Cityscape Intelligence is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Residential rental deals surge 137% in Saudi Arabia

Article-Residential rental deals surge 137% in Saudi Arabia

Riyadh Saudi Arabia town landscape suburb view at sunset
Residential rental deals surges 137% in Saudi Arabia, driven by efforts to promote transparency and boost housing program goals

As highlighted by Arab News earlier this week, residential rental deals in Saudi Arabia saw a strong increase in June, surging 137% compared to the same month in 2022. The rental index recorded over 240,000 deals, reflecting an extra 190,000 agreements compared to the previous year. This growth in rental activity is a result of the efforts to promote transparency and stimulate investment in the Kingdom's rental real estate sector.

BOOSTING HOUSING PROGRAM OBJECTIVES

The rental index aligns with the goals of the Housing Program, a key initiative of Saudi Vision 2030, aimed at supporting beneficiaries, enhancing market efficiency, and improving affordability in the Kingdom. By providing clear data on rental trends, the index helps achieve these objectives.

COMMERCIAL RENTAL DEALS SHOW GROWTH

The rental index also revealed that there were over 50,000 commercial rental agreements signed in June 2023. This represents a 138% increase in commercial rental deals compared to the same month in 2022.

Riyadh led the region in both commercial and residential deals, surpassing 54,000 agreements. Jeddah followed with over 32,000 deals, followed by Dammam with 11,000, Madinah with 10,500, and Makkah with 10,000.

SETTING SPECIFIC RENTAL INDICATORS

The rental index works on building specific rental indicators for different cities, neighbourhoods, and types of real estate, both residential and commercial. These indicators help individuals identify price ranges for housing units and search for neighbourhoods within their preferred price range. Users can review the number of deals and open units in specific neighbourhoods, as well as the average rental values. Additionally, the indicators provide graphical representations to clarify the price range of residential deals.

So, the growth of rental deals in Saudi Arabia that the rental index observed is a strong sign for the Kingdom.

GOVERNMENT INITIATIVES TRANSFORMING THE HOUSING MARKET

Ongoing government initiatives, such as improved access to finance and standardized regulations, are transforming the housing market and enhancing accessibility for Saudi families. A report by PwC Middle East released in December 2022 highlighted the positive impact of these initiatives.

INCREASING HOUSING DEMAND

Saudi Arabia's housing demand reached 99,600 houses in 2021 and is projected to grow by over 50% to reach 153,000 houses by 2030. With the continuous efforts to reform the housing market, the Kingdom is striving to meet the increasing demand for quality residential properties.

As a whole, the growth in residential rental deals in Saudi Arabia demonstrates the positive outlook in the real estate market. The rental index supports this by playing a vital role in promoting transparency and supporting the objectives of the Housing Program and Saudi Vision 2030.

So, with ongoing government initiatives and a strong vision guiding them, the Saudi real estate market is in a strong position with improved access for Saudi families and much more.

Hide comments
account-default-image

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish