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
Riyadh's property market in January 2026 is at a turning point, with a new foreign ownership law taking effect, a five-year rent freeze reshaping yields, and a metro system that is already changing which neighborhoods matter for investors.
We constantly update this blog post to reflect the latest policy changes, price movements, and market dynamics 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.
What's the Current Real Estate Market Situation by Area in Riyadh?
Which areas in Riyadh have the highest property prices per square meter in 2026?
As of early 2026, the most expensive residential areas in Riyadh are Al Malqa, Hittin, and the Diplomatic Quarter (Al Safarat), where prices range from SAR 9,000 to SAR 16,000 per square meter depending on the property type and exact location.
This premium pricing in Riyadh reflects a combination of newer building stock, proximity to major employment centers like King Abdullah Financial District (KAFD), and strong demand from both Saudi families and well-paid expats working in corporate headquarters.
Here is what specifically drives the highest prices in each of these Riyadh neighborhoods:
- Al Malqa: modern villas and gated compounds near international schools and major highways.
- Hittin: upscale apartment towers and family compounds with walkable retail and dining options.
- Diplomatic Quarter (Al Safarat): embassy proximity, strict security, and limited supply for non-diplomatic buyers.
- Al Nakheel: established prestige area with mature landscaping and proximity to King Fahd Road.
- Al Rahmaniyah: newer developments with larger plots and family-oriented community planning.
Which areas in Riyadh have the most affordable property prices in 2026?
As of early 2026, the most affordable areas for residential property in Riyadh are Al Shifa, Al Aziziyah, Al Manakh, and Al Dar Al Baida, where prices typically range from SAR 3,200 to SAR 5,500 per square meter.
These southern and south-western Riyadh districts offer significantly lower entry prices, but buyers should expect longer commutes to the main business districts, older building stock in many cases, and a tenant base that is more price-sensitive.
The key trade-off varies by area: Al Shifa offers reasonable infrastructure but limited upside potential; Al Aziziyah has mixed building quality that requires careful inspection; Al Manakh is more industrial-adjacent and less attractive for family renters; and Al Dar Al Baida is still developing its service ecosystem, which means you are betting on future improvements.
You can also read our latest analysis regarding housing prices in Riyadh.
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 Areas in Riyadh Offer the Best Rental Yields?
Which neighborhoods in Riyadh have the highest gross rental yields in 2026?
As of early 2026, the highest gross rental yields in Riyadh are found in Ar Rimal, Qurtubah, Al Munsiyah, and Ishbiliyah, where investors can realistically expect yields between 7% and 10% for well-located apartments.
Across Riyadh as a whole, typical gross rental yields in 2026 range from about 5% in prime northern districts to 8% or more in the eastern and southern growth corridors, with the citywide average sitting around 8% to 9% according to Global Property Guide data.
Here is what drives the higher yields in each of these Riyadh neighborhoods:
- Ar Rimal: lower entry prices combined with strong tenant demand from families working in eastern Riyadh employment zones.
- Qurtubah: established residential fabric with schools and hospitals nearby, attracting stable long-term tenants.
- Al Munsiyah: expanding services and new stock at prices that still allow for healthy returns.
- Ishbiliyah: affordable apartments with good road access to central Riyadh, popular with mid-income renters.
Finally, please note that we cover the rental yields in Riyadh here.
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Which Areas in Riyadh Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Riyadh perform best on Airbnb in 2026?
As of early 2026, the best-performing Airbnb neighborhoods in Riyadh are Al Olaya, Al Wurud, Al Aqiq (near KAFD), and areas adjacent to the Diplomatic Quarter (Al Safarat), where nightly rates typically range from SAR 300 to SAR 600 depending on unit quality and location.
Top-performing short-term rentals in these Riyadh districts can generate between SAR 15,000 and SAR 25,000 in monthly revenue, though the citywide average is closer to SAR 20,000 (roughly USD 5,400) based on AirDNA data, which reflects the mix of well-optimized units and underperforming listings.
Here is what makes each of these Riyadh neighborhoods outperform for short-term rentals:
- Al Olaya: central business district with hotel spillover demand during conferences and corporate events.
- Al Wurud: walkable to offices and restaurants, attracting business travelers who prefer apartments over hotels.
- Al Aqiq (KAFD area): proximity to the Financial District draws corporate visitors and consultants on extended stays.
- Near Diplomatic Quarter: embassy visitors and international delegations often need furnished apartments for medium-term stays.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Riyadh.
Which tourist areas in Riyadh are becoming oversaturated with short-term rentals?
The Riyadh neighborhoods showing signs of short-term rental oversaturation in 2026 are dense pockets within Al Olaya, parts of Al Wurud with many similar mid-market apartments, and some newer north-central developments where multiple investors furnished units at the same time.
