Authored by the expert who managed and guided the team behind the Saudi Arabia Property Pack
Everything you need to know before buying real estate is included in our Saudi Arabia Property Pack
If you're looking to rent or invest in rental property in Saudi Arabia, understanding the current market is essential.
This blog post breaks down the latest rent prices, neighborhood trends, and tenant preferences across the Kingdom's major cities.
We keep this article updated regularly so you always have access to fresh, reliable data.
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 Saudi Arabia.
Insights
- Riyadh's 5-year rent freeze, introduced in late 2025, has capped rent increases at 0-2% annually, making it one of the few regulated rental markets in the Gulf region.
- A typical 1-bedroom apartment in Saudi Arabia costs around SAR 3,500 per month in 2026, which is roughly $930 USD or €875 EUR at current exchange rates.
- Jeddah apartment rents are growing at 3-6% year-over-year in 2026, outpacing Riyadh due to the absence of rent controls in the coastal city.
- North Riyadh neighborhoods like Al Malqa and Hittin command the highest rents in the Kingdom, often 40-50% above city averages.
- Vacancy rates in Saudi Arabia's major cities remain tight at 5-11%, signaling strong demand that drove the government to intervene in Riyadh's rental market.
- Expats and young Saudi professionals now make up the largest tenant segments, with demand concentrated in apartments rather than traditional villas.
- Furnished apartments in Saudi Arabia typically rent for 15-25% more than unfurnished units, with expats and project staff driving most of this premium demand.
- Well-priced rentals in Riyadh typically find tenants within 20-35 days, compared to 30-45 days in Jeddah and 25-40 days in the Eastern Province.
- Air conditioning quality is the single most important amenity affecting Saudi rental prices, as summer temperatures regularly exceed 45°C across the Kingdom.
What are typical rents in Saudi Arabia as of 2026?
What's the average monthly rent for a studio in Saudi Arabia as of 2026?
As of January 2026, the typical monthly rent for a studio apartment in Saudi Arabia is around SAR 2,600, which equals approximately $690 USD or €650 EUR.
The realistic range for studio rents across major Saudi cities spans from SAR 1,700 to SAR 3,800 per month (around $450-$1,010 USD or €425-€950 EUR), depending on which city and neighborhood you choose.
Studio rents in Saudi Arabia vary based on city (Riyadh is most expensive, followed by Jeddah, then the Eastern Province), neighborhood prestige, building age, and whether the unit includes quality air conditioning and parking.
What's the average monthly rent for a 1-bedroom in Saudi Arabia as of 2026?
As of January 2026, the typical monthly rent for a 1-bedroom apartment in Saudi Arabia is around SAR 3,500, which equals approximately $930 USD or €875 EUR.
The realistic range for 1-bedroom rents spans from SAR 2,400 to SAR 4,800 per month (around $640-$1,280 USD or €600-€1,200 EUR), covering most standard apartments in major Saudi cities.
In Saudi Arabia, 1-bedroom apartments in the Eastern Province (Khobar, Dammam) tend to be the most affordable, while North Riyadh neighborhoods like Al Malqa, Hittin, and Al Olaya command the highest prices in the Kingdom.
What's the average monthly rent for a 2-bedroom in Saudi Arabia as of 2026?
As of January 2026, the typical monthly rent for a 2-bedroom apartment in Saudi Arabia is around SAR 5,000, which equals approximately $1,330 USD or €1,250 EUR.
The realistic range for 2-bedroom rents spans from SAR 3,400 to SAR 6,800 per month (around $900-$1,810 USD or €850-€1,700 EUR), depending on city and building quality.
In Saudi Arabia, 2-bedroom apartments are most affordable in Dammam and smaller Eastern Province cities, while premium North Riyadh districts like Al Nakheel and Hittin, plus Jeddah's coastal Al Shati area, have the highest 2-bedroom rents.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Saudi Arabia.
What's the average rent per square meter in Saudi Arabia as of 2026?
As of January 2026, the typical rent per square meter for apartments in Saudi Arabia ranges from SAR 40 to SAR 60 per month, which equals approximately $11-$16 USD or €10-€15 EUR per square meter monthly.
