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SUMMARY
We analyzed apartment rental yields in Riyadh, as of 2026, for residential apartment buyers, using the raw dataset provided and converting it into a practical yield guide for foreign individual buyers.
This tracker is built to be updated regularly, so the numbers should be read as a May 2026 snapshot of the Riyadh apartment market rather than a permanent valuation.
The clearest finding is that Riyadh apartment rental yields look high on a gross basis, but the better investment question is net yield after maintenance, vacancy, management, service charges, furnishing refresh, and leasing friction.
Al Arid, Al Rabwah, Al Narjis, Al Yasmin, Qurtubah, and Al Sulaymaniyah stand out for stronger estimated net rental yield in Riyadh, especially in studios and 1-bedroom apartments.
Hittin and Al Malqa remain desirable places to live, but they are weaker for pure income investors because high purchase prices compress the net yield.
Studios usually produce the strongest simple yield in Riyadh, with several neighborhoods showing estimated net yields around 7.7% to 8.1%.
For most beginner foreign buyers, 1-bedroom apartments may be safer than studios because they combine strong yield with a deeper tenant base and better resale logic.
The most stable rental-income areas are Al Olaya, Al Sulaymaniyah, Al Nakheel, King Fahd, and Al Malqa, where tenant demand is broad even when the yield is not the highest.
The biggest market warning in May 2026 is Riyadh's rent-freeze context. Buyers cannot assume fast rent growth will rescue a weak purchase price, so current rent must already support the investment case.
The practical takeaway is simple: foreign buyers looking at Riyadh apartments should compare net yield, tenant depth, building quality, resale liquidity, and rent-freeze risk together.
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Apartment rental yields in Riyadh in 2026
This table compares apartment rental yields in Riyadh by neighborhood and apartment type.
For each area, the table shows estimated purchase price, estimated monthly rent, gross rental yield, and net rental yield for studios, 1-bedroom apartments, and 2-bedroom apartments.
The raw dataset focuses on the core yield metrics a foreign buyer needs first: price, rent, gross yield, and net yield. Finally, please note you'll find much more detailed data in our real estate pack about Riyadh.
| Neighborhood | Studio average purchase price | Studio average monthly rent | Studio gross rental yield | Studio net rental yield | 1-bedroom average purchase price | 1-bedroom average monthly rent | 1-bedroom gross rental yield | 1-bedroom net rental yield | 2-bedroom average purchase price | 2-bedroom average monthly rent | 2-bedroom gross rental yield | 2-bedroom net rental yield |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Al Aqiq | SAR 420,000 | SAR 3,500 | 10.0% | 7.6% | SAR 550,000 | SAR 4,300 | 9.4% | 7.0% | SAR 800,000 | SAR 6,100 | 9.2% | 6.8% |
| Al Arid | SAR 330,000 | SAR 3,000 | 10.9% | 8.1% | SAR 430,000 | SAR 3,900 | 10.9% | 8.1% | SAR 620,000 | SAR 5,400 | 10.5% | 7.7% |
| Al Malqa | SAR 570,000 | SAR 4,200 | 8.8% | 6.5% | SAR 735,000 | SAR 5,600 | 9.1% | 6.8% | SAR 1,070,000 | SAR 8,200 | 9.2% | 6.9% |
| Al Murabba | SAR 375,000 | SAR 3,200 | 10.2% | 7.4% | SAR 490,000 | SAR 4,100 | 10.0% | 7.2% | SAR 710,000 | SAR 5,800 | 9.8% | 7.0% |
| Al Nakheel | SAR 460,000 | SAR 3,900 | 10.2% | 7.8% | SAR 600,000 | SAR 5,000 | 10.0% | 7.6% | SAR 875,000 | SAR 7,000 | 9.6% | 7.2% |
| Al Narjis | SAR 400,000 | SAR 3,400 | 10.2% | 7.7% | SAR 520,000 | SAR 4,500 | 10.4% | 7.9% | SAR 755,000 | SAR 6,500 | 10.3% | 7.8% |
