Investor confidence in Riyadh’s commercial real estate sector has been intensifying, with a range of market indicators showing significant improvement since the beginning of the year.
In March 2025, a massive $27 billion construction program was unveiled, boasting 100 high-rise commercial towers. The newly launched commercial towers are not only fundamentally reshaping Riyadh’s real estate landscape but also shaping up to become an attractive investment opportunity for global players across various sectors.
100 New Commercial Towers in Saudi Arabia: Capturing Full Value of Mixed-Use Development
The 100 commercial towers represent the latest evolution of Riyadh’s commercial real estate. By 2026, they are expected to add approximately 1 million square meters of office space, combining office, retail, hospitality, and residential components in a well-designed single development.
On a broader scale, these all-encompassing large-scale projects reflect the rising trend of mixed-use developments, driven by rapid urbanization, increasing activity of business expansions, and growing infrastructure demands.
In fact, the construction, operation, and management of these towers are unlocking employment opportunities in various sectors, from construction and real estate to retail, hospitality, and corporate offices.
Local service providers will particularly benefit from strong physical consumer foot traffic. The integration of spaces optimizes supply chains and ultimately drives an overall economic value.
Moreover, mixed-use projects encourage infrastructure upgrades in their vicinity, driving the need for more transport links, road networks, and electricity systems, reinforcing their long-term economic impact.
Eventually, Riyadh’s 100 new towers will add to the city’s status as a leading business tourism and global Meetings, Incentives, Conferences, and Exhibitions (MICE) hotspot.
Looking ahead, Riyadh is projected to be among the 15 fastest-growing cities worldwide by 2033, outperforming global metropolitan centers like Beijing, Houston, London, Munich, Paris, San Francisco, and Tokyo.
The influx of new commercial hubs not only serves as a crucial driver of urban evolution but also provides a sustainable economic growth model.
A Snapshot of Saudi Arabia’s Commercial Real Estate Sector
Riyadh’s commercial real estate sector has been on an upswing owing to the city’s long-term prospects as a global business hub.
As commercial registrations in Saudi Arabia rise, the following are the major trends influencing the growth of Riyadh’s commercial real estate sectors, particularly office and retail spaces:
High Absorption of Grade A Office Spaces
Grade A office buildings are outperforming, increasingly becoming a highly sought-after choice for both established corporations and new startups. In Q1 2025, Grade A offices hit 98% occupancy rates.
The increase in the number of occupiers has pushed up Grade A office annual rents, reaching approximately SR 2,700 ($720) per square meter by Q1 2025. A strong leasing demand from high-profile tenants and limited availability make Grade A properties a target for global investors.
The bullish market momentum is driven by global business relocations; according to AstroLabs’ 2025 Market Entry Report, 64% of businesses surveyed were actively exploring market expansion into Saudi Arabia within 1-3 months in 2024, compared to 48% in 2023.
Entertainment F&B Industries Fuel Demand for Retail Supply
Another key trend in the broader Saudi commercial real estate sector is the increasing demand for retail spaces and industrial facilities as a result of the continued expansion of the entertainment and F&B industries.
As it continues to be the host for more than 660 regional headquarters (RHQs), Riyadh has seen an uptick in retail activity as global businesses keep expanding into the capital city. Therefore, Riyadh now captures the largest share of the 4.9 million sq. meters of retail developments planned across the Kingdom’s five largest cities by 2030.
In that sense, to accommodate increasing demand, retail space in Riyadh is projected to expand to 540,000 sq. meters of retail by 2025, bringing the total to 4.6 million sq. meters in 2026.
Flagship destinations such as Riyadh Park and Al Nakheel Mall have continued to attract strong foot traffic, high tenant demand, and robust rent as consumers increasingly seek integrated hospitality and entertainment experiences.