Authored by the expert who managed and guided the team behind the Saudi Arabia Property Pack
Yes, the analysis of Riyadh's property market is included in our pack
This guide answers every practical question a foreigner might have about renting out residential property in Riyadh in 2026.
We cover legal ownership rules, rental yields, neighborhood performance, tenant expectations, and both long-term and short-term rental strategies.
We constantly update this blog post to reflect the latest regulations, market data, and on-the-ground realities in Riyadh.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Riyadh.
Insights
- Riyadh imposed a five-year rent freeze in late 2025, which means your upside as a landlord now comes from buying well and minimizing vacancy rather than pushing annual rent increases.
- The average short-term rental occupancy in Riyadh sits around 36%, meaning you would have roughly two empty nights for every booked night if you go the Airbnb route.
- Gross rental yields in Riyadh typically range from 4.5% to 7%, but net yields often drop to 2.8% to 5.2% once you factor in property management, maintenance, and vacancy costs.
- Foreign ownership of residential property in Riyadh became legally possible under the January 2026 framework, though specific zones and eligibility criteria are still being rolled out by the regulator.
- The northern districts of Riyadh like Al Malqa, Hittin, and Al Narjis attract families and command strong long-term rental demand due to schools and newer housing stock.
- Premium areas like the Diplomatic Quarter and Al Olaya see monthly rents for 2-bedroom apartments reaching SAR 9,500 or higher, driven by expat and corporate demand.
- Short-term rentals in Riyadh require tourism-style licensing under the Ministry of Tourism framework, and operating without a permit carries real enforcement risk.
- Property management fees for foreign landlords in Riyadh typically run 5% to 8% of rent, but skipping professional management as a remote owner often leads to bigger problems.
- Neighborhoods like Ar Rimal and Qurtubah tend to offer better yields than flashy central addresses because purchase prices have not run as far ahead of rents.
Can I legally rent out a property in Riyadh as a foreigner right now?
Can a foreigner own-and-rent a residential property in Riyadh in 2026?
As of early 2026, Saudi Arabia's updated real estate ownership law now allows foreigners to purchase and own residential property in Riyadh, and once you legally own the unit, renting it out is generally permitted.
The most common ownership structure for foreigners is direct personal ownership under the new non-Saudi framework, though holding property through a locally registered company remains an option for some investors.
The biggest restriction you will face is that not all zones are open to foreign buyers yet, so REGA's implementing regulations will determine exactly which Riyadh neighborhoods you can actually purchase in.
If you're not a local, you might want to read our guide to foreign property ownership in Riyadh.
Do I need residency to rent out in Riyadh right now?
You do not strictly need to live in Saudi Arabia to rent out your Riyadh property, but practically speaking, most foreign owners use a local property manager to handle day-to-day operations and lease documentation.
You should plan on needing some form of tax registration with ZATCA depending on how you hold the property and how your rental income is classified.
While international transfers are technically possible, opening a local Saudi bank account makes rent collection much smoother because tenants and the official Ejar lease platform work better with local payment trails.
Managing a Riyadh rental entirely from abroad is feasible if you have a reliable property manager, but trying to do it informally without local support is where most foreign landlords run into problems.
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What rental strategy makes the most money in Riyadh in 2026?
Is long-term renting more profitable than short-term in Riyadh in 2026?
As of early 2026, long-term renting is typically the safer and more predictable strategy for most foreign investors in Riyadh, while short-term renting offers higher potential income but comes with significantly more risk and operational complexity.
A well-managed long-term rental in a good Riyadh location might generate SAR 72,000 to SAR 114,000 per year (roughly USD 19,000 to 30,000 or EUR 17,500 to 28,000), whereas a short-term rental could theoretically earn 20% to 40% more, but only if you beat the city's average occupancy of around 36%.
Short-term renting tends to work best in central business areas like Al Olaya or near the Diplomatic Quarter, where business travelers and expats on short assignments create demand for furnished, flexible stays.
What's the average gross rental yield in Riyadh in 2026?
As of early 2026, the average gross rental yield for residential properties in Riyadh sits around 5.5%, though this varies significantly depending on location and property type.
Most residential properties in Riyadh fall within a gross yield range of 4.5% to 7%, with prime central locations often yielding less and emerging northern districts sometimes yielding more.