| Al Nuzha | SAR 390,000 | SAR 3,300 | 10.2% | 7.7% | SAR 505,000 | SAR 4,200 | 10.0% | 7.5% | SAR 730,000 | SAR 6,000 | 9.9% | 7.4% |
| Al Olaya | SAR 530,000 | SAR 4,300 | 9.7% | 7.5% | SAR 690,000 | SAR 5,700 | 9.9% | 7.7% | SAR 1,005,000 | SAR 7,800 | 9.3% | 7.1% |
| Al Qirawan | SAR 360,000 | SAR 3,200 | 10.7% | 7.7% | SAR 465,000 | SAR 4,200 | 10.8% | 7.8% | SAR 680,000 | SAR 5,900 | 10.4% | 7.4% |
| Al Rabwah | SAR 335,000 | SAR 3,100 | 11.1% | 8.1% | SAR 435,000 | SAR 3,950 | 10.9% | 7.9% | SAR 635,000 | SAR 5,500 | 10.4% | 7.4% |
| Al Sulaymaniyah | SAR 440,000 | SAR 3,700 | 10.1% | 7.7% | SAR 570,000 | SAR 4,900 | 10.3% | 7.9% | SAR 830,000 | SAR 6,800 | 9.8% | 7.4% |
| Al Yasmin | SAR 415,000 | SAR 3,600 | 10.4% | 7.9% | SAR 540,000 | SAR 4,700 | 10.4% | 7.9% | SAR 790,000 | SAR 6,700 | 10.2% | 7.7% |
| Hittin | SAR 665,000 | SAR 4,700 | 8.5% | 6.2% | SAR 865,000 | SAR 6,200 | 8.6% | 6.3% | SAR 1,255,000 | SAR 9,200 | 8.8% | 6.5% |
| King Fahd | SAR 450,000 | SAR 3,800 | 10.1% | 7.8% | SAR 585,000 | SAR 4,800 | 9.8% | 7.5% | SAR 850,000 | SAR 6,900 | 9.7% | 7.4% |
| Qurtubah | SAR 405,000 | SAR 3,500 | 10.4% | 7.8% | SAR 525,000 | SAR 4,600 | 10.5% | 7.9% | SAR 765,000 | SAR 6,400 | 10.0% | 7.4% |
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.
Which neighborhoods offer the best net yield among areas people actually want to live in Riyadh?
The best net-yield neighborhoods among areas people actually want to live in Riyadh are Al Narjis, Al Yasmin, Qurtubah, Al Sulaymaniyah, and Al Nakheel.
These areas combine estimated net yields around 7.6% to 7.9% with enough tenant demand, road access, and resale liquidity to make the income case credible.
The strongest signal is that these are not the cheapest Riyadh neighborhoods, but they are cheaper than Hittin, Al Malqa, and the most expensive parts of Al Olaya.
Al Narjis is one of the cleanest examples. A 1-bedroom apartment is estimated at SAR 520,000, rents for about SAR 4,500 per month, and produces about 7.9% net yield.
Al Yasmin is similar. A 1-bedroom apartment is estimated at SAR 540,000 with SAR 4,700 monthly rent, which also gives about 7.9% net yield.
The practical takeaway is that a beginner buyer usually gets a better income balance in second-tier livable districts than in Riyadh's most fashionable northern neighborhoods.
Where can I find apartments with above-average yields and below-average entry prices in Riyadh?
The clearest Riyadh areas with above-average yields and below-average entry prices are Al Arid, Al Rabwah, Al Qirawan, Qurtubah, and Al Narjis.
These neighborhoods generally offer studio or 1-bedroom entry prices below SAR 525,000, while estimated net yields often sit around 7.7% to 8.1%.
Al Arid is the most obvious lower-ticket case. The estimated 1-bedroom purchase price is about SAR 430,000, with monthly rent around SAR 3,900 and net yield near 8.1%.
Al Rabwah is similarly attractive on price. A 1-bedroom apartment is estimated at SAR 435,000, with monthly rent around SAR 3,950 and net yield near 7.9%.
Qurtubah and Al Narjis are more practical than glamorous, which is exactly why the numbers can work. They attract renters who care about space, road access, and value rather than prestige.
The trade-off is resale liquidity. A cheaper Riyadh apartment can work well for income, but only if the building, layout, parking, and daily access are strong enough to keep the tenant pool deep.
Where does the rent level justify the purchase price most clearly in Riyadh?
The rent level most clearly justifies the purchase price in Al Narjis, Qurtubah, Al Yasmin, Al Sulaymaniyah, and King Fahd.
These Riyadh neighborhoods show rational rent-to-price ratios without relying only on very low purchase prices.
Al Narjis 1-bedroom apartments show an estimated gross yield of 10.4% and net yield of 7.9%. That is strong because the rent is high enough to support the price after normal ownership costs.
Qurtubah 1-bedroom apartments are similar. A unit priced around SAR 525,000 and rented around SAR 4,600 per month produces about 10.5% gross yield and 7.9% net yield.
Al Yasmin also looks rational because 1-bedroom apartments combine a purchase estimate near SAR 540,000 with monthly rent around SAR 4,700.
The honest interpretation is that high rent alone is not enough. Hittin has high rents, but its purchase prices are also high, so the net yield falls closer to 6.2% to 6.5%.
We have actually built the our real estate pack about Riyadh to make sure you won’t buy in the wrong area. Check it out.
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Where is the best place to buy if I want stable rental income rather than maximum yield in Riyadh?
The best places to buy for stable rental income rather than maximum yield in Riyadh are Al Olaya, Al Sulaymaniyah, Al Nakheel, King Fahd, and Al Malqa.
These neighborhoods are not always the highest-yielding areas, but they have deeper tenant pools, better recognition, and stronger liquidity.
Al Olaya works because it is central, employment-linked, and familiar to renters. Its 1-bedroom apartment estimate is SAR 690,000, with monthly rent around SAR 5,700 and net yield of 7.7%.
Al Sulaymaniyah gives a more balanced central profile. A 1-bedroom apartment is estimated at SAR 570,000 with monthly rent around SAR 4,900 and net yield of 7.9%.
Al Nakheel and King Fahd are practical residential areas with established demand. They may not feel as fashionable as Hittin, but they can be easier for tenants who want access, livability, and predictable housing.
For a beginner buyer, a 7.2% to 7.7% net yield in a liquid Riyadh area can be better than a slightly higher yield in a building with slower leasing and weaker resale demand.
Which apartment type gives the best return for the lowest total investment in Riyadh?
The apartment type that gives the best return for the lowest total investment in Riyadh is usually the studio apartment, followed closely by the compact 1-bedroom apartment.
Studios often show the strongest yield because the purchase price is lower while rent remains efficient for single professionals and young renters.
In Al Arid, a studio is estimated at SAR 330,000 and rents for about SAR 3,000 per month, giving 10.9% gross yield and 8.1% net yield.
In Al Rabwah, a studio is estimated at SAR 335,000 and rents for about SAR 3,100 per month, giving 11.1% gross yield and 8.1% net yield.
However, 1-bedroom apartments may be safer for many foreign buyers. They appeal to singles, couples, and some expat renters, which can reduce vacancy risk compared with a very small studio.
Two-bedroom apartments produce higher absolute rent, but the purchase price rises sharply. They work best in family-oriented districts, but they are less efficient for a beginner trying to maximize return per riyal invested.
We give you more details in the our real estate pack about Riyadh.
Which neighborhoods offer strong rental income with the lowest vacancy risk in Riyadh?
The Riyadh neighborhoods that offer strong rental income with lower vacancy risk are Al Olaya, Al Sulaymaniyah, Al Nakheel, Al Malqa, and King Fahd.
These areas combine good rent levels with durable tenant demand, which matters more than chasing the highest yield number.
Al Olaya has central business and lifestyle demand. A 2-bedroom apartment rents for about SAR 7,800 per month, while a 1-bedroom apartment rents for about SAR 5,700 per month.
Al Malqa has strong renter demand from higher-income households and newer buildings. Its 2-bedroom rent estimate is about SAR 8,200 per month, even though the net yield is only around 6.9%.
Al Nakheel offers a useful middle point. A 2-bedroom apartment is estimated at SAR 875,000, rents for around SAR 7,000 per month, and produces about 7.2% net yield.
The honest interpretation is that a premium unit can earn more rent, but a practical mid-premium apartment may sit empty for less time.
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.
Which areas look overpriced relative to their rental income in Riyadh?
The Riyadh areas that look most overpriced relative to their rental income are Hittin, Al Malqa, and parts of Al Olaya.
These are excellent residential areas, but they are weaker for pure rental-income investors because purchase prices are high compared with the rent they generate.
Hittin has the clearest yield compression. A 1-bedroom apartment is estimated at SAR 865,000, rents for about SAR 6,200 per month, and produces only about 6.3% net yield.
Hittin 2-bedroom apartments also require a high entry ticket. The estimate is SAR 1,255,000, with monthly rent around SAR 9,200 and net yield of about 6.5%.
Al Malqa is similar. It has strong rents, but 1-bedroom apartments are estimated at SAR 735,000 and 2-bedroom apartments at SAR 1,070,000, which keeps net yields around 6.8% to 6.9%.
The trade-off is not good neighborhood versus bad neighborhood. It is income return versus lifestyle, prestige, and capital preservation.
Which neighborhoods should I avoid even if the rental yield looks attractive in Riyadh?
A beginner should be careful with Al Arid, Al Qirawan, Al Murabba, and weaker pockets of Al Rabwah even when the rental yield looks attractive in Riyadh.
The issue is not that these areas are bad. The issue is that a strong headline yield can hide leasing risk, resale risk, and building-quality risk.
Al Arid looks excellent on the table. A studio is estimated at 8.1% net yield, and a 1-bedroom apartment is also estimated at 8.1% net yield.
But the buyer must check road access, parking, furnishing standard, distance from daily services, and whether the rent assumption matches the exact micro-location.
Al Murabba is different. It has central logic and redevelopment potential, but older buildings may need more maintenance and may not lease like newer apartments.
The practical rule is not to avoid the whole neighborhood automatically. Avoid bad micro-locations, old buildings with weak maintenance, oversized units, and apartments priced as if future redevelopment has already happened.
Which neighborhoods look risky even though the rental yield is high in Riyadh?
The Riyadh neighborhoods that look risky even though the rental yield is high are Al Arid, Al Qirawan, Al Rabwah, and Al Murabba.
Their estimated net yields can look better than premium northern districts, but the risk-adjusted return may be weaker if tenant depth is thinner.
Al Qirawan shows strong numbers, with a 1-bedroom apartment estimated at SAR 465,000, monthly rent around SAR 4,200, and net yield of 7.8%.
That yield is useful, but the investor still needs to confirm local demand. A cheaper apartment only works if renters actually want that building, layout, and location.
Al Rabwah is attractive on price, but it requires careful unit selection. The area can work well for affordable family and professional demand, but older or poorly finished units will not capture the same rent as newer stock.
The safer alternatives are Al Narjis, Qurtubah, Al Yasmin, and Al Sulaymaniyah. Their yields are slightly lower or similar, but the demand pool is more balanced.
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What neighborhoods should I avoid when buying a rental apartment in Riyadh?
When buying a rental apartment in Riyadh, the main avoid-or-be-careful list is weak pockets of Al Arid, Al Qirawan, Al Murabba, and older low-quality stock in Al Rabwah.
These neighborhoods should not be rejected blindly, but they need stricter pricing and better due diligence than safer, more liquid areas.
Avoid Al Arid when the apartment is far from services or priced like a more established northern neighborhood. The yield can be high, but the tenant pool may be less forgiving.
Avoid Al Qirawan when the rent assumption depends on premium tenants who may prefer Al Malqa, Al Yasmin, or Hittin.
Avoid Al Murabba if the building is old, expensive to maintain, or sold mainly on future redevelopment hype. Redevelopment potential does not automatically make every existing apartment a good rental investment.
Avoid Al Rabwah only for poor-quality units. A well-priced apartment can work, but a beginner should discount for older buildings and weaker resale prestige.
Which neighborhoods are seeing rental demand weaken, and why, in Riyadh?
The Riyadh areas most at risk of softer rental demand are overpriced premium pockets of Hittin and Al Malqa, older central stock in Al Murabba, and weaker outer-north pockets of Al Arid or Al Qirawan.
This is not a collapse story. It is a pricing and tenant-depth story.
The rent-freeze context changes the market. Because Riyadh residential rents are constrained under the five-year freeze, landlords cannot simply assume annual rent increases will repair an overpaid purchase price.
In premium areas, demand may remain strong, but affordability limits tenant depth. Hittin 2-bedroom apartments need around SAR 9,200 per month to support the current estimated price.
In older central areas, demand can split between renovated, well-located units and dated buildings. A renovated apartment can lease well, while a tired apartment nearby can struggle.
The recommendation is to monitor, not automatically avoid. Buy only where the current rent already supports the price.
Which neighborhoods are seeing new developments that could create stronger rental demand in Riyadh?
