Grade A office lease rates rise 2.9% in Riyadh over 12 months: Knight Frank

Riyadh city

Grade A office lease rates in Riyadh rose 2.9% in the 12 months to the end of Q3 2021, according to a recent report by Knight Frank.

“Inadvertently, businesses from elsewhere in the Kingdom are also opting to relocate to the capital, which is undermining office markets elsewhere in the country," the report issuer said. 

Furthermore, the persistent flight to quality means Grade A and Grade B rents drifting further apart, highlighted by the fact Grade B office rents across Saudi Arabia fell by 1-3% over the last 12 months.

Knight Frank expects that demand for Grade A office space in Riyadh would grow further, as a result of the Saudi government's decision to stop contracting any foreign company that has a headquarters in the region, other than in Saudi Arabia, starting from 2024.