Smaller apartments and studios typically achieve the highest gross rental yields in Riyadh because their lower purchase prices relative to achievable rents create a more favorable ratio than larger villas.
By the way, we have much more granular data about rental yields in our property pack about Riyadh.
What's the realistic net rental yield after costs in Riyadh in 2026?
As of early 2026, the average net rental yield after all costs for residential properties in Riyadh is around 3.8%, which is noticeably lower than the gross figure due to Riyadh-specific operating expenses.
Most landlords in Riyadh realistically experience net yields between 2.8% and 5.2%, depending on how well they manage costs and minimize vacancy.
The three main cost categories that eat into your gross yield in Riyadh are property management fees (essential for remote foreign owners), air conditioning maintenance and repairs (Riyadh's extreme heat is hard on cooling systems), and the Real Estate Transaction Tax (RETT) when you eventually sell.
You might want to check our latest analysis about gross and net rental yields in Riyadh.
What monthly rent can I get in Riyadh in 2026?
As of early 2026, typical monthly rents in Riyadh run around SAR 3,500 (USD 930, EUR 860) for a studio, SAR 5,000 (USD 1,330, EUR 1,230) for a 1-bedroom, and SAR 7,500 (USD 2,000, EUR 1,850) for a 2-bedroom apartment.
A decent studio in Riyadh will realistically rent for SAR 2,800 to SAR 4,500 per month (USD 750 to 1,200, EUR 690 to 1,110), depending on location and condition.
A typical 1-bedroom apartment in Riyadh commands SAR 3,800 to SAR 6,500 per month (USD 1,010 to 1,730, EUR 940 to 1,600), with newer buildings in northern districts at the higher end.
A standard 2-bedroom apartment in Riyadh rents for SAR 5,500 to SAR 9,500 per month (USD 1,470 to 2,530, EUR 1,360 to 2,340), with premium areas like the Diplomatic Quarter pushing even higher.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Riyadh.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Saudi Arabia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the real numbers I should budget for renting out in Riyadh in 2026?
What's the total "all-in" monthly cost to hold a rental in Riyadh in 2026?
As of early 2026, the total all-in monthly cost to hold a typical rental property in Riyadh runs around SAR 1,200 to SAR 1,800 (USD 320 to 480, EUR 300 to 440) when averaged across the year for a mid-range apartment.
Most landlords in Riyadh should budget for holding costs between 20% and 30% of their monthly rent, which covers management, maintenance, service charges, and letting fees spread over time.
The single largest cost category for foreign landlords in Riyadh is typically property management, running 5% to 8% of rent, because managing remotely without professional help creates serious operational risks.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Riyadh.
What's the typical vacancy rate in Riyadh in 2026?
As of early 2026, the typical vacancy rate for long-term rentals in Riyadh runs around 6% to 10% annually, which translates to roughly three to five weeks without a tenant each year.
You should budget for about one month of vacancy per year in Riyadh because even in a high-demand market, tenant turnover, lease gaps, and minor refurbishment periods add up.
The main factor that drives vacancy differences across Riyadh neighborhoods is proximity to employment centers and expat hubs, with areas like Al Olaya and KAFD seeing faster leasing than outer districts.
Tenant turnover in Riyadh tends to peak around the summer months when expat contract cycles end and families relocate before the new school year, so landlords should prepare for potential gaps during June through August.
We have a whole part covering the best rental strategies in our pack about buying a property in Riyadh.
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Where do rentals perform best in Riyadh in 2026?
Which neighborhoods have the highest long-term demand in Riyadh in 2026?
As of early 2026, the three neighborhoods with the strongest overall long-term rental demand in Riyadh are Al Olaya, Al Malqa, and the area around King Abdullah Financial District (KAFD), all of which benefit from business proximity and quality housing stock.
Families looking for long-term rentals in Riyadh concentrate in northern neighborhoods like Hittin, Al Narjis, Al Yasmin, and Qurtubah, where they find good schools, newer compounds, and quieter residential streets.
Students and early-career renters in Riyadh tend to favor more affordable central areas like Al Malaz and Al Murabba, which offer decent access to universities and employment nodes without premium pricing.
Expats and international professionals in Riyadh cluster in the Diplomatic Quarter (Al Safarat), Al Mohammadiyah, and Al Olaya, where they find compounds, embassies, and corporate office proximity.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Riyadh.
Which neighborhoods have the best yield in Riyadh in 2026?
