What is the average Class A rent in Riyadh?

Around 2200 SAR/sqft/yr ($587 USD) across the broader Class A index. Trophy submarkets like KAFD (King Abdullah Financial District) command 20–40% above that.

How many months of rent-free are normal in Riyadh?

4 months on a 5-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.

Are rents rising or falling in Riyadh?

The Riyadh Class A market is currently rising. Vacancy is 4.6%, which sets the negotiating context.

Headline Class A rent in Riyadh is around 2200 SAR/sqft/yr ($587 USD), with 4 months of typical rent-free on a 5-year term.

Headline Class A rent: 2200 SAR/sqft/yr ($587 USD).
Trophy submarket rents (KAFD (King Abdullah Financial District)) push to roughly SAR 2,400/sqm/yr · ≈ $59.5 PSF/yr USD.
Typical concessions on a 5-year deal: 4 months free rent.
Vacancy stands at 4.6% — market trend is rising.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Riyadh Class A office rents and incentives

Headline Class A rent in Riyadh is around 2200 SAR/sqft/yr ($587 USD), with 4 months of typical rent-free on a 5-year term.

TL;DR

Headline Class A rent: 2200 SAR/sqft/yr ($587 USD).
Trophy submarket rents (KAFD (King Abdullah Financial District)) push to roughly SAR 2,400/sqm/yr · ≈ $59.5 PSF/yr USD.
Typical concessions on a 5-year deal: 4 months free rent.
Vacancy stands at 4.6% — market trend is rising.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Headline rent vs. effective rent

Asking rents in Riyadh are quoted in SAR per sqft per year. Across the broad Class A index the figure is 2200, but the trophy tier in KAFD (King Abdullah Financial District) reaches roughly SAR 2,400/sqm/yr · ≈ $59.5 PSF/yr USD. Always discount headline rent by the present value of free rent and fit-out-capex">tenant improvement allowance to land on effective rent — the only number that compares cleanly across deals.

Rent-free and TI

Standard Riyadh concessions on a 5-year Class A lease run to 4 months of base-rent abatement. Trophy lease-ups can push rent-free 25–40% above that benchmark. Local cost-of-occupancy is also shaped by tax — 20% Saudi corporate income tax for non-Saudi/GCC owned entities. Zakat 2.5% on net assets for Saudi/GCC owners. RHQ program offers 30-year tax holiday for qualifying multinational HQs.

Where rents land by submarket

KAFD (King Abdullah Financial District) sits at the top end (~SAR 2,400/sqm/yr · ≈ $59.5 PSF/yr USD). Diplomatic Quarter clears around SAR 1,800/sqm/yr · ≈ $44.6 PSF/yr USD as the prime tier. Airport Corridor (KKIA) represents the value end at ~SAR 1,400/sqm/yr · ≈ $34.7 PSF/yr USD. The full submarket map is on the Riyadh city page.

Key facts

city	Riyadh
country	Saudi Arabia
region	EMEA
classARentLocal	2200 SAR/sqft/yr
classARentUsd	$587/sqft/yr
vacancy	4.6%
typicalLeaseYears	5
typicalRentFreeMonths	4
submarkets	5
primeYieldPct	6.8%
trophyRent	SAR 2,400/sqm/yr · ≈ $59.5 PSF/yr USD
primeRent	SAR 1,800/sqm/yr · ≈ $44.6 PSF/yr USD

Frequently asked questions

What is the average Class A rent in Riyadh?: Around 2200 SAR/sqft/yr ($587 USD) across the broader Class A index. Trophy submarkets like KAFD (King Abdullah Financial District) command 20–40% above that.
How many months of rent-free are normal in Riyadh?: 4 months on a 5-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.
Are rents rising or falling in Riyadh?: The Riyadh Class A market is currently rising. Vacancy is 4.6%, which sets the negotiating context.

Editorial provenance

Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.

Primary sources for this page

CBRE Marketview reports — CBRE
JLL Office Insight — JLL
Cushman & Wakefield Marketbeat — Cushman & Wakefield
Savills World Research — Savills
Colliers Global Office Outlook — Colliers

Full sources index · Submit a correction