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
If you are a foreigner thinking about buying an apartment in Riyadh, you are probably wondering what rental yields you can realistically expect.
This guide gives you honest numbers based on the latest data, so you can make an informed decision without the marketing fluff.
We constantly update this blog post to reflect market changes, including the five-year rent freeze introduced in September 2025.
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.
What rental yields can I realistically get from an apartment in Riyadh?
What's the average gross rental yield for apartments in Riyadh as of 2026?
As of early 2026, the average gross rental yield for apartments in Riyadh sits around 6% to 7%, though some sources report figures as high as 8% to 9% for well-located properties.
The realistic range that covers most apartment investments in Riyadh is between 5% and 9%, with smaller units like studios often delivering higher percentages and larger family apartments falling toward the middle of that range.
The main factor driving this variation in Riyadh is actually the rent freeze introduced in September 2025, which locked in existing rent levels for five years, meaning that new purchases at higher prices will automatically see compressed yields compared to properties bought earlier.
Compared to other major cities in the Gulf region, Riyadh apartments still deliver strong returns, as Dubai typically offers 5% to 7% and Abu Dhabi around 6% to 8%, making the Saudi capital competitive for yield-focused investors.
What's the average net rental yield for apartments in Riyadh as of 2026?
As of early 2026, the average net rental yield for apartments in Riyadh is around 4% to 5% after accounting for all typical ownership costs.
The realistic range for net yields that most apartment investors can expect in Riyadh falls between 3.5% and 5.5%, depending heavily on whether you self-manage or use a property management company.
The single biggest expense that reduces gross yield to net yield in Riyadh is building service charges combined with property management fees, which together can consume 15% to 20% of your annual rent, especially in newer tower developments with amenities like pools, gyms, and concierge services.
By the way, you will find much more detailed data in our property pack covering the real estate market in Riyadh.
What's the typical rent-to-price ratio for apartments in Riyadh in 2026?
As of early 2026, the typical rent-to-price ratio for apartments in Riyadh is around 6%, meaning it takes roughly 16 to 17 years of rent to match the purchase price.
The realistic range of rent-to-price ratios that covers most apartment transactions in Riyadh falls between 5% and 9%, with prime North Riyadh areas toward the lower end and emerging eastern districts toward the higher end.
Apartments in neighborhoods like Ar Rimal, Al Qadisiyah, and Tuwaiq tend to have the highest rent-to-price ratios because purchase prices remain more accessible while rents have caught up with demand from Vision 2030 workforce growth.
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How much rent can I charge for an apartment in Riyadh?
What's the typical tenant budget range for apartments in Riyadh right now?
The typical monthly tenant budget for renting an apartment in Riyadh ranges from SAR 2,000 to SAR 7,000 (approximately USD 530 to USD 1,870, or EUR 490 to EUR 1,730), covering most of the mainstream rental demand.
For tenants targeting mid-range apartments in Riyadh, expect budget ranges of SAR 3,500 to SAR 5,500 per month (around USD 930 to USD 1,470, or EUR 860 to EUR 1,360), which typically gets you a decent 2-bedroom in established neighborhoods like Al Sahafa or Al Yasmin.
For tenants seeking high-end or luxury apartments in Riyadh, budgets start at SAR 6,500 and can exceed SAR 12,000 per month (USD 1,730 to USD 3,200+, or EUR 1,600 to EUR 2,960+), particularly in premium towers in Al Malqa, Hittin, or near the King Abdullah Financial District.
We have a blog article where we update the latest data about rents in Riyadh here.
What's the average monthly rent for a 1-bed apartment in Riyadh as of 2026?
As of early 2026, the average monthly rent for a 1-bed apartment in Riyadh is around SAR 2,700 to SAR 3,500 (approximately USD 720 to USD 930, or EUR 665 to EUR 860).
For entry-level 1-bed apartments in Riyadh, expect to pay SAR 2,000 to SAR 2,500 per month (USD 530 to USD 670, or EUR 490 to EUR 620), which typically gets you an older building in areas like Al Malaz or southern districts with basic finishes and no major amenities.
For a typical mid-range 1-bed apartment in Riyadh, rents fall between SAR 2,800 and SAR 4,000 per month (USD 750 to USD 1,070, or EUR 690 to EUR 990), usually in newer buildings in Al Narjis, Al Sahafa, or Al Yasmin with decent kitchens and parking.
For luxury 1-bed apartments in Riyadh, expect SAR 5,000 to SAR 8,000+ per month (USD 1,330 to USD 2,130+, or EUR 1,230 to EUR 1,970+), found in premium towers in Al Malqa or Hittin with high-end finishes, gyms, pools, and concierge services.
What's the average monthly rent for a 2-bed apartment in Riyadh as of 2026?
As of early 2026, the average monthly rent for a 2-bed apartment in Riyadh is around SAR 4,600 to SAR 5,500 (approximately USD 1,230 to USD 1,470, or EUR 1,135 to EUR 1,360).
For entry-level 2-bed apartments in Riyadh, expect to pay SAR 3,000 to SAR 4,000 per month (USD 800 to USD 1,070, or EUR 740 to EUR 990), typically in older stock in central or southern areas with functional but dated interiors.
For a typical mid-range 2-bed apartment in Riyadh, rents fall between SAR 4,500 and SAR 6,000 per month (USD 1,200 to USD 1,600, or EUR 1,110 to EUR 1,480), usually in well-maintained buildings in popular areas like Al Sahafa, Al Qirawan, or Al Narjis with good road access.
For luxury 2-bed apartments in Riyadh, expect SAR 7,000 to SAR 12,000+ per month (USD 1,870 to USD 3,200+, or EUR 1,730 to EUR 2,960+), found in premium developments in Al Malqa, Hittin, or near KAFD with full amenity packages and modern smart-home features.
What's the average monthly rent for a 3-bed apartment in Riyadh as of 2026?
As of early 2026, the average monthly rent for a 3-bed apartment in Riyadh is around SAR 5,900 to SAR 7,000 (approximately USD 1,570 to USD 1,870, or EUR 1,455 to EUR 1,730).
For entry-level 3-bed apartments in Riyadh, expect to pay SAR 4,500 to SAR 5,500 per month (USD 1,200 to USD 1,470, or EUR 1,110 to EUR 1,360), typically in older buildings in areas like Al Malaz, Ar Rimal, or southern Riyadh with basic amenities.
For a typical mid-range 3-bed apartment in Riyadh, rents fall between SAR 6,000 and SAR 8,000 per month (USD 1,600 to USD 2,130, or EUR 1,480 to EUR 1,970), usually in family-friendly buildings in Al Yasmin, Al Narjis, or Al Qadisiyah with parking and decent common areas.
For luxury 3-bed apartments in Riyadh, expect SAR 9,000 to SAR 15,000+ per month (USD 2,400 to USD 4,000+, or EUR 2,220 to EUR 3,700+), found in gated compounds or high-end towers in Al Malqa, Hittin, or the Diplomatic Quarter with premium finishes and full amenity access.
How fast do well-priced apartments get rented in Riyadh?
A well-priced apartment in a high-demand area of Riyadh typically rents out in 2 to 4 weeks, while properties in less popular locations or with above-market pricing can take 6 to 8 weeks.
The typical vacancy rate for apartments in Riyadh as of early 2026 is around 5% to 7% citywide, dropping to 3% to 4% in prime North Riyadh neighborhoods like Hittin and Al Malqa where demand significantly outpaces supply.
The main factors that cause some apartments to rent faster in Riyadh are proximity to the Riyadh Metro lines (which became operational recently), easy access to major employers relocating under the Regional Headquarters Program, and whether the building is registered properly on the Ejar platform, which is now mandatory for all rental contracts.
And if you want to know what should be the right price, check our latest update on how much an apartment should cost 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.
Which apartment type gives the best yield in Riyadh?
