The residential rentals market in the Kingdom has witnessed a wave of unprecedented increases over the past four years, as prices recorded a cumulative increase of about 33% by the end of last August compared to their levels in the same period in 2021.
This comes amid a rapid economic boom driven by the tremendous growth in the tourism, entertainment and construction sectors, in addition to demographic shifts that resulted in the entry of a large segment of young Saudis into the stage of family formation. This comes amid an accelerating economic boom driven by the tremendous growth in the tourism, entertainment and construction sectors, in addition to demographic shifts that resulted in a large segment of Saudi youth entering the stage of family formation, which doubled the demand for housing and consolidated the issue of rents as one of the most prominent issues that His Royal Highness Prince Mohammed bin Salman, Crown Prince and Prime Minister, may God protect him, directed to deal with to balance the market and enhance opportunities for citizens to own suitable housing.
Rents are one of the most important issues that His Royal Highness Prince Mohammed bin Salman, Crown Prince and Prime Minister, has directed to deal with to achieve balance in the market and enhance opportunities for citizens to own suitable housing.
Residential rents jump to a record high
According to data from The General Authority for Statistics, the actual residential rents index jumped to 118.1 points by the end of August 2025 from 88.8 points in August 2021, an increase of 29.3 points equivalent to 33%.According to data from The General Authority for Statistics <The data shows that in August 2021, the market ended a phase of decline that extended since January 2019, after which it entered a successive upward wave that included a limited decline in 2021 by 2%, an annual increase of 6.1% in 2022, a greater acceleration in 2023 by 8.1%, and the most prominent rise in 2024 by 10.8%. During the first eight months of this year, the index continued to grow, recording a new increase of 3.5%.
For the first eight months of this year, the index continued to grow, recording a new increase of 3.5%.
Variation in rental movement between cities
<At the city level, the July 2025 data (with a new base year of 2023) shows a clear disparity in the movement of rents. Riyadh topped the scene with a record 69% increase in four years, bringing its index to 158.1 points compared to 93.28 points in July 2021. It was followed by Buraydah with 45% (145 points vs. 100.12 points), Jeddah with 35%, Mecca 22%, Abha 14%, Dammam 12%, Hail 7%, and Sakaka 5%. In contrast, cities such as Al Baha, Najran, Taif, Jizan and Tabuk saw declines ranging from 3% to 9%. <This remarkable rise in residential rents, especially in major cities such as Riyadh and Buraydah, is due to the rapid growth in demand against limited supply, at a time when Vision 2030 projects have attracted major international companies to establish their regional headquarters in the country, increasing pressure on the housing market. The strong rise in prices per meter in some vital locations - especially north and east of Riyadh - also contributed to the pace of the rise.
