Saudi Press

Saudi Arabia and the world
Saturday, Jun 21, 2025

Saudi Arabia drives growth across MEA commercial property markets  

Saudi Arabia drives growth across MEA commercial property markets  

Saudi Arabia’s commercial real estate sector is witnessing an upturn as the Kingdom’s plan to diversify its economy continues to drive demand within the overall property market, according to a new report from the Royal Institution of Chartered Surveyors.
This comes as solid market conditions in the Middle East and Africa region continue to defy the broader global macro narrative, according to the firm’s Global Commercial Property Monitor.

The RICS report said that occupier and investor demand is reportedly rising across all sectors, with expectations for rental and capital value growth remain firmly positive, led by particularly upbeat feedback in Saudi Arabia, the UAE and Nigeria.

The report found that 81 percent of respondents based in Saudi Arabia believe that the market is in an upturn as the Kingdom is currently experiencing a boom within the real estate sector driven by infrastructure, housing and entertainment.

According to the report, the overall commercial property occupier demand growth was a touch down to 43 percent from the 60 percent posted in the third quarter. But it added that this figure matched the 43 percent posted in the fourth quarter of 2021, demonstrating a stable rate of strong growth over the past year.

“Like much of the MEA region, the firm trend is visible in all parts of the market in Saudi Arabia where the results for the office sector remain more positive than for the retail and industrial sectors,” said the RICS report.

Saudi Arabia’s office sector reported a reading of 59 percent, down a touch from the 64 percent reported in the third quarter, the report said. It added that retail and industrial still posted strong growth readings with 32 percent and 38 percent, respectively.

The RICS report showed that international investment demand has gathered impetus in each of the last three quarters, with all sectors seeing an uptick during this stretch. Leading the way, it said Saudi Arabia attracted strong growth in foreign buyer interest over the fourth quarter, posting a net balance of 49 percent.

Overall, the findings of the report pointed out that the Saudi Arabian commercial property market, much like its neighbor the UAE, has firm foundations for future growth, even if it becomes caught in the tailwinds of the global economic downturn.

The report further added that the UAE’s commercial property market also remains strong despite global challenges as around two-thirds of respondents feel the market is on the rise. It added that tenant demand growth in the UAE accelerated within all sectors of the market during the fourth quarter of 2022.

The outlook for the UAE’s commercial real estate market remains positive as 12-month capital value expectations continue to rise, said the RICS report, adding that foreign investment demonstrates growing confidence in the market with further growth.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Black Box Recovered from Air India Crash Site
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Syria to Reconnect to Global Economy After 14 Years of Isolation
Israel Confirms Arming Gaza Clan to Counter Hamas Influence
Global News Roundup: From Ukraine's strategic military strikes and Russia's demands and Tensions Escalate in Ukraine, to serious legal issues faced by Britons in Bali and Trump's media criticism, the latest developments highlight a turbulent landscape
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
Iran Warns Europe Against Politicizing UN Nuclear Report
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
×