The clearest development-linked Riyadh neighborhoods are Al Murabba, Al Narjis, Al Aqiq, Al Malqa, Hittin, and nearby northern districts such as Al Yasmin.
The most important demand drivers are not only new apartments. Offices, transport, events, mixed-use projects, and airport-side growth can matter more for rental demand.
Al Murabba is the biggest redevelopment-linked example in the dataset. It has central logic, but the investment case depends heavily on the exact building and entry price.
Al Narjis and nearby northern areas benefit from Riyadh's northward growth and practical access toward airport-side corridors.
Al Aqiq is attractive when bought below northern Riyadh replacement cost. A studio is estimated at SAR 420,000, with monthly rent around SAR 3,500 and net yield of 7.6%.
The caution is supply. A new apartment project can increase competition, while an office, transport, or lifestyle project can increase tenant demand.
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.
Which neighborhoods are becoming more attractive to renters because of recent infrastructure or transport changes in Riyadh?
The Riyadh neighborhoods becoming more attractive because of infrastructure and transport changes are Al Olaya, King Fahd, Al Sulaymaniyah, Qurtubah, Al Narjis, and Al Yasmin.
The Riyadh Metro and broader infrastructure push improve the logic of connected areas, especially where they reduce commute friction.
Al Olaya benefits most from central connectivity. A studio rents for about SAR 4,300 per month, and a 1-bedroom apartment rents for about SAR 5,700 per month.
Qurtubah, Al Narjis, and Al Yasmin benefit more from broader north and east access plus newer housing stock. Their 1-bedroom net yields are all around 7.9%.
King Fahd and Al Sulaymaniyah benefit from being established, recognizable, and easier to lease to workers who value central access.
The better opportunity is often a practical apartment in a connected but not fully premium district. Some of the infrastructure benefit is already reflected in central prices.
Which neighborhoods have become less attractive for apartment investors over the last 12 months in Riyadh?
The Riyadh neighborhoods that have become less attractive for rental-income investors over the last 12 months are Hittin, Al Malqa, and the most expensive parts of Al Olaya.
They are still desirable places to live, but purchase prices have moved faster than income logic in many cases.
The table shows the issue clearly. Hittin net yields are estimated around 6.2% to 6.5%, while several less expensive districts sit near 7.7% to 8.1%.
Al Malqa has the same pattern. Rents are strong, with 2-bedroom apartments around SAR 8,200 per month, but the estimated purchase price of SAR 1,070,000 keeps net yield at about 6.9%.
Al Olaya is more balanced, but central prestige and business access can keep prices elevated. It works better when the buyer prioritizes liquidity over maximum yield.
The recommendation is not to avoid these neighborhoods completely. They still work for lifestyle, liquidity, and high-quality tenants, but for rental yield the buyer needs a discount or unusually strong rent evidence.
Which apartment types are becoming harder to rent in Riyadh, and in which neighborhoods?
The apartment types becoming harder to rent in Riyadh are expensive 2-bedroom apartments in premium districts and poorly finished studios in weaker locations.
The problem is not the apartment type itself. The problem is price point versus tenant pool.
Premium 2-bedroom apartments in Hittin and Al Malqa can command high rents, but the tenant pool is narrower. Hittin 2-bedroom apartments are estimated at SAR 9,200 per month, while Al Malqa 2-bedroom apartments are estimated at SAR 8,200 per month.
Those units can still rent, but they need tenants who are willing to pay for space, address, finish, and convenience at the same time.
Studios are still attractive in Riyadh, especially for lower total investment. But poorly located studios in Al Arid, Al Qirawan, or older central stock can struggle if they are not furnished well or priced below better alternatives.
The most liquid apartment type is usually the 1-bedroom apartment. For a beginner Riyadh investor, the safest default is a good 1-bedroom in Al Narjis, Qurtubah, Al Yasmin, Al Sulaymaniyah, or Al Nakheel.
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INSIGHTS
These insights are drawn from the Riyadh apartment rental yield dataset, with a focus on what a foreign individual buyer should understand before buying a residential apartment to rent out.
You’ll find even more insights in our our real estate pack about Riyadh.
- Riyadh studios usually show the strongest simple income profile. The reason is straightforward: small apartments have a lower purchase ticket but can still capture strong monthly rent from single professionals and compact-household demand.
- Al Arid and Al Rabwah show the highest estimated studio net yields in the dataset, both at about 8.1%. That is attractive, but it should trigger deeper building-level checks rather than automatic buying.
