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Saudi Arabia Real Estate Market Review Q4 2025
Accelerating Execution: Strategic Spending and Private Capital Fueling the Next Growth Phase
February 2, 2026 10 Minute Read
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Key Takeaways:
The Office sector in Riyadh remains under significant pressure with occupancy at 99% for Grade A offices, driving a shift toward leasing space in advance as occupiers compete for the 0.5 million sqm of new supply arriving in 2026.
The Residential market is moving toward a period of stability with approximately 70,000 units expected in Riyadh over the next two years, while the new foreign ownership law aims to secure global talent through localised property rights.
The Retail sector is seeing traditional shopping centres replaced by large scale destination hubs, with developers prioritising walkable layouts and digital integration to capture the 21% growth in online transactions.
The Hospitality sector is focusing development on luxury and heritage projects with global branding, supported by major anchor sites like Six Flags Qiddiya City which is now serving as a primary demand driver for the southwest corridor.
The Industrial sector is evolving into a technology driven industry with a focus on smart infrastructure and data center capacity, resulting in sustained rental growth for high specification warehousing in Riyadh and Jeddah cities.
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