Specialized real estate reports have revealed that Al-Waha is the neighborhood with the highest residential apartment prices, reaching 900,000 riyals, while Al-Marwa and Al-Qadisiyah are among the cheapest options, averaging 250,000 riyals. As for residential villas, the average sales price is 1,787,926 riyals. As expected, average prices vary across all areas of the city, with high prices concentrated in the city center and north, and lower prices in southern Riyadh.
Reports show that the current average sales price for apartments in Riyadh is 441,656 riyals, while prices in some areas rise to 700,000, for example: the Hatin, Al-Ra’id, and Al-Hamra neighborhoods in eastern Riyadh.
The current average annual rent for apartments in Riyadh is 26,935 riyals, with rents in central Riyadh rising to 70,000 riyals, while lower rates of 19,000 riyals were recorded in southern Riyadh.
A report prepared by “Chitterton,” a firm specializing in real estate consulting, stated that the average rental prices for residential villas in Riyadh reached 118,668 riyals, with the city center naturally being the most expensive area; in neighborhoods such as Al-Waha, Al-Murooj, Al-Sulaimaniyah, Al-Wurood, and Al-Olaya, average prices reach 250,000 riyals, while the cheapest areas are scattered throughout Riyadh, where prices drop to 90,000 riyals.
The report covers the real estate sector in Riyadh during the second quarter of this year, noting the growing demand for affordable housing, as population growth in the Saudi capital continues at rates exceeding supply in the real estate market, An analysis of the real estate sector in Riyadh for the second quarter of 2016 indicates that Riyadh’s population has grown by 52% over the past 15 years, reaching 6.5 million in 2016, However, only 500,000 housing units were built during the same period, leading to a shortage of low-cost housing throughout the capital.
On the same topic, Declan McNaughton, Managing Director of Chestertons Middle East in the UAE, explained that the Kingdom recognizes the importance of addressing the shortage of low-cost housing units, but the continued decline in oil prices has led to reduced public spending, which in turn has affected government housing projects. Although rental rates have not been significantly affected, prices have begun to rise in some areas that previously offered good options for renters on a limited budget.