Which is better for yield between studios, 1-bed, 2-bed and 3-bed apartments in Riyadh as of 2026?
As of early 2026, 3-bedroom apartments typically offer the best rental yield in Riyadh, followed closely by 2-bedroom units, which goes against the common assumption in many Western markets where smaller units usually win on yield.
The typical gross rental yield range for each apartment type in Riyadh is roughly: studios at 5% to 7%, 1-bedroom at 5% to 6%, 2-bedroom at 6% to 7%, and 3-bedroom at 7% to 8%, based on current rent-to-price ratios.
The main reason larger apartments outperform in Riyadh is that strong family demand from both Saudi nationals and expatriates keeps rental prices firm for 2- and 3-bedroom units, while investor competition for smaller units has pushed purchase prices up faster than rents can follow.
Which features are best if you want a good yield for your apartment in Riyadh?
The top features that most positively impact rental yield for apartments in Riyadh are efficient air conditioning systems, dedicated parking spaces, and proximity to major road networks like King Fahd Road or Airport Road, because Riyadh's extreme summer heat and car-dependent layout make these non-negotiable for most tenants.
Mid-floor apartments (floors 3 to 8) tend to rent out fastest in Riyadh because they balance elevator access, privacy, and easier evacuation compared to ground floors (which feel less secure) or very high floors (which can have lift wait issues in busy towers).
Apartments with balconies or outdoor terraces do command slightly higher rents in Riyadh, particularly in family buildings, but the premium is modest (around 5% to 10%) because outdoor space is less usable during the hot months from May to September.
Building features like gyms, pools, and on-site security do justify higher service charges in Riyadh if you target expat professionals, who often expect these amenities as standard, but be aware that service charges in amenity-heavy towers can reach 12% to 15% of annual rent.
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Which neighborhoods give the best rental demand for apartments in Riyadh?
Which neighborhoods have the highest rental demand for apartments in Riyadh as of 2026?
As of early 2026, the neighborhoods with the highest rental demand for apartments in Riyadh are Al Malqa, Hittin, Al Sahafa, Al Yasmin, Al Narjis in North Riyadh, along with Al Olaya and As Sulaymaniyah in the central business corridor.
The main demand driver making these Riyadh neighborhoods attractive is proximity to the King Abdullah Financial District (KAFD) and the concentration of multinational companies that relocated their regional headquarters under Saudi Arabia's RHQ program, which has brought thousands of well-paid professionals seeking quality housing.
The typical vacancy rate in these high-demand neighborhoods is around 3% to 4%, and well-priced apartments usually rent within 2 to 3 weeks, often with multiple applicants competing for the same unit.
One emerging neighborhood gaining rental demand momentum in Riyadh is Al Narjis, which sits between established North Riyadh areas and the city's northern expansion zone, offering newer buildings at lower prices while remaining close to major employers and the new metro lines.
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 highest yields for apartments in Riyadh as of 2026?
As of early 2026, the neighborhoods with the highest rental yields for apartments in Riyadh are Ar Rimal, Al Qadisiyah, Al Munsiyah in East Riyadh, and Tuwaiq in West Riyadh, where purchase prices remain lower relative to achievable rents.
The typical gross rental yield range in these top-yielding Riyadh neighborhoods is 7% to 9%, compared to 5% to 6% in prime North Riyadh areas where higher purchase prices compress returns.
The main reason these neighborhoods offer higher yields is that they attract working-class and middle-income tenants willing to pay solid rents while property prices have not yet caught up with the speculation-driven increases seen in North Riyadh, creating a favorable rent-to-price ratio for yield-focused investors.
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.
Should I do long-term rental or short-term rental in Riyadh?
Is short-term rental legal for apartments in Riyadh as of 2026?
As of early 2026, short-term rental is legal for apartments in Riyadh, but it requires registration with the Ministry of Tourism as a private hospitality facility, making it a regulated hospitality activity rather than a simple sublet.
