Saudi Arabia Flexible Office Space Market Size

Saudi Arabia Flexible Office Space Market Analysis

The Saudi Arabia Flexible Office Space Market size is estimated at USD 619.29 million in 2024, and is expected to reach USD 912.14 million by 2029, growing at a CAGR of 8.05% during the forecast period (2024-2029).

• The pandemic resulted in the closure of several offices, which impacted the growth in 2020. Companies resuming operations and adapting to the new normal while recovering from the COVID-19 impact, which had previously resulted in restrictive containment measures such as social distancing, remote working, and the closure of commercial activities, resulting in operational challenges, are driving growth in the flexible office space market.
• The flexible office space industry is likely to grow in the coming years, and its entry into Saudi Arabia's market might have significant implications for the country as a rising number of newer firms and well-established corporations opt to employ serviced workspaces.
• With Saudi Arabia's burgeoning business sector, there has been a surge in demand for coworking spaces. These coworking spaces have also received backing from the Saudi government. SoftBank's Vision Fund, which owns a majority position in one of the most well-known coworking companies, WeWork, has received a USD 45 billion investment from the country's Public Investment Fund.
• More than half of the population in Saudi Arabia is under the age of 40, which is exactly the demographic that requires flexible office space. However, due to a scarcity of flexible office space in Saudi Arabia, key cities in the country have some of the highest rates in the world, disproportionate to their commercial real estate leasing pricing.
• Monsha'at, a government body that promotes, develops, and nurtures the SME sector, is actively engaging with public and private sector organizations to help and improve flexible office spaces on a number of fronts to address this difficulty.