business district along King Fahd Road, with offices, hotels and retail.
Diplomatic Quarter: embassies, international organisations and offices in a planned, low-density setting.
North Riyadh (Al Malqa, Hittin, An Narjis, Al Yasmin, Al Aqiq): newer districts with mixed-use, retail and office development along the main northern roads.
East Riyadh (Al Hamra, Al Rawdah, Al Khaleej): established and growing districts with retail and neighbourhood commercial property.
Central Riyadh (Al Malaz, Al Dirah): older commercial areas with retail strips and buildings that often suit repositioning.

Prices differ widely between these districts. The Market Index shows average commercial prices per square metre by district, based on Ministry of Justice transaction data.

See average commercial prices by district on the Market Index

Types of commercial property

Office: from Grade-A towers in KAFD and Olaya to smaller buildings in established districts.
Retail: high-street units, malls, showrooms and food and beverage frontage on main roads.
Industrial and logistics: warehouses, light industrial units and last-mile distribution facilities.
Mixed use: developments that combine offices, retail and hospitality.
Land: development plots and strategic parcels for medium-term investment.

Our buy, sell and lease services

Leasing commercial property in Riyadh

Since 25 September 2025, rents for residential and commercial properties in Riyadh's urban area have been frozen for five years. Rent cannot be increased during that period, except under escalation clauses already agreed in leases signed before 25 September 2025; escalation clauses in leases signed on or after that date cannot be applied while the freeze lasts.

Leases now renew automatically unless either party gives notice of non-renewal at least 60 days before expiry. In Riyadh, a landlord can refuse renewal only in limited cases, such as rent default or a structural safety defect confirmed by a competent authority.

Leases must be registered on the Ejar platform. The landlord is responsible for registration, and either party can object to the registered details within 60 days. Violations can be fined up to 12 months' rent.

Buying commercial property: tax and checks

A 5% Real Estate Transaction Tax (RETT) applies to property transfers in Saudi Arabia, including commercial sales. Transfers are declared and registered through ZATCA's RETT platform before the deed is transferred. Some transfers are exempt, such as inheritance divisions and transfers between close relatives.

Before buying, check the title deed and any encumbrances, confirm that permitted use and zoning match your plans, review existing leases and their Ejar registration, and assess income against the rent freeze, since current rents may not rise until the freeze ends.

Can foreigners buy commercial property in Riyadh?

Yes, under conditions. The Law of Real Estate Ownership by Non-Saudis entered into force on 22 January 2026. It covers non-Saudi individuals, companies and other entities, and applications are made through REGA's Saudi Properties portal.

Ownership by non-Saudis is allowed in designated zones, including in Riyadh, which the Council of Ministers endorsed in June 2026; the map is published on the Saudi Real Estate Portal. Non-listed Saudi companies with foreign shareholders may also own property outside the zones for business use or staff housing, with prior approval from the Ministry of Investment (MISA).

Foreign companies without a presence in Saudi Arabia must first register with MISA, open a local bank account and disclose their owners. A REGA fee applies on disposals, currently 2% in Riyadh. Rules are still being refined, so confirm the current position before committing.

How NOA can help

NOA advises investors and companies on buying, selling and leasing commercial property in Riyadh. We source properties, including off-market, review leases and deal terms against current rules, and base our recommendations on Ministry of Justice transaction data.

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Frequently asked questions

Are commercial rents frozen in Riyadh?

Yes. From 25 September 2025, rents for residential and commercial properties in Riyadh's urban area are frozen for five years. Escalation clauses agreed in leases signed before that date still apply.

Can a foreign company buy commercial property in Riyadh?

Yes, under the Law of Real Estate Ownership by Non-Saudis in force since 22 January 2026. Foreign companies register with MISA first and can own in designated zones; Saudi companies with foreign shareholders can also own outside the zones for business use with MISA approval.

What tax applies when buying commercial property in Saudi Arabia?

A 5% Real Estate Transaction Tax (RETT) applies to property transfers, declared through ZATCA's RETT platform before the deed is transferred.

Where are the main office districts in Riyadh?

KAFD, Olaya and King Fahd Road, and the Diplomatic Quarter are the main office districts, with newer office and mixed-use development in North Riyadh.

Commercial real estate in Riyadh