As of early 2026, the three neighborhoods offering the best rental yields in Riyadh are Ar Rimal, Qurtubah, and Al Rawdah, where purchase prices have not run as far ahead of achievable rents.
These top-yielding Riyadh neighborhoods typically deliver gross rental yields in the 5.5% to 7% range, compared to 4% to 5% in more expensive central locations.
The main characteristic that allows these neighborhoods to achieve higher yields is that they attract steady local and middle-income tenant demand without the price premium that comes with prime expat addresses.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Riyadh.
Where do tenants pay the highest rents in Riyadh in 2026?
As of early 2026, the three neighborhoods where tenants pay the highest rents in Riyadh are the Diplomatic Quarter (Al Safarat), Al Olaya, and Hittin, all commanding premium pricing due to their desirability among high-income renters.
A standard 2-bedroom apartment in these premium Riyadh neighborhoods typically rents for SAR 8,000 to SAR 12,000 per month (USD 2,130 to 3,200, EUR 1,970 to 2,960), with luxury units going even higher.
What makes these neighborhoods command the highest rents is their combination of security, proximity to embassies and corporate headquarters, and access to international schools and high-end amenities that expat tenants prioritize.
The typical tenant profile in these highest-rent Riyadh neighborhoods includes senior expat executives on corporate housing packages, embassy staff, and wealthy Saudi families who value prestige addresses and turnkey living.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Saudi Arabia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Riyadh in 2026?
What features increase rent the most in Riyadh in 2026?
As of early 2026, the three property features that increase monthly rent the most in Riyadh are powerful and reliable central air conditioning, covered or shaded parking, and modern kitchen and bathroom fit-outs, all of which tenants actively pay premiums for in this climate.
High-quality central cooling is the single most valuable feature in Riyadh and can add a 10% to 15% rent premium because tenants know that poor AC means unbearable summers and high electricity bills.
One commonly overrated feature that Riyadh landlords invest in but tenants do not pay much extra for is elaborate outdoor landscaping, since the extreme heat means most residents spend minimal time outside anyway.
An affordable upgrade that provides strong return on investment for Riyadh landlords is installing a smart thermostat and energy-efficient AC units, which tenants value for comfort and cost savings without requiring a major renovation.
Do furnished rentals rent faster in Riyadh in 2026?
As of early 2026, furnished apartments in Riyadh typically rent 2 to 4 weeks faster than unfurnished units because they attract expats on corporate relocations and consultants who need turnkey solutions without the hassle of buying furniture.
Furnished rentals in Riyadh command a rent premium of roughly 15% to 25% over comparable unfurnished units, though landlords must factor in higher wear-and-tear costs and more frequent furniture replacement.
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How regulated is long-term renting in Riyadh right now?
Can I freely set rent prices in Riyadh right now?
Landlords in Riyadh cannot freely increase rents right now because the Saudi government imposed a five-year rent freeze in late 2025, and even for vacant properties, the rent is anchored to the last recorded amount in the Ejar system.
This means that during an existing tenancy in Riyadh, rent increases are essentially prohibited for the freeze period, and new leases on previously rented units face constraints based on historical Ejar records.
What's the standard lease length in Riyadh right now?
The standard lease length for residential rentals in Riyadh is 12 months, with contracts typically processed and documented through the official Ejar platform that the government requires for formal tenancy agreements.
Landlords in Riyadh can generally request a security deposit equivalent to one to two months' rent (roughly SAR 5,000 to SAR 15,000, or USD 1,330 to 4,000, EUR 1,230 to 3,700 for typical apartments), though exact limits depend on the contract terms documented in Ejar.
At the end of a tenancy in Riyadh, the security deposit must be returned to the tenant minus any documented deductions for damages or unpaid rent, with disputes handled through the enforcement mechanisms tied to the Ejar-registered contract.
We made this infographic to show you how property prices in Saudi Arabia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Riyadh in 2026?
Is Airbnb legal in Riyadh right now?
Airbnb-style short-term rentals are legal in Riyadh, but they operate under a formal regulatory framework overseen by the Ministry of Tourism rather than being an unregulated grey area.
You need a license or permit to operate a short-term rental in Riyadh, which you obtain by registering your accommodation activity through the Ministry of Tourism's licensing system for tourism establishments.
There is no single universally cited annual night limit for short-term rentals in Riyadh as of early 2026, though specific caps may apply depending on your license category and municipality, so you should verify the rules for your exact property type.
