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 Projects” believe 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.
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
Key Target Aud.ience:
Real Estate Developers
Third Party Real Estate Companies
Real Estate Consulting Companies
Time Period Captured in the Report:
Historical Period – 2013-2018
Forecast Period – 2019-2023
Office Project Case Studies Covered:
The Elite Center
Motoon Commercial Towers
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:
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Ankur Gupta, Head Marketing & Communications