Logistics is one of the fastest-growing sectors in Saudi Arabia, and the question that matters to landowners and investors is simple: is demand for warehouses in Riyadh real, and how do we measure it?
No single number answers that. We need to read five signals together: occupancy, rents, supply, industrial activity, and government projects. This article brings together the latest published figures for each signal, with the source and date of every number.
The figures in this article come from published reports and official sources. They are meant to explain the market, not to recommend buying or selling.
1. Occupancy: ready warehouses are almost full
Occupancy is the clearest sign of demand. When it is close to 100%, tenants are looking for more space than the market can offer.
| Source | Period | Riyadh warehouse occupancy |
|---|---|---|
| Knight Frank | H1 2025 | 98% |
| JLL | Q2 2026 | Above 90% |
According to Knight Frank, occupancy in the same period was 97% in Jeddah and 96% in Dammam, so the shortage of space is shared by all three major cities, not only Riyadh.
2. Rents: a strong rise, then a slower pace
| Source | Period | Average rent in Riyadh | Annual change |
|---|---|---|---|
| JLL | Q2 2025 | — | +9.3% |
| Knight Frank | H1 2025 | SAR 208/m² a year | +16% |
| JLL | Q2 2026 | SAR 265/m² a year | +3.9% |
What it means: rents rose strongly in 2025 and kept rising, more slowly, in 2026. The highest rent JLL recorded in Q2 2026 was in Industrial Gate City, at SAR 300 per m² a year.
Note: each firm uses its own method and sample. Knight Frank's SAR 208 and JLL's SAR 265 should not be compared as if they were the same index. The right comparison is within each firm's own reports.
3. Supply
According to Knight Frank (H1 2025):
- Riyadh's warehouse stock is 28.9 million m², up 3.5% in a year.
- Industrial and manufacturing space in Riyadh is 16.2 million m².
- More than 1.3 million m² of new warehouse space was delivered across Saudi Arabia in six months.
- Taibah, in south Riyadh, is expected to grow by 50% over the next three years.
According to JLL, Taibah had the strongest rent growth among Riyadh's industrial submarkets in Q2 2025, at 25%.
What it means: supply is growing, but more slowly than demand, which is why occupancy stays high even as new space is added.
4. Industrial activity: the core driver of warehouse demand
New factories need storage for raw materials and finished goods. According to the Ministry of Industry and Mineral Resources, in April 2026 alone:
- 322 new industrial licenses were issued, with investments of more than SAR 12.33 billion.
- 188 factories started production, with investments of SAR 2.01 billion.
5. Government projects: long-term demand
- The National Transport and Logistics Strategy (2021) aims to raise the sector's contribution to GDP to 10%, lift port capacity to more than 40 million containers a year, and air cargo capacity to more than 4.5 million tonnes.
- In December 2024, the Ministry of Transport and Logistic Services announced contracts for 18 logistics zones with investments of more than SAR 10 billion. The target is 59 logistics zones by 2030, up from 22 operating at the time of the announcement.
6. Warehouse land in Riyadh: what the listings show
From land listings on licensed property platforms that we track on the price map, these are the neighborhoods with the most land listings that mention warehouses, workshops or industrial use:
| Neighborhood | Area | Listings | Median asking price (SAR/m²) |
|---|---|---|---|
| Al Mansuriyah | South Riyadh | 8 | 1,300 |
| As Sulay | East Riyadh | 7 | 2,500 |
| Al Ghannamiyah | South Riyadh | 6 | 1,550 |
| Taibah | South Riyadh | 5 | 1,500 |
| Al Manakh | South Riyadh | 4 | 1,600 |
Note: these are asking prices from a small sample, and actual sale prices may differ. Prices depend heavily on street width, permitted use and access to main roads.
Summary
Demand for warehouses in Riyadh shows up in more than one signal:
- Occupancy is above 90%.
- Rents rose strongly in 2025 and kept rising, more slowly, in 2026.
- Industrial activity continues, with hundreds of new industrial licenses every month.
- Government projects aim to expand the logistics sector through 2030.
New supply is concentrated in south Riyadh (Taibah, Al Mansuriyah, Al Ghannamiyah) and in the east (As Sulay).
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Sources
- Knight Frank: KSA Industrial & Logistics Review, Autumn 2025 (H1 2025 data)
- JLL: KSA Industrial Market Dynamics (Q2 2025)
- Annahar: JLL Q2 2026 report, warehouse occupancy above 90% (August 2026)
- SPA: Ministry of Industry issues 322 industrial licenses, 188 factories start production in April 2026
- Saudipedia: National Transport and Logistics Strategy
- Asharq Al-Awsat: 18 logistics zones with investments above SAR 10 billion (December 2024)