Citywide, AirDNA reports approximately 25,700 active short-term rental listings in Riyadh, with the highest concentration in central business district areas where competition for bookings is fierce.
The clearest sign of oversaturation in these Riyadh areas is the low average occupancy rate of around 36%, which means most listings sit empty for nearly two-thirds of the month, compressing returns for undifferentiated properties.
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 Areas in Riyadh Are Best for Long-Term Rentals?
Which neighborhoods in Riyadh have the strongest demand for long-term tenants?
The Riyadh neighborhoods with the strongest long-term rental demand in 2026 are Al Olaya, Hittin, Al Malqa, Qurtubah, and Ar Rimal, where well-priced units typically rent within two to four weeks of listing.
Vacancy rates in these high-demand Riyadh districts tend to stay between 3% and 6%, significantly tighter than the citywide average, which reflects the concentration of jobs, schools, and services that attract stable tenants.
Here is the typical tenant profile driving demand in each of these Riyadh neighborhoods:
- Al Olaya: corporate professionals and mid-level executives who prioritize short commutes to central offices.
- Hittin: higher-income Saudi families and senior expats seeking modern compounds with good schools nearby.
- Al Malqa: families with children attending international schools in the northern corridor.
- Qurtubah: middle-class Saudi and expat families looking for value with good access to hospitals and universities.
- Ar Rimal: younger families and single professionals working in eastern Riyadh industrial and logistics zones.
What makes these neighborhoods attractive to long-term tenants is the combination of metro accessibility (especially along the Blue and Red lines), proximity to employment clusters, and established retail and healthcare infrastructure that reduces daily friction.
Finally, please note that we provide a very granular rental analysis in our property pack about Riyadh.
What are the average long-term monthly rents by neighborhood in Riyadh in 2026?
As of early 2026, average monthly rents in Riyadh range from about SAR 3,000 for a basic apartment in the south to SAR 30,000 or more for a premium villa in the northern districts, with most mid-market apartments falling between SAR 5,000 and SAR 9,000 per month.
In the most affordable Riyadh neighborhoods like Al Shifa and Al Aziziyah, a standard one or two-bedroom apartment typically rents for SAR 3,000 to SAR 5,500 per month, making these areas accessible for budget-conscious renters and attractive for investors targeting volume over prestige.
In average-priced Riyadh neighborhoods like Qurtubah, Al Munsiyah, and Ishbiliyah, mid-range apartments rent for SAR 4,800 to SAR 8,500 per month, offering a balance between affordability and livability that appeals to most working families.
In the most expensive Riyadh neighborhoods like Hittin, Al Malqa, and the Diplomatic Quarter, high-end apartments command SAR 6,500 to SAR 11,000 per month, while family villas and compounds range from SAR 16,000 to SAR 30,000 per month depending on size and amenities.
You may want to check our latest analysis about the rents in Riyadh here.
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Which Are the Up-and-Coming Areas to Invest in Riyadh?
Which neighborhoods in Riyadh are gentrifying and attracting new investors in 2026?
As of early 2026, the Riyadh neighborhoods seeing the most investor interest and gentrification dynamics are Ar Rimal, Al Janadriyah, Al Narjis, and parts of Al Qirawan, where new developments are transforming previously peripheral areas into sought-after residential zones.
These gentrifying Riyadh districts have experienced annual price appreciation of roughly 8% to 12% over the past two years, outpacing the citywide average as new infrastructure and services draw families who previously would have looked only at established northern neighborhoods.
Which areas in Riyadh have major infrastructure projects planned that will boost prices?
The Riyadh areas most likely to see infrastructure-driven price increases are those along the new metro corridors, near the Diriyah Gate development, and in the path of the planned Metro Line 7 connecting Diriyah to Qiddiya.
The specific projects reshaping these Riyadh areas include the fully operational Riyadh Metro (six lines, 85 stations, 176 kilometers), the SAR 64 billion Diriyah Gate cultural and tourism destination, and the upcoming Line 7 extension that will link major giga-projects by 2030.
Historically, Riyadh neighborhoods that gain metro access see property values increase by 15% to 25% within two to three years of station opening, and areas adjacent to major giga-projects like Diriyah have already seen land prices rise 30% to 40% since early 2023 according to market reports.
You'll find our latest property market analysis about Riyadh here.
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 in Riyadh Should I Avoid as a Property Investor?
Which neighborhoods in Riyadh with lots of problems should I avoid and why?
For a foreign investor buying residential property in Riyadh in 2026, the neighborhoods that require the most caution are Al Manakh, Al Dar Al Baida, parts of Al Aziziyah with older stock, and certain pockets of Al Shifa where building quality varies block by block.
