Housing Rent Increases in Saudi Arabia Register 8.2% Amidst Varying Market Changes

In light of the increasing demand for real estate in major cities, the latest data from the General Authority for Statistics revealed an 8.2% rise in housing rents in Saudi Arabia during the first quarter of 2025 compared to the same period last year. This increase varied across regions of the Kingdom, with a sharp rise in some cities and a relative decline in others, demonstrating clear changes in housing patterns and investment trends.

Riyadh Leads Apartment Rent Increases

Data showed that Riyadh witnessed the highest increase in apartment rents, at 38.1%, which illustrates the growing pressure on the market due to population growth and urban transformations.

What is the increase in housing rents in Riyadh?

Riyadh recorded the highest jump among regions, especially in apartments and villas, where housing rents in Riyadh increased by 38.1% for apartments and 9.8% for villas, driven by high demand and rapid urban growth.

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

Villas Trending Upwards in Mecca and Medina

The Makkah Al-Mukarramah region recorded a significant increase of 39.2% in villa rental prices, the highest across the Kingdom, followed by Riyadh and Jazan. Conversely, rents decreased in some cities such as Abha and Buraidah.

Saudi Rental Crisis Varies by Region Despite activity in some areas, the Saudi rental crisis is evident in cities like Buraidah, which saw a significant decline in apartment rents by 9.9% and traditional houses by 7.3%, due to weak local demand there.

When is the landlord allowed to raise rent in Saudi Arabia?

According to the rental system in the Kingdom, the landlord is entitled to raise the rent only upon contract renewal, provided that the tenant is notified at least 90 days before the contract expires, and there is no active contract on the Ejar platform that restricts the amendment.

What is the rental price of a shop in Saudi Arabia? Shop rental prices vary by location, but in major cities like Jeddah and Riyadh, the annual rental price for a commercial shop in Saudi Arabia ranges between 25,000 and 120,000 Saudi Riyals, depending on the area and prime location.