Knight Frank – Saudi Arabia Commercial Market Overview, Autumn 2024

Knight Frank's "Saudi Arabia Commercial Market Overview, Autumn 2024" provides a comprehensive analysis of the Kingdom's commercial real estate sector, highlighting significant growth and transformation. The report notes a strengthening of non-oil private sector business conditions in Q3 2024, with the non-oil PMI rising to 56.3 in September, driven by increased output and new orders. The "Program HQ" initiative has led to 517 companies committing to establishing regional headquarters in Riyadh, surpassing the 2030 target of 480. This surge in demand has resulted in a 31% year-over-year increase in prime office rents in Riyadh, with vacancy rates for Grade A space remaining low at 3%. The hospitality sector also saw remarkable growth, with the Kingdom hosting 1.83 million pilgrims during the Hajj 2024 season and surpassing its 2030 target by attracting over 100 million visitors last year. Additionally, the data center sector is expanding robustly, supported by Vision 2030 initiatives aimed at diversifying the economy and enhancing digital infrastructure. The report underscores the pressing need for further expansion of the city's commercial real estate market to accommodate the growing population and business activities.