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Riyadh Office Real Estate Market By Major Projects (Elegance Tower, Al Saedan Towers, Tijan Plaza, H

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.

India, 6 December 2017 -- 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.

Saudi Arabia Office Real Estate Market
Government’s 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. 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.
Riyadh Office Real Estate market
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.
Average Rental Rates in Riyadh Office Real Estate Market
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. 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 SME’s. 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. 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
For more information on the market research report please refer to the below link:
https://www.kenresearch.com/manufacturing-and-construction/real-estate/riyadh-office-real-estate-market/142284-97.html

# # #


Media Contacts:
Ken Research
Ankur Gupta, Head Marketing & Communications

+91-9015378249
http://www.kenresearch.com

Submitted by kenresearch11, Ken Research Pvt. Ltd. on Wednesday, 6 December 2017 at 2:28 PM
Category: Architecture & Construction
 
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