The realistic range across different Saudi neighborhoods spans from SAR 32 to SAR 75 per square meter per month (around $8.50-$20 USD or €8-€19 EUR), with Riyadh at the high end and the Eastern Province at the low end.
Compared to other Gulf cities, Saudi Arabia's rent per square meter remains more affordable than Dubai or Abu Dhabi, though Riyadh's premium neighborhoods are closing this gap quickly.
Properties in Saudi Arabia that command above-average rent per square meter typically feature modern AC systems, dedicated parking, security services, and proximity to major employment centers or lifestyle destinations.
How much have rents changed year-over-year in Saudi Arabia in 2026?
As of January 2026, year-over-year rent changes in Saudi Arabia vary significantly by city: Riyadh shows just 0-2% growth due to the rent freeze, while Jeddah apartments have increased 3-6% and the Eastern Province has seen 2-4% growth.
The main factors driving these rent changes include strong job creation from Vision 2030 projects, population inflows to major cities, and government intervention in Riyadh to address affordability concerns.
This year's rent growth in Saudi Arabia is notably different from 2024-2025, when Riyadh saw double-digit increases (over 10% annually) before the government stepped in with the rent freeze policy in late 2025.
What's the outlook for rent growth in Saudi Arabia in 2026?
As of January 2026, projected rent growth in Saudi Arabia is expected to be near-flat in Riyadh (0-2%) due to the rent freeze, while Jeddah and the Eastern Province may see moderate growth of 3-5%.
The key factors likely to influence Saudi rent growth include continued job creation from giga-projects, population migration to major cities, and how quickly new housing supply can come online to meet demand.
In Saudi Arabia, neighborhoods in Jeddah's north (Al Shati, Al Zahra) and areas around Eastern Province employment hubs are expected to see the strongest rent growth, as they lack the regulatory caps now in place in Riyadh.
The main uncertainties that could change Saudi Arabia's rent outlook include oil price fluctuations affecting project timelines, the pace of new housing construction, and whether the government extends rent controls beyond Riyadh.
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 rent best in Saudi Arabia as of 2026?
Which neighborhoods have the highest rents in Saudi Arabia as of 2026?
As of January 2026, the three neighborhoods with the highest average rents in Saudi Arabia are Al Malqa and Hittin in North Riyadh (SAR 5,500-7,500/month for 2-beds, around $1,460-$2,000 USD or €1,375-€1,875 EUR), and Al Shati in Jeddah (SAR 5,000-6,800/month, around $1,330-$1,810 USD or €1,250-€1,700 EUR).
These premium Saudi neighborhoods command top rents because they offer newer building stock, excellent security, proximity to major employers and international schools, and access to high-end retail and dining.
The typical tenants renting in these high-rent Saudi neighborhoods are senior expat professionals, wealthy Saudi families, and corporate executives who prioritize quality, space, and lifestyle amenities.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Saudi Arabia.
Where do young professionals prefer to rent in Saudi Arabia right now?
The top three neighborhoods where young professionals prefer to rent in Saudi Arabia are Al Olaya and Al Sulimaniyah in central Riyadh, and Al Rawdah in Jeddah.
Young professionals in these Saudi neighborhoods typically pay SAR 3,000-5,000 per month (around $800-$1,330 USD or €750-€1,250 EUR) for 1-bedroom apartments that balance affordability with location.
These neighborhoods attract young professionals in Saudi Arabia because they offer easy commutes to business districts, walkable access to restaurants and cafes, modern apartment buildings, and a social atmosphere suited to career-focused singles.
By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Saudi Arabia.
Where do families prefer to rent in Saudi Arabia right now?
The top three neighborhoods where families prefer to rent in Saudi Arabia are Al Yasmin and Al Narjis in North Riyadh, and Al Muhammadiyah in Jeddah.
Families renting 2-3 bedroom apartments in these Saudi neighborhoods typically pay SAR 5,000-8,000 per month (around $1,330-$2,130 USD or €1,250-€2,000 EUR), with villas costing significantly more.
