Oversupply (Supply – Demand Gap) of Office Space in Riyadh is Expected to be Around 10% by 2023: Ken Research

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Research Analysts at Ken Research in their latest publication “Riyadh Office Market Outlook to 2023 – Improving Oversupply Environment Driven by Rise in Demand for Premium Office Space and Upcoming Completion of Smart City and Office Projectsbelieve that introducing premium offices, offering value added benefits, easing out the lease agreement will contribute to an increase in the total area of office space in Riyadh and would help in decrease of the supply-demand gap.

Riyadh Office Market Research Report

The office market of Riyadh is influenced by a number of factors such as location, commercial activities around the location, ease in commutation and special amenities. The supply and demand disparity in the market has further fuelled the occupancy rates to remain stable throughout 2018.

Emergence of International Companies: 100% foreign ownership of companies or properties in various industries, Low minimum capital requirement, ability for foreign investors to sponsor foreign employees and Tax incentives if the company is registered in certain “economic cities” located in the less developed provinces of KSA have relaxed the norms for international companies that are willing to enter Saudi Arabia. Therefore, making it easier for MNC’s to carry out business in Saudi Arabia.

Location Preferences: Locations such as King Fahd Road, Eastern Ring Road and Olaya streets are found to have higher occupancy rates because of the premium real estate projects and higher commercial activities available around those areas. There are various options for recreational activities making it likeable for the employees. These regions are also well connected to all parts of the capital city.

Al Raidah Digital City (RDC, formally ITCC) continues to gain customers as a result of the restricted pipeline of Grade-A space with occupancy standing at 95% following strong interest from both public and private occupiers. However, the occupancy rate of ITCC will suffer after KAFD handovers remaining stocks in the upcoming years.

Eastern Riyadh is observed as the most attractive area for middle income population and it benefits from its connectivity to central Riyadh. This region of Riyadh can be utilized for office purposes as the sale prices are lower in the East of Riyadh along with potential absorption for new developments thus, indicating strong demand for this area.

North of Riyadh is evaluated with highest sale prices along highest absorption rates for office spaces including government and private firms owing to better infrastructure and the completion of a number of high profile projects for instance, KAFD, Rafal Tower, and PNU. This region also witnesses the co-working culture quite abundantly.

Western Riyadh is the neighbourhood for the city’s High Net worth Individuals’ (HNWIs), particularly in districts such as Khozama and Nakheel. Additionally, upcoming districts in the Western region include Laban, which comprises basically of a very few office infrastructural development catering to unorganized sector only. Low limited developer activities were observed in this region.

Key Segments Covered:

Type of Office Units

Premium

Grade A

Grade B

Others

Region

Northern Riyadh

Central Riyadh

Eastern Riyadh

Western Riyadh

Southern Riyadh

Key Target Aud.ience:

Real Estate Developers

Third Party Real Estate Companies

Independent Architects

Government Associations

Government Agencies

Independent Investors

Real Estate Consulting Companies

Time Period Captured in the Report:

Historical Period – 2013-2018

Forecast Period – 2019-2023

Office Project Case Studies Covered:

Home Office

The Elite Center

Motoon Commercial Towers

The Cube

Aknaz Center

Keywords:-

Riyadh Office Market

Riyadh Office Market Research

Riyadh Office Market Research Report

Riyadh Office Market Overview

Riyadh Office Market Trends

Riyadh Office Industry Research Report

Riyadh Office Market Sales

Riyadh Real Estate Market

Assessment of Office Market in Riyadh

Office Projects in Riyadh

Office Projects in Eastern Riyadh

Office Project Development in Riyadh

Current Status of Riyadh Office Market

Riyadh City Review

Factors Affecting Riyadh Office Market

For more information on the research report, refer to below link:

Riyadh Office Market Research Report

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Contact Us:-

Ken Research

Ankur Gupta, Head Marketing & Communications

sales@kenresearch.com

+91-9015378249

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