Riyadh Property Demand Surges as HQs Expand

Demand for commercial and residential property in Riyadh is climbing sharply as multinational companies expand their regional headquarters operations in the Saudi capital. By mid-2026, more than 780 multinational firms had been licensed under the Regional Headquarters Program, with the majority choosing Riyadh as their base.

The influx has pushed prime office space to near-full utilization. Grade A office occupancy reached between 97% and 98.5% during 2025–2026, while vacancy sat at around 2–2.8% in late 2025 — among the tightest rates anywhere in the world. Grade A rents rose about 15% year-on-year in the third quarter of 2025 and have climbed roughly 84% since early 2020. Grade B space also felt the pressure, with rents up around 24% year-on-year in 2025.

To keep pace, Riyadh's office stock reached about 6.3 million square metres by mid-2025 and is planned to expand to roughly 9.8 million square metres by 2027. Much of the demand is concentrated in the city's commercial districts and مركز الملك عبدالله المالي.

The Regional Headquarters Program, which requires foreign firms seeking Saudi government contracts to base their regional headquarters in the Kingdom, offers incentives including corporate income tax exemptions of up to 30 years and withholding tax relief. In 2025 alone, 162 new licenses were issued, and the program is linked to office demand of around 1.36 million square metres. Riyadh accounted for roughly 49% of the country's commercial real estate turnover last year.

The pressure extends to housing. Riyadh's residential market saw notable price growth and development activity in 2024–2025, driven by رؤية السعودية 2030 projects, headquarters relocations, population growth, and a structural shortage of quality homes. For residents and expats, the trends point to a competitive market for both offices and homes as the capital consolidates its role as the region's business hub.

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