Here are the specific problems affecting each of these Riyadh neighborhoods:
- Al Manakh: industrial-adjacent location makes it difficult to attract family tenants and limits resale options.
- Al Dar Al Baida: still-developing service infrastructure means you are betting on improvements that may take years.
- Parts of Al Aziziyah: significant variance in building maintenance and unclear HOA structures in some compounds.
- Pockets of Al Shifa: price-sensitive tenant base leads to higher turnover and more demanding property management.
For these Riyadh neighborhoods to become viable investment options, they would need significant improvements in public transportation access (especially metro extensions), new commercial development to create local employment, and consistent enforcement of building standards to reduce the quality variance that currently exists.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Riyadh.
Which areas in Riyadh have stagnant or declining property prices as of 2026?
As of early 2026, Riyadh is not experiencing broad price declines, but certain areas are showing price stagnation, including older apartment stock in parts of the city center, some southern districts with weak demand fundamentals, and overpriced units where sellers anchored to 2024-2025 peak expectations.
In these stagnating Riyadh pockets, prices have remained flat or declined by 2% to 5% over the past year, while the rest of the city continued to see moderate appreciation of 6% to 8% according to GASTAT data.
Here is what is causing stagnation in specific Riyadh areas:
- Older central apartments: new competing supply in better-connected locations is pulling tenants away.
- Southern fringe districts: limited infrastructure investment and weak employment proximity reduce buyer interest.
- Overpriced new builds: developers who priced at peak 2024 levels are finding buyers unwilling to meet asking prices.
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Which Areas in Riyadh Have the Best Long-Term Appreciation Potential?
Which areas in Riyadh have historically appreciated the most recently?
The Riyadh areas that have shown the strongest price appreciation over the past five years are the northern premium districts (Hittin, Al Malqa, Al Rahmaniyah), the eastern growth belt (Ar Rimal, Qurtubah), and neighborhoods near the Diriyah giga-project development zone.
Here is the approximate appreciation each area has achieved:
- Hittin and Al Malqa: roughly 50% to 60% total appreciation since 2020, driven by sustained high-income demand.
- Ar Rimal: approximately 40% to 50% appreciation as infrastructure improved and supply met growing family demand.
- Diriyah-adjacent areas: land and property values up 30% to 40% since early 2023 alone due to giga-project proximity.
- Al Yarmouk (metro-adjacent): villa values near metro stations jumped 78% between Q2 2023 and Q2 2025.
The main driver of above-average appreciation in these Riyadh areas has been the combination of Vision 2030 corporate relocations creating high-income housing demand, metro connectivity improvements reducing commute times, and limited supply of quality stock in established neighborhoods.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Riyadh.
Which neighborhoods in Riyadh are expected to see price growth in coming years?
The Riyadh neighborhoods expected to see the strongest price growth over the next three to five years are Ar Rimal, Al Janadriyah, metro-adjacent pockets in central districts, and areas benefiting from the Diriyah and future Line 7 corridor.
Here are the projected growth dynamics for each:
- Ar Rimal: expected 6% to 9% annual growth as it matures from "emerging" to "established" status.
- Al Janadriyah: projected 7% to 10% annual appreciation driven by villa demand and limited competing supply.
- Central metro-adjacent areas: likely 5% to 8% annual growth as transit-oriented living becomes more valued.
- Diriyah corridor: potential for 8% to 12% annual gains as giga-project milestones are completed.
The single most important catalyst for future price growth in these Riyadh neighborhoods is the continued execution of Vision 2030 projects, which is creating jobs, attracting international companies, and fundamentally reshaping which parts of the city have long-term value.
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 Do Locals and Expats Really Think About Different Areas in Riyadh?
Which areas in Riyadh do local residents consider the most desirable to live?
Local Saudi residents consistently rank Hittin, Al Malqa, Al Rahmaniyah, Al Nakheel, Al Yasmin, and Al Narjis as the most desirable Riyadh neighborhoods for family living.
Here is what makes each of these areas appealing to Riyadh locals:
- Hittin: modern compounds with family amenities, walkable retail, and proximity to King Fahd Road.
- Al Malqa: prestigious address with excellent international schools and newer villa stock.
- Al Rahmaniyah: larger plots and a quieter atmosphere while still being close to northern employment centers.
- Al Nakheel: mature landscaping and established prestige among Saudi professionals.
- Al Yasmin: family-friendly planning with parks and good access to the northern highway network.
- Al Narjis: rapidly developing with modern projects at slightly lower prices than the ultra-premium areas.
