Office rents around the country are decreasing, but that hasn’t stopped builders from building new office spaces. The oversupply is one of the main causes of decreasing rentals.
Arabian Business quoted a report by KPMG Al Fozan & Partners that stated that the trend will continue downwards pushing office lease rates in Jeddah and Riyadh.
Jeddah is expected to add 100,000 sqm and Riyadh will add 190,000 sqm of office space in the coming few months.
This adds to the existing office space in the two cities that are already oversupplied.