Rental values for residential apartments in Jeddah have declined significantly, exceeding 25% in some residential neighborhoods, compared to previous years, attributing this to the impact of the severe recession currently affecting the sector, as some real estate experts have monitored rental price trends for residential units.

For his part, Abdullah Al-Ahmari, chairman of the Real Estate Appraisal Committee at the Jeddah Chamber of Commerce, attributed the observed decline in rental prices for residential units in Jeddah to the gap between supply and demand. While supply began to rise over the past two years, we have seen a proliferation of signs and advertisements for apartments and villas for rent.

Abdullah Al-Ahmari predicted that fiscal balance programs—such as imposing fees on residents’ dependents and family members—will contribute to a further decline in rental and sales prices for residential units, whether apartments or villas, in the future. On the same topic, Yasser Abdulaziz Abu Ateeq, a member of the Housing Committee at the Jeddah Chamber of Commerce, confirmed the decline in residential unit rents, noting that the proliferation of billboards indicates an increase in supply.

Yasser Abu Ateeq said, “We should not expect sharp declines in rental prices, given that many investors and developers have halted construction over the past two years, as the current supply was built prior to that period. Although various factors and developments may influence the supply and demand for residential units, the halt in construction by investors and developers will play a greater role in the shortage of residential units.

It is worth noting that recent data released by the Jeddah Chamber of Commerce indicated that the actual demand in the city of Jeddah amounts to 250,000 residential units over the next ten years—an average of 25,000 units per year—to keep pace with the city’s significant population growth.