The main legal requirements for operating a short-term rental apartment in Riyadh include obtaining a permit that starts with the number "50" (an 8-digit license), registering the property through the Ministry of Tourism's online portal, paying annual registration fees, and complying with fire safety requirements including extinguishers and smoke detectors.
For Airbnb-style rentals in Riyadh, individual owners can register up to 8 units, but if you want to manage more, you must establish a company and obtain a tourist accommodation management service provider license, and importantly, hosting permits are currently restricted to Saudi nationals only, meaning foreign investors must partner with a Saudi license holder.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Riyadh.
What's the gross yield difference short-term vs long-term in Riyadh in 2026?
As of early 2026, short-term rentals in Riyadh can deliver gross yields of 8% to 12% when well-managed, compared to 5% to 7% for long-term rentals, representing a potential gross yield premium of 2 to 5 percentage points.
The typical gross yield range for short-term rentals in Riyadh is 7% to 11% at moderate occupancy, while long-term rentals reliably deliver 5% to 7% with minimal management intensity.
The main additional costs that reduce the net yield advantage of short-term rentals in Riyadh include cleaning fees between guests (SAR 150 to SAR 300 per turnover), platform commissions (3% to 15% depending on the site), furnishing and maintenance wear, utilities that you pay instead of the tenant, and potentially higher management fees of 15% to 25% of revenue.
To outperform a long-term rental in Riyadh, a short-term rental typically needs to achieve at least 50% to 55% annual occupancy at market rates, which is achievable during peak seasons like Riyadh Season but challenging during summer months when tourism drops significantly.
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What costs will eat into my net yield for an apartment in Riyadh?
What are building service charges as a % of rent in Riyadh as of 2026?
As of early 2026, typical building service charges for apartments in Riyadh run around 6% to 10% of annual rent, or roughly SAR 3,000 to SAR 8,000 per year (USD 800 to USD 2,130, or EUR 740 to EUR 1,970) for a standard apartment.
The realistic range of building service charges in Riyadh covers 5% to 15% of annual rent, with basic buildings at the low end and premium towers with extensive amenities at the high end, potentially reaching SAR 12,000 to SAR 18,000 per year (USD 3,200 to USD 4,800, or EUR 2,960 to EUR 4,440).
The services that justify higher-than-average charges in Riyadh are typically 24-hour security with CCTV monitoring, swimming pools that require significant water and maintenance in the desert climate, gym facilities, landscaped gardens with irrigation, and professional on-site building management rather than basic caretaking.
What annual maintenance budget should I assume for an apartment in Riyadh right now?
A typical annual maintenance budget for an apartment in Riyadh should be around 1% to 2% of the property value, which translates to roughly SAR 8,000 to SAR 20,000 per year (USD 2,130 to USD 5,330, or EUR 1,970 to EUR 4,930) for a mid-range property.
The realistic range of annual maintenance costs depends heavily on apartment age: newer buildings (under 5 years) might only need SAR 5,000 to SAR 10,000 (USD 1,330 to USD 2,670, or EUR 1,230 to EUR 2,470), while older stock can require SAR 15,000 to SAR 30,000+ (USD 4,000 to USD 8,000+, or EUR 3,700 to EUR 7,400+) annually.
The most common maintenance expenses apartment owners face in Riyadh are air conditioning servicing and repairs (critical given 45°C+ summer temperatures), water heater replacements, plumbing issues from hard water deposits, and paint touch-ups from sandstorm damage, all of which are more frequent than in milder climates.
What property taxes should I expect for an apartment in Riyadh as of 2026?
As of early 2026, there is no recurring annual property tax for apartments in Riyadh, which is a major advantage compared to most Western markets where annual property taxes can consume 1% to 2% of property value.
The main property-related tax in Riyadh is the Real Estate Transaction Tax (RETT) at 5% of the property value, which is a one-time cost paid at purchase or sale rather than an annual recurring expense.
Property taxes in Saudi Arabia are primarily transaction-based rather than ownership-based, meaning you pay when you buy or sell but not simply for holding the property, though vacant land in urban areas may be subject to "white land" taxes to encourage development.
