Market review of Saudi Arabia's real estate market covering the office, hospitality and residential sectors. 

  • Saudi Arabia’s GDP is estimated to have grown by 2.9% in 2021 and is forecast to grow by 6.2% in 2022
  • Visitation to workplaces in Saudi Arabia has since late September 2021 remained above pre-pandemic levels according to Google’s mobility data. The latest data shows that visitation now sits 19.7% above the baseline.
  • Occupier activity in Saudi Arabia’s office market continues to be very much skewed towards Riyadh, where the availability of quality supply is significantly outweighed by demand.
  • In Riyadh, occupancy levels for Grade A office space reached 98.0% and 96.9% for Grade B stock in Q1 2022. In Jeddah and the Eastern Province, occupier activity has remained limited in the first quarter of 2022.
  • Average rents in Riyadh’s Grade A segment increased by 8.6% and Grade B rents by 6.0% in Q1 2022.
  • In Jeddah, despite the lack of activity and due to limited availability in the Grade A segment, Grade A rents increased by 10.8% in the year to Q1 2022.
  • Grade A rents in Dammam and Khobar increased by 4.0% and 2.6% in the 12 months to Q1 2022,, where Grade A rents in both locations are now above pre-pandemic levels.
  • Residential transaction volumes in Saudi Arabia fell by 23.4% in Q1 2022, compared to a year earlier, where the total value of transactions also fell marginally by 1.9%.
  • Riyadh, in the year to Q1 2022, saw the total number of residential transactions fall by 21.6% compared to a year earlier.
  • Jeddah, on the other hand, saw transaction volumes increase by 5.4% in the 12 months to Q1 2022.
  • Average apartment prices in Saudi Arabia have increased by 9.6% in the year to Q1 2022.
  • Year-on-year in the year to date to March 2022, the average occupancy rate in Saudi Arabia increased by 23.4 percentage points.
  • Over the same period, despite the ADR falling marginally by 0.3%, RevPAR, on average, increased by 66.2%.