New Office Space Projects in Riyadh, Tatweer Tower Rentable Area

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Riyadh Office Real Estate Market By Major
Projects (Elegance Tower, Al Saedan Towers,
Tijan Plaza, Hamad Tower, Tatweer Tower) -
Outlook To 2021 Ken Research
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Riyadh Office Real Estate Market by Major
Projects (Elegance Tower, Al Saedan Towers, Tijan
Plaza, Hamad Tower, Tatweer Tower) - Outlook to
2021" provides a comprehensive analysis of Riyadh
office real estate market. The report focuses on
the overall market size by supply and demand,
supply and demand gap analysis, market
segmentation by major areas, average rental rates
and future outlook by demand and supply. The
report also covers a snapshot on Saudi Arabia
office real estate market and key factors
influencing the Saudi Arabia office real estate
market. The report concludes with analyst
recommendation for various participants in the
industry and case study of major office complexes
in the city.
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Saudi Arabia Office Real Estate
Market Governments aim to diversify the economy
has attracted the development of manufacturing
and services sector to open their businesses in
Saudi Arabia creating a substantial demand for
office spaces in the country. Programs such as
Vision 2030 were launched in April 2016 and
National Transformation Program (NTP) was
launched in June 2016 with an aim to develop
different sectors of the economy and country is
expected to give positive boost to the economy.
Riyadh will continue to lead the office real
estate market in Saudi Arabia followed by
Jeddah. Factors Influencing the Sector of Office
Space Demand in Saudi Arabia Declining
contribution of oil and gas sector mainly due to
fall in oil prices has forced the government to
look for other alternatives that can help in
sustaining the economy. During 2012 to 2016 the
share of GDP contribution from mining of crude
petroleum and natural gas declined from in
2012 to in 2016 mainly due to fall in prices
in the global market.
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Riyadh Office Real Estate market The number of
people employed in services sector increased from
million in 2012 to million in 2016
registering a constant increase in number of
people in services sector thus creating
additional demand for office space. There has
been constant rise in the number of industrial
units operating in Saudi Arabia increasing from
units in 2012 to units in 2016. The total
office real estate supply in Riyadh increased
from million square meters during 2013 to
million square meters of gross leasing area
during 2016, registering a CAGR of during the
same period. Demand during the same period was
lower than the supply. Total occupied office
space increased from million square meters
during 2013 to approximately million square
meters during 2016, achieving a CAGR of during
the same period. Completion of Alajlan Tower (
Sq m) and Al Tamaiouz Tower ( Sqm), Olaya
towers, MIG tower made significant contribution
during the estimation period of 2013-2016.
Constant oversupply in the market has made the
rental stay stable.
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The rental rate charged by office real estate
developers in Riyadh varies across different
building categories as well as location. It is
evident that average rental rates across major
business streets such as King Fahad road and
Olaya Street are much higher because of better
location and infrastructure facilities. Within
these areas, the rent may vary depending on net
area under lease, whether the company is private
or government owned as well as type of company.
As reported at the end of March 2013 rental
rates were SAR for Grade B offices and SAR in
Grade A office buildings. Rental rate at the end
of 2016 was estimated at the average value of SAR
. Rentals were lowest in Ayesha bint Abu Bakkar
road and maximum on Northern ring road. Riyadh
Office real Estate Market Segmentation by
Location Central Business District was the key
offices real estate market in Riyadh accounting
for ( Sqm) of the net GLA available for
leasing and renting in 2016. Occupancy rate was
among the highest with an estimated of the
total supply being under lease. Most of the
office buildings are located in close proximity
to King Fahad Road and Olaya Road.
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The city core area supply of the GLA with the
average rentals in the city core which comprises
locations like King Saud Road, Salahuddin Ayoubi
Road range between SAR to SAR per square
meter. The northern part has emerged as the new
region for developing office spaces in the
Riyadh. In 2016, only of the office spaces in
Riyadh were located in this area however many new
upcoming projects including KAFD and ITCC are
located in this area. Others include the suburban
and small business areas which mostly cater to
the local demand of the city. These include
offices of local businesses and SMEs. Together
they account for of GLA supply in the
city Future Outlook to Office Demand and Supply
Market in Riyadh Supply of office real estate is
expected to increase from million square meters
in 2017 to million square meters in 2019 which
will further rise to million square meter in
2021. Completion of Riyadh metro will make north
a more attractive option for new and upcoming
offices. It is expected that completion of KAFD,
ITCC and Nakhla tower will add an estimated
million square meter. This will make the northern
part of Riyadh a key office destination replacing
CBD.
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Majority of the office space developed in this
area is of the A and B type. Governments plan to
cut down the staff by may have negative impact
on the Riyadh office space market, however plans
such as Vision 2030 and NTP 2020 is expected to
have positive impact on the demand for office
spaces in the city. Key Topics Covered in the
Report Saudi Arabia Office Real Estate
Market Factors Affecting Saudi Arabia Office Real
Estate Market Riyadh Office Real Estate Market By
Demand And Supply In Volume Riyadh Office Real
Estate Market By Supply And Demand Gap
Analysis Rental Rate Analysis In Riyadh Office
Real Estate Market Riyadh Office Real Estate
Market Segmentation By Region Future Outlook To
Riyadh Office Real Estate Supply And Demand Case
Study Of Major Office Projects
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report please refer to the below
link https//www.kenresearch.com/manufacturing-an
d-construction/real-estate/riyadh-office-real-esta
te-market/142284-97.html Contact Us Ken
Research Ankur Gupta, Head Marketing
Communications ankur_at_kenresearch.com 91-901537824
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