It was revealed by Jadwa Investment Company revealed that residential rents in the Kingdom recorded another annual increase last year, in 2023, averaging 9.5%, compared to an average increase of 2% the previous year, in 2022.

In a report, the company explained that the increase in rents was the result of rising mortgage interest rates and increased demand from foreigners for real estate units.

“Jadwa” expects mortgage lending to rise in the second half of 2024 as interest rates are cut, noting that new mortgage loans recorded a slight decline in December, down 2% year-over-year. In terms of volume, new mortgage contracts fell by approximately 51,000 during 2023 as a whole.