Riyadh, Eastern Province Industrial Property Booms

Industrial, logistics, and real estate activity in Riyadh and the Eastern Province continued to accelerate through 2025 and into 2026, with tight supply and strong non-oil demand pushing rents and land prices higher across key submarkets.

Grade A industrial and logistics space in Riyadh and the Dammam Metropolitan Area is holding occupancy above 90%, with high-spec warehousing seeing sustained rental growth driven by e-commerce, third-party logistics providers, and national diversification projects. Project data for June 2026 place Riyadh as the leading region for new activity, with 1,291 projects tracked, 95 new contract awards, and 305 active tenders. Real estate and commercial development accounted for 632 projects — nearly half of all activity — concentrated in residential, office, and hospitality schemes, particularly in northern districts and major commercial corridors.

Commercial land prices reflect the intensity of demand. General averages across many districts sit near SAR 1,427 with lower-value areas around SAR 675 100 Northern districts such as Al Malqa are recording averages close to SAR 3,019 Industrial plots listed in early to mid-2026 range from roughly SAR 416,000 to about SAR 5,550,000 depending on size, zoning, and location.

MODON continues to offer serviced industrial land in Riyadh First and Second Industrial Cities, with published per-square-meter schedules and one-time connection and annual service charges. In the Eastern Province, activity is scaling under the National Industrial Development and Logistics Program, which targets 59 logistics centers and 15 million m² of warehouse inventory nationally by 2030. A public-private partnership logistics zone of about 850,000 m² is under development in Dammam.

For residents and businesses, the trend signals more warehousing, faster deliveries, and expanding job opportunities — but also rising costs for commercial and industrial tenants as competition for prime space intensifies.

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