These locally-preferred Riyadh neighborhoods are typically home to upper-middle-class and wealthy Saudi families, often with multiple generations living nearby, as well as senior expat executives who can afford the premium pricing.
Local preferences in Riyadh generally align with what foreign investors should target, though locals often place more value on community reputation and family networks, while investors should focus more on rental yield potential and liquidity for eventual exit.
Which neighborhoods in Riyadh have the best reputation among expat communities?
The Riyadh neighborhoods with the strongest reputation among expat communities are the Diplomatic Quarter (Al Safarat), Al Olaya, As Sulaymaniyah, Al Wurud, and Al Aqiq near KAFD.
Here is what draws expats to each of these Riyadh neighborhoods:
- Diplomatic Quarter: embassy proximity, international community, enhanced security, and familiar services.
- Al Olaya: central location with walkable restaurants, offices, and easy access to everything.
- As Sulaymaniyah: established expat presence, good schools, and reasonable rents for the location.
- Al Wurud: quieter than Al Olaya but still central, with family-friendly compounds.
- Al Aqiq (near KAFD): modern apartments popular with finance professionals working at the Financial District.
The typical expat profile in these Riyadh neighborhoods includes corporate professionals on company packages, consultants on medium-term assignments, diplomatic staff and their families, and entrepreneurs establishing Saudi operations under Vision 2030 incentives.
Which areas in Riyadh do locals say are overhyped by foreign buyers?
The Riyadh areas that locals most often describe as overhyped by foreign buyers are certain pockets of Al Olaya, some generic northern developments traded on nameplate alone, and newly launched projects that charge premium prices without premium substance.
Here is what locals see as the problem in each case:
- Parts of Al Olaya: older apartments trading at "prime" prices despite aging infrastructure and dated finishes.
- Generic north developments: investors pay for a prestigious district name but ignore micro-location factors like road noise or poor access.
- Newly launched projects: off-plan pricing reflects developer optimism rather than current market fundamentals.
Foreign buyers are often attracted to these Riyadh areas because they recognize the neighborhood names from marketing materials, prioritize "prime address" over actual livability, or rely on agents who benefit from selling higher-priced inventory regardless of value.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Riyadh.
Which areas in Riyadh are considered boring or undesirable by residents?
The Riyadh areas most commonly described as boring or undesirable by residents are the deep southern industrial-adjacent districts, some far eastern developments with limited services, and older central neighborhoods that lack modern amenities.
Here is why residents find each of these areas unappealing:
- Deep south districts (Al Manakh, parts of Al Dar Al Baida): limited dining, retail, and entertainment options combined with long commutes.
- Far eastern developments: still waiting for schools, clinics, and commercial centers to catch up with residential construction.
- Older central areas: dated building stock, parking problems, and lack of green space compared to newer northern developments.
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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) | Official Saudi regulator for real estate and foreign ownership rules. | We used it to explain the January 2026 foreign ownership framework. We also referenced it for compliance and registration requirements. |
| Cavendish Maxwell | Major regional real estate consultancy with detailed price benchmarks. | We anchored our price-per-sqm estimates on their H1 2025 Riyadh data. We used their rent growth figures to project early 2026 levels. |
| JLL KSA Living Market Dynamics | Global property consultancy with district-level transaction data. | We identified high-liquidity districts like Ar Rimal using their Q3 2025 report. We used their data to assess where buyers are actually transacting. |
| Reuters | Top-tier news agency with verified reporting on Saudi policy. | We used their rent freeze coverage to explain yield dynamics in 2026. We also referenced their foreign ownership confirmation. |
| Global Property Guide | Independent property research with consistent yield methodology. | We anchored gross yield estimates on their 8.89% Riyadh average. We used their price history to contextualize recent appreciation. |
| AirDNA | Widely-used short-term rental data provider with occupancy metrics. | We used their Riyadh snapshot for STR occupancy and revenue benchmarks. We assessed oversaturation risk using their listing count data. |
| Royal Commission for Riyadh City (RCRC) | Official city authority managing metro and infrastructure projects. | We referenced their metro launch announcements for connectivity analysis. We used their data to identify which corridors are gaining value. |
| General Authority for Statistics (GASTAT) | Saudi government statistics agency with official price indices. | We used their Real Estate Price Index to validate price trends. We referenced their data to identify areas showing stagnation. |
| Diriyah Gate Development Authority | Official authority for the SAR 64 billion Diriyah giga-project. | We used their project updates to explain infrastructure-driven price effects. We referenced their timeline for assessing adjacent property values. |
| Ministry of Tourism | Official licensing authority for tourism accommodation in Saudi. | We used their regulations to frame STR as a compliance question. We highlighted licensing requirements for Airbnb investors. |
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