Rental prices in Saudi Arabia rise in 12 cities and decline in 4 others during May

Data from the General Authority for Statistics showed that the residential rental price index increased in 12 major cities across the Kingdom during May 2025 compared to April, while prices dropped in 4 cities.

According to the data, the overall residential rental index in Saudi Arabia rose by 0.39% monthly and increased 8.05% annually compared to May 2024.

The rental index is a key indicator in the real estate market, especially considering that over 1.4 million Saudi households rely on rented housing, along with more than 15 million expatriates living in rental units.

Table: Residential Rental Price Index in Saudi Arabia – May 2025

Monthly Performance Summary:

Four Saudi cities recorded slight declines in rental prices during May 2025. Taif topped the list with a drop of 0.34%, followed by Tabuk (-0.21%), Al-Baha (-0.13%), and Jazan (-0.03%).

Conversely, most major cities witnessed varying increases in rental indices compared to April, led by Arar with the highest monthly rise of 1.86%, followed by Madinah at 0.90%, Al-Hofuf at 0.70%, Riyadh at 0.61%, and Dammam at 0.59%.

This surge in rental indicators reflects movement in the real estate market and rising demand for apartments for rent in Riyadh and other major cities.

Rental prices in Saudi Arabia show noticeable disparities between regions, prompting many residents to search for more affordable options such as cheap monthly or annual rentals in Riyadh, or monthly rental apartments in Jeddah, including budget offers like family apartments for rent in Jeddah for 1000 SAR, which are popular in some lower-income neighborhoods.

The Rising Trend in Saudi Rental Prices Continues to Dominate the Real Estate Market

The rental index in Saudi Arabia continues its upward trend in May 2025, reflecting strong momentum in the real estate sector, particularly in key cities such as Riyadh, Dammam, and Madinah.

Although some cities showed slight declines in prices, the overall picture points to an active market driven by demographic and economic factors, along with increasing real estate investment.

This upward trend challenges real estate developers to reassess their strategies to meet growing market needs, especially in cities showing high growth rates. It also highlights the importance of closely monitoring indicators and regular data to guide housing and investment policies effectively, ensuring balance and sustainability in the rental market over the long term.