2023-11-22-莱坊-Saudi_Arabia_Commercial_Market_Review_H1_2023_4页_3mb

Saudi Arabia Commercial Market Overview Summary (H1 2023)

Office Market

• Office sector outperforms all major cities, with Riyadh emerging as the central hub due to economic transformation initiatives like "Program HQ".
• Grade A office lease rates in Riyadh increased by 6.2% year-on-year, and occupancy reached 97%.
• Demand is driven by both private and public sectors, including international companies moving regional headquarters there, contributing to economic growth.

Retail Market

• Retail sector expected to grow to SAR 596bn by 2024, becoming the largest market in the region.
• Trends include rising demand for e-commerce and luxury retail, with rentals varying by city—up in Riyadh, down in Jeddah.
• Key drivers include digital shifts post-pandemic, requiring retailers to adapt for competitiveness.

Hospitality Market

• Hotel demand remains strong, fueled by tourism growth aimed at 150 million visits by 2030.
• Key performance indicators show positive year-on-year changes in ADR and RevPAR.
• Large development pipeline with over 289,000 new rooms projected by 2030, supporting events and festivals.

Key Highlights

• Economic transformation under Vision 2030 is boosting all sectors.
• Permanent digital shopping habits are reshaping retail landscapes and influencing market dynamics.
• Opportunities and challenges exist in meeting evolving consumer demands and supply shortages in prime locations.