These family-friendly Saudi neighborhoods offer larger apartments and villas, quieter streets, proximity to schools and parks, and a sense of community that appeals to households with children.
Top-rated schools near these family neighborhoods in Saudi Arabia include international schools following British, American, and IB curricula, plus well-regarded Saudi national schools.
Which areas near transit or universities rent faster in Saudi Arabia in 2026?
As of January 2026, the top three areas near transit hubs or universities that rent fastest in Saudi Arabia are the King Saud University area in Riyadh, central Riyadh corridors benefiting from metro improvements, and Al Faisaliyah near major Jeddah arterials.
Properties in these high-demand Saudi areas typically stay listed for just 15-25 days, compared to the citywide average of 25-40 days.
The rent premium for properties within walking distance of transit or universities in Saudi Arabia is typically SAR 300-600 per month (around $80-$160 USD or €75-€150 EUR) above comparable units farther away.
Which neighborhoods are most popular with expats in Saudi Arabia right now?
The top three neighborhoods most popular with expats in Saudi Arabia are the Diplomatic Quarter area in Riyadh, Al Khobar's Al Rakah district in the Eastern Province, and Al Shati in Jeddah.
Expats renting in these Saudi neighborhoods typically pay SAR 4,500-8,000 per month (around $1,200-$2,130 USD or €1,125-€2,000 EUR) for quality apartments or compound housing.
These neighborhoods attract expats in Saudi Arabia because they offer international schools nearby, compound-style living with Western amenities, established expat communities, and easy access to major employers.
The most represented expat communities in these Saudi neighborhoods include Americans, British, Indians, Filipinos, and other Gulf-region nationals, reflecting the diverse workforce in oil, healthcare, and education sectors.
And if you are also an expat, you may want to read our exhaustive guide for expats in Saudi Arabia.
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Who rents, and what do tenants want in Saudi Arabia right now?
What tenant profiles dominate rentals in Saudi Arabia?
The top three tenant profiles that dominate the rental market in Saudi Arabia are young Saudi professionals relocating for work, expat professionals on corporate contracts, and families moving to Riyadh for new opportunities.
In Saudi Arabia, young professionals and expats each represent roughly 30-35% of the rental market, while relocating families make up about 20-25%, with the remainder split among students and temporary project workers.
Young professionals in Saudi Arabia typically seek 1-bedroom apartments near business districts, expats often prefer furnished units or compound housing, and families look for 2-3 bedroom apartments or villas in quieter neighborhoods with school access.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Saudi Arabia.
Do tenants prefer furnished or unfurnished in Saudi Arabia?
In Saudi Arabia, roughly 35-40% of tenants prefer furnished rentals while 60-65% choose unfurnished apartments, though this split varies significantly by tenant type and lease length.
Furnished apartments in Saudi Arabia typically command a rent premium of SAR 500-1,000 per month (around $130-$270 USD or €125-€250 EUR) compared to unfurnished units of similar size and location.
In Saudi Arabia, expat professionals on short-term contracts and project staff strongly prefer furnished rentals, while Saudi households and expats on longer stays tend to choose unfurnished units they can personalize.
Which amenities increase rent the most in Saudi Arabia?
The top five amenities that increase rent the most in Saudi Arabia are high-quality central AC systems, dedicated covered parking, 24-hour security, gym and pool access, and proximity to walkable retail and dining.
In Saudi Arabia, a reliable modern AC system can add SAR 200-400 per month to rent, dedicated parking adds SAR 150-300, building security adds SAR 100-250, gym/pool access adds SAR 200-400, and prime walkable location adds SAR 300-600 (totaling roughly $250-$520 USD or €235-€490 EUR in combined premiums).
In our property pack covering the real estate market in Saudi Arabia, we cover what are the best investments a landlord can make.
What renovations get the best ROI for rentals in Saudi Arabia?
The top five renovations that get the best ROI for rental properties in Saudi Arabia are AC system upgrades, kitchen modernization, bathroom fixture replacement, improved lighting and window treatments, and insulation improvements.
