The rental market in Saudi Arabia is attractive to investors because of high rental yields. Rising demand for rental units and the lack of adequate supply have led to massive rent increases.

Rental yields still high in Saudi Arabia!

The rental market in Saudi Arabia is attractive to investors because of high rental yields. Rising demand for rental units and the lack of adequate supply have led to massive rent increases. 


In Riyadh,

the average monthly rent for villas and duplexes soared by 17% to SAR270 (US$72) in Q4 2011 from the same period last year, according to Colliers International

the average monthly rent for apartments rose by 14% to SAR222 (US$59) per sq. m.

In Jeddah, 

the average monthly rent for villas and duplexes rose by 11% to SAR350 (US$93) in Q4 2011 from a year earlier

for apartments, rents rose by 7% to an average of SAR264 (US$70) per month.

In Q4 2011, the rental yields in Riyadh is high at a range of 7.8% for apartments and 8.6% for villas and duplexes, according to Colliers International.

On the other hand, in Jeddah, yields for villas and duplexes fell to 8.8% in Q4 2011 from 9.1% in the previous year. Likewise, yields for apartments fell to 10.8% in Q4 2011 from 11.5% in the previous year.