The return on green goes beyond rent

Saudi Arabia’s green building market is forecast to grow from US$16.4 billion to US$33 billion by 2030. With a large share of the buildings that will define Riyadh, Jeddah and the wider Kingdom still at the design stage, decisions made now will influence their performance for years to come.

The case for sustainable buildings is not limited to rent. The return can also appear in occupier demand, the calibre of tenants a building attracts, asset value and the terms on which it is financed.

The return extends beyond rental income

Improved ESG performance has been associated with bond spreads that are 6–13 basis points tighter, while MSCI research cited in the whitepaper links strong governance with lower financing costs.

This means the commercial impact of sustainability can extend across several parts of an asset’s performance, from occupier demand and valuation to financing.

Evidence from the region and beyond

The UAE provides a close regional reference. Green-certified buildings in Dubai are reported to achieve rents up to 15% higher. A 2025 Dubai brokerage survey reported by The National also found villas with green or smart credentials achieving 8–12% higher rents and 4–7% higher resale prices.

International evidence points in the same direction. MSCI analysis shows the most sustainable London offices commanding a price premium of around 25%, while Knight Frank research shows BREEAM Outstanding offices in central London achieving rental premiums of up to 12.3%.

Design decisions matter

The timing of sustainability decisions is important. The World Green Building Council has found that green buildings can be delivered at a cost comparable to conventional buildings, with the investment recouped through lower operating costs. The greatest carbon savings are also secured at the design stage.

A clearer regional benchmark would also help valuers and lenders recognise the returns associated with sustainable buildings. By recording performance transaction by transaction, the market can build a stronger evidence base around the value of sustainability.

For Saudi Arabia, the opportunity is to embed these standards from the outset, so the next generation of buildings can be designed, valued and financed with long-term returns in mind.

Explore the full whitepaper for more insights into the return on green in Saudi real estate.

Click here to view.