In Saudi Arabia, AC upgrades typically cost SAR 3,000-8,000 (around $800-$2,130 USD) and can justify SAR 200-400 higher monthly rent; kitchen refreshes cost SAR 5,000-15,000 and add SAR 150-350 monthly; bathroom updates cost SAR 2,000-6,000 and add SAR 100-200 monthly.
Renovations that tend to have poor ROI in Saudi Arabia include luxury finishes that exceed neighborhood standards, swimming pool additions to standalone properties, and cosmetic upgrades that don't address cooling or durability concerns.
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.
How strong is rental demand in Saudi Arabia as of 2026?
What's the vacancy rate for rentals in Saudi Arabia as of 2026?
As of January 2026, the estimated vacancy rate for rental properties in Saudi Arabia ranges from 5-8% in Riyadh, 6-10% in Jeddah, and 7-11% in the Eastern Province.
Across different Saudi neighborhoods, vacancy rates range from as low as 3-4% in premium North Riyadh areas to 12-15% in older buildings or less desirable locations in secondary cities.
The current vacancy rates in Saudi Arabia are historically low, reflecting the tight market conditions that prompted the government to introduce rent controls in Riyadh in late 2025.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Saudi Arabia.
How many days do rentals stay listed in Saudi Arabia as of 2026?
As of January 2026, the average number of days rentals stay listed in Saudi Arabia is approximately 25-35 days for well-priced apartments in major cities.
Across different Saudi property types and neighborhoods, days on market ranges from 15-20 days for premium units in high-demand Riyadh areas to 45-60 days for older apartments in less popular Jeddah districts.
The current days-on-market figures in Saudi Arabia are slightly faster than one year ago, reflecting continued strong demand despite the rent freeze moderating Riyadh's pace somewhat.
Which months have peak tenant demand in Saudi Arabia?
The peak months for tenant demand in Saudi Arabia are January through February (post-holiday job moves and new contracts) and August through September (back-to-school relocations and post-summer returns).
The specific factors driving these seasonal demand patterns in Saudi Arabia include corporate hiring cycles that often start in Q1, school year timing in September, and the general slowdown during hot summer months when fewer people want to move.
The months with the lowest tenant demand in Saudi Arabia are during Ramadan and Eid periods, when most people postpone moves, and the peak summer heat months of June and July when relocation activity drops significantly.
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An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What will my monthly costs be in Saudi Arabia as of 2026?
What property taxes should landlords expect in Saudi Arabia as of 2026?
As of January 2026, Saudi Arabia does not have a standard annual property tax like many Western countries, so landlords do not budget for recurring holding taxes on residential rentals.
The main government charge landlords face in Saudi Arabia is the Real Estate Transaction Tax (RETT) of 5% on property purchases or sales, which can range from SAR 25,000 to SAR 250,000+ (around $6,650-$66,500 USD or €6,250-€62,500 EUR) depending on property value, though this is a one-time cost, not annual.
In Saudi Arabia, property-related costs are calculated primarily at the transaction level rather than annually, which is why understanding RETT matters more than looking for a typical "property tax rate."
Please note that, in our property pack covering the real estate market in Saudi Arabia, we cover what exemptions or deductions may be available to reduce property taxes for landlords.
What utilities do landlords often pay in Saudi Arabia right now?
In Saudi Arabia, the utilities landlords most commonly pay on behalf of tenants include building service charges (where applicable), major system maintenance, and sometimes internet or bundled services in compound or serviced apartment settings.
Typical monthly costs for landlord-paid utilities in Saudi Arabia range from SAR 200-500 (around $53-$133 USD or €50-€125 EUR) for building service charges, while major AC or system maintenance can add SAR 100-300 monthly when averaged over the year.
The common practice in Saudi Arabia is for tenants to pay their own electricity and water bills directly, especially in standard apartments, while landlords handle the building infrastructure and any communal services.
How is rental income taxed in Saudi Arabia as of 2026?
As of January 2026, rental income taxation in Saudi Arabia depends on your residency status and business structure, with individual Saudi landlords generally not subject to income tax on rent, while business entities and nonresidents may face different treatment under ZATCA regulations.
