Data released byGeneral Authority for Statistics, revealed an increase residential rental prices in the Kingdom of Saudi Arabia by 10% during the month of February, driven by a 9.1% increase in villa rental prices, noting that the rise in this category had a significant impact on the annual inflation rate for February 2024, as it accounts for 21%.
The monthly inflation index was affected by a 1.2% increase in the housing, water, electricity, gas, and other fuels category, which was in turn influenced by a 1.4% rise in actual housing rental prices.
The surge in rental prices in the Kingdom reflects the rise in residential real estate prices to their highest level in eight years, which is the result of a surge in the prices of land suitable for development projects. Minister of Municipal, Rural Affairs, and Housing Majid Al-Hogail described this surge in remarks he made last June during his participation in the Future of Real Estate Forum, calling it “slightly exaggerated,” noting the “need to make large tracts of land available in the major cities of Riyadh, Jeddah, and Dammam.”
Residential Rental Rates