- Al Narjis is one of the cleanest rent-to-price markets in Riyadh. Its 1-bedroom estimate of SAR 520,000 purchase price, SAR 4,500 monthly rent, and 7.9% net yield gives a strong balance between yield and livability.
- Al Yasmin gives a similar northern Riyadh income profile without the same price pressure as Al Malqa or Hittin. That makes it more useful for buyers who want demand plus yield.
- Qurtubah is a practical middle-ground rental market. It does not need a prestige story to work because the 1-bedroom estimate already supports a 7.9% net yield.
- Al Sulaymaniyah is more balanced than flashy. It offers central demand, moderate prices, and net yields around 7.7% to 7.9% for studios and 1-bedroom apartments.
- Al Nakheel is a stability market. It is not the cheapest Riyadh neighborhood, but its 2-bedroom net yield of about 7.2% is stronger than many premium districts.
- Hittin looks excellent for lifestyle, but weaker for pure Riyadh rental income. Its high rents are real, but the purchase price absorbs too much of the return.
- Al Malqa rents are strong, but high prices compress apartment yields. For a rental-income buyer, Al Yasmin or Al Narjis may offer a better income balance.
- Al Olaya works best when the buyer prioritizes liquidity and centrality over maximum yield. Its numbers are still respectable, but the real appeal is tenant depth.
- King Fahd has stable Riyadh demand, but less upside than newer northern districts. It is useful for cautious buyers who want familiarity and steady leasing.
- Two-bedroom apartments require more discipline than studios or 1-bedroom apartments. They earn higher rent, but the capital required often rises faster than the rent.
- Riyadh's rent freeze makes purchase price discipline more important than rent-growth hopes. Buyers should only buy when current rent already supports the price.
- The highest-yield neighborhoods can also be the highest due-diligence neighborhoods. Al Arid, Al Qirawan, Al Rabwah, and Al Murabba need careful checks on building quality, access, parking, and tenant depth.
- The safest beginner strategy is not to chase the cheapest apartment. The safer strategy is to buy a practical, well-located studio or 1-bedroom apartment where net yield, tenant depth, and resale liquidity all make sense.
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OUR METHODOLOGY TO BUILD THIS TRACKER
To estimate purchase price, monthly rent, and rental yield in different Riyadh neighborhoods, we built the dataset manually from the ground up by neighborhood and apartment type. We did not reuse a third-party yield dataset.
For each area, we researched current residential sale listings and rental listings across major Saudi real estate platforms such as Property Finder Saudi Arabia, Bayut KSA, and Wasalt.
First, we collected sale listings for each Riyadh neighborhood and apartment type. We then cleaned the sample and kept only reasonably comparable properties based on location, property type, size, condition, and listing quality.
Duplicate listings, luxury outliers, distressed assets, serviced-style offers, incomplete listings, unrealistic asking prices, and clearly non-comparable properties were removed because they would distort the estimate.
For purchase prices, we used the median price as the main reference where possible, or the average only when the sample was clean. The goal was to estimate a realistic purchase price a careful buyer might actually underwrite, not the most optimistic asking price online.
We then built the rental side of the dataset separately. For the same neighborhood and property type, we manually collected rental listings, removed outliers and non-comparable listings, and estimated a realistic monthly rent using the median rent where possible.
Purchase prices and rents were then matched by neighborhood and property type to estimate gross rental yield. The formula is simple: gross rental yield = annual rent divided by estimated purchase price.
Net rental yield was estimated after adjusting for the costs and risks that matter for each property type and neighborhood. These can include service charges, vacancy risk, maintenance, management costs, agent fees, tax friction, repairs, utilities, furnishing refresh, building costs, and other operating costs when relevant.
We did not apply one flat discount to every property. A small central apartment, a newer northern apartment, and an older unit in a less liquid area do not have the same operating cost profile, so the deduction is adjusted by neighborhood and property type.
Each estimate is assigned a confidence level based on the quality and size of the comparable listing sample. Around 30 to 40 comparable listings means higher confidence, 20 to 30 means usable but less robust, and fewer than 20 means directional only unless the comparable area is widened.
These estimates are updated regularly and should be read as structured market estimates, not guarantees of future rental income. Honesty, quality, and rigor are central to our work, and they are also what you will find in our real estate pack about Riyadh.
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