The main deductions landlords can claim against rental income in Saudi Arabia include maintenance costs, property management fees, and depreciation, though the specific rules depend on how your rental activity is classified (personal versus business).
A common tax mistake specific to Saudi Arabia is assuming that all rental income is automatically tax-free, when in reality nonresident structures, corporate ownership, or large-scale rental operations may trigger income tax obligations that require proper documentation.
We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in Saudi Arabia.
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 Saudi Arabia, 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 |
|---|---|---|
| GASTAT CPI Bulletin | This is Saudi Arabia's official inflation statistics, including the "rents paid for housing" component. | We used it to anchor the direction and magnitude of rent inflation reported by the government. We then translated "rent inflation" into 2026 rent-level estimates by combining it with market-level rent benchmarks. |
| GASTAT CPI Methodology | This explains how the CPI is built and what "rent" measures inside the official basket. | We used it to make sure we interpret the CPI rent signal correctly. We used it to justify why CPI is best for trend and not enough for unit-specific absolute rent levels. |
| Saudi Central Bank (SAMA) Inflation Report | SAMA is the central bank, and its inflation reporting is a high-trust macro source. | We used it to cross-check that housing and rent is a major inflation driver and to frame 2026 affordability pressures. We also used it to align rent expectations with broader macro conditions. |
| Cavendish Maxwell H1 2025 Report | It's a well-known regional real estate consultancy with a formal market report and stated data sources. | We used it for city-level rent change rates like Riyadh apartments up 10.3% and Jeddah apartments up 4.7% year-over-year. We used those growth rates to move rent benchmarks forward into January 2026. |
| CBRE Saudi Arabia Q3 2025 Review | CBRE is a top-tier global real estate research firm with established methodology. | We used it to validate the story of strong rental pressure and policy response, especially in Riyadh. We used it to support our 2026 outlook assumptions about demand, supply, and regulation. |
| JLL KSA Living Market Dynamics | JLL is a top-tier global consultancy that regularly publishes structured market research. | We used it to cross-check tenant-demand drivers like inflows, affordability, and apartment preference that shape 2026 leasing behavior. We used it to support neighborhood-type conclusions for different tenant profiles. |
| Reuters Rent Freeze Coverage | Reuters is a highly reputable wire service and clearly attributes policy details to official announcements. | We used it to pin down the practical rules of the Riyadh rent freeze including scope, penalties, and caps. We used it to adjust 2026 rent-growth expectations in Riyadh downward versus the rest of the country. |
| AP News Rent Freeze Coverage | AP is a major international news agency that summarizes policy measures with attribution. | We used it as a second independent confirmation of the rent-freeze policy details. We used it to reduce single-source risk on a high-impact regulatory change. |
| ZATCA Real Estate Transaction Tax | ZATCA is the official tax authority, so its tax pages are the primary source. | We used it to describe landlord one-off costs tied to buying or selling, not monthly rent, to prevent common reader confusion. We used it to clarify that Saudi costs are often more about transactions and services than annual property taxes. |
| ZATCA Income Tax Implementing Regulations | This is the official implementing regulation page that defines who is subject to income tax rules. | We used it to explain when rental income can become taxable, for example with business activity or nonresident structures. We used it to keep the 2026 tax on rent section accurate and not folklore-based. |
| SERA Electricity Tariff | SERA is the regulator and publishes the official tariff schedule reference. | We used it to estimate a realistic utilities range tenants and landlords face in 2026. We used it to explain why electricity-heavy homes with AC can materially change monthly cost beyond rent. |
| Saudi Electricity Company Tariffs | SEC is the national electricity provider and explains how billing bands work. | We used it to translate tariff into a simple mental model for households where higher usage means higher bills. We used it to support our landlord versus tenant utility responsibility discussion. |
| Global Property Guide Saudi Rent Data | It's a long-running international property data publisher that states its rent data is compiled from local portals. | We used it as a transparent market asking rent benchmark to convert trends into a concrete monthly-rent figure. We then triangulated it against Saudi official indices and consultancy rent-growth rates to estimate 2026 levels. |
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