There are no standard property tax exemptions for apartment owners in Riyadh because there is no annual property tax to be exempted from, but first-time Saudi homebuyers may receive RETT exemptions on primary residences up to certain value thresholds.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Riyadh.
How much does landlord insurance cost for an apartment in Riyadh in 2026?
As of early 2026, typical annual landlord insurance for an apartment in Riyadh costs around SAR 1,000 to SAR 3,500 per year (approximately USD 270 to USD 930, or EUR 250 to EUR 860) for standard building and contents coverage.
The realistic range of annual landlord insurance costs extends from SAR 800 for basic coverage on a modest apartment to SAR 5,000+ (USD 210 to USD 1,330+, or EUR 195 to EUR 1,230+) for comprehensive policies on furnished luxury units with higher liability limits.
What's the typical property management fee for apartments in Riyadh as of 2026?
As of early 2026, the typical property management fee for apartments in Riyadh is around 6% to 10% of collected rent for long-term rentals, which on a SAR 5,000/month apartment translates to roughly SAR 300 to SAR 500 per month (USD 80 to USD 133, or EUR 74 to EUR 123).
The realistic range of property management fees in Riyadh extends from 5% for basic tenant-finding and rent-collection services to 12% to 15% for full-service management including maintenance coordination, and short-term rental management typically costs 15% to 25% of revenue due to higher operational intensity.
Services typically included in standard property management fees in Riyadh are tenant sourcing and screening, lease preparation and Ejar platform registration (which is now mandatory), rent collection and remittance, and basic maintenance coordination, though major repairs and legal issues usually incur additional charges.
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.
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 |
|---|---|---|
| Global Property Guide | Long-running international housing data publisher with clear yield methodology. | We used it as our base dataset for Riyadh apartment gross yields by unit size. We also used its guidance that net yields are typically 1.5 to 2 percentage points below gross to structure our net yield estimates. |
| Knight Frank Saudi Arabia | Global real estate consultancy with established research practice in the Gulf region. | We used it to anchor Riyadh apartment prices per square meter. We used this to sanity-check the price side of rent-to-price ratios. |
| JLL MENA KSA Living | Top-tier global brokerage with formal research output on Saudi residential markets. | We used it to identify where apartment transactions concentrate in Riyadh as a demand proxy. We also used it to cross-check that apartments are a large share of residential activity. |
| Cavendish Maxwell | Regional property consultancy with detailed quarterly market reports on Saudi Arabia. | We used their Q3 2025 report for rental rate changes and vacancy data. We also used their price-per-sqm figures to validate yield calculations. |
| GASTAT Real Estate Price Index | Saudi Arabia's official statistics agency and primary source for national real estate indices. | We used it to frame market context with official price statistics. We use it as a cross-check against private sector pricing narratives. |
| ZATCA Real Estate Transaction Tax | Saudi tax authority and primary source for RETT rules and rates. | We used it to model one-off purchase friction at 5% and explain why property tax in Saudi Arabia is mostly transactional rather than annual. |
| Al Arabiya / Reuters Rent Freeze Coverage | Major news sources reporting policy changes with attribution to official announcements. | We used it to explain why early 2026 rent expectations should be more conservative than mid-2025. We use it for policy context, not for base rent numbers. |
| Ministry of Tourism Private Hospitality Regulations | Direct regulation document from the relevant Saudi ministry governing short-term rentals. | We used it to answer whether short-term rental is legal and what licensing concept applies. We use it as the primary legality source for STR analysis. |
| AirDNA Riyadh Overview | Well-known short-term rental analytics provider with standardized metrics. | We used it for order-of-magnitude STR assumptions on average daily rates and occupancy. We computed yields ourselves from those inputs and cross-checked with official hospitality stats. |
| MoMRAH Jointly-Owned Property Regulations | Official legal text governing jointly-owned buildings and owner associations in Saudi Arabia. | We used it to justify that building-level fees and common-area maintenance are a formal, expected part of apartment ownership. We translated that into practical net yield deductions. |
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