Operating an unlicensed short-term rental in Riyadh carries real enforcement risk, with potential penalties including fines and being forced to cease operations, especially as the government tightens tourism accommodation oversight.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Riyadh.
What's the average short-term occupancy in Riyadh in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Riyadh is approximately 36%, meaning your property would be booked roughly one out of every three nights on average.
Most short-term rentals in Riyadh experience occupancy rates ranging from 25% to 50%, with well-located and well-managed properties in business districts achieving the higher end of that range.
Occupancy in Riyadh's short-term rental market peaks during major events, conferences, and the cooler months from October through March when business travel and tourism activity are strongest.
The lowest occupancy periods for Riyadh short-term rentals typically fall during the extreme summer heat of June through August and during Ramadan, when travel patterns shift significantly.
Finally, please note that you can find much more granular data about this topic in our property pack about Riyadh.
What's the average nightly rate in Riyadh in 2026?
As of early 2026, the average nightly rate for short-term rentals in Riyadh is approximately SAR 335 (USD 89, EUR 82), though this varies significantly by location, property quality, and season.
Most short-term rental listings in Riyadh fall within a nightly rate range of SAR 200 to SAR 600 (USD 53 to 160, EUR 49 to 148), with basic apartments at the low end and premium furnished units in central locations at the high end.
The typical nightly rate difference between peak season and off-season in Riyadh is around SAR 100 to SAR 150 (USD 27 to 40, EUR 25 to 37), with rates climbing during major events and conferences and dropping during summer.
Is short-term rental supply saturated in Riyadh in 2026?
As of early 2026, the Riyadh short-term rental market shows signs of competitive pressure rather than full saturation, with average occupancy around 36% indicating that supply has grown faster than demand in many areas.
The number of active short-term rental listings in Riyadh has been growing steadily as investors respond to tourism growth initiatives, though this growth has pushed down average occupancy rates across the market.
The most oversaturated neighborhoods for short-term rentals in Riyadh are central tourist-accessible areas where many investors have clustered, creating intense competition for the same pool of guests.
Neighborhoods that still have room for new short-term rental supply in Riyadh include emerging business districts near KAFD and areas serving niche demand like medical tourism zones, where supply has not yet caught up with specialized traveler needs.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Riyadh, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Real Estate General Authority (REGA) | REGA is the official Saudi regulator for real estate. | We used it to explain what changed for foreign ownership as of January 2026. We also used it to clarify what still awaits implementing regulations. |
| Ejar Official Platform | Ejar is the government-backed lease registration platform. | We used it to explain the Riyadh rent freeze rules and lease documentation requirements. We also used it to set expectations for how contracts are handled. |
| ZATCA (Tax Authority) | ZATCA is Saudi Arabia's official tax authority. | We used it to explain the Real Estate Transaction Tax that affects investor returns. We also used it for income tax considerations for foreign landlords. |
| AirDNA | AirDNA provides consistent short-term rental market data. | We used it to estimate occupancy rates and nightly prices for Riyadh Airbnbs. We also used it to assess market saturation levels. |
| Knight Frank | Knight Frank is a major global real estate research firm. | We used it to anchor purchase price estimates for yield calculations. We also used it to cross-check market direction in Riyadh. |
| CBRE Saudi Arabia | CBRE is a top-tier global real estate brokerage and research firm. | We used it to triangulate rent and yield assumptions against institutional commentary. We also used it to understand the rent freeze's market impact. |
| Ministry of Tourism | The Ministry of Tourism regulates short-term accommodation licensing. | We used it to confirm that short-term rentals require formal licensing. We also used it to anchor the regulatory framework discussion. |
| Associated Press | AP is a global wire service with high editorial standards. | We used it to confirm the rent freeze policy scope and timing. We also used it to verify enforcement claims reported publicly. |
| JLL Saudi Arabia | JLL is a leading real estate services firm with local data. | We used it to identify high-transaction neighborhoods for yield analysis. We also used it to understand where rental demand concentrates. |
| Cavendish Maxwell | Cavendish Maxwell is a respected regional real estate consultancy. | We used it to corroborate rent growth patterns in Riyadh. We also used it as an independent cross-check on supply additions. |
We have made this infographic to give you a quick and clear snapshot of the property market in Saudi Arabia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
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