- Home » Expat News » Saudi rents to soar due to increased demand for apartments
Saudi rents to soar due to increased demand for apartments
| Published: | 2 Jul at 6 PM |
Want to get involved?
Become a Featured Expat and take our interview.
Become a Local Expert and contribute articles.
Get in touch today!
Become a Local Expert and contribute articles.
Get in touch today!
Tagged: Australia
Apartment rentals in Riyadh and Jeddah are expected to rise even higher in spite of the government’s recently-introduced 67 billion housing fund.
A recent survey has shown that Riyadh’s average rental charges rose by up to eight per cent during the first three months of 2013. The report, issued by Jones Lang LaSalle, also stated that rents in Jeddah had risen more slowly than in the capital, averaging four per cent.
In Riyadh, the districts of Al Sulemania, Al Olaya, Al Malaz and Al Warood have seen the sharpest increases over the three-month period, driven mainly by inflation. Demand was strongest for smaller apartments with two bedrooms.
Saudi nationals are avoiding commitments to the many new developments due to worries about bureaucratic delays and the resulting increase in prices by developers. The average rent rise for a small flat in a good area was six per cent.
Villa rents have increased by around eight per cent since the start of the year, with upscale properties in the central and western districts the hardest hit. Sale prices of villas, however, have only risen by around two per cent.
Expat demand is expected to fuel even more rent increases, especially for larger apartments with three or more bedrooms. Brokers state that the rise in demand is due to an increase in the number of expats arriving in the kingdom along with their families.
A recent survey has shown that Riyadh’s average rental charges rose by up to eight per cent during the first three months of 2013. The report, issued by Jones Lang LaSalle, also stated that rents in Jeddah had risen more slowly than in the capital, averaging four per cent.
In Riyadh, the districts of Al Sulemania, Al Olaya, Al Malaz and Al Warood have seen the sharpest increases over the three-month period, driven mainly by inflation. Demand was strongest for smaller apartments with two bedrooms.
Saudi nationals are avoiding commitments to the many new developments due to worries about bureaucratic delays and the resulting increase in prices by developers. The average rent rise for a small flat in a good area was six per cent.
Villa rents have increased by around eight per cent since the start of the year, with upscale properties in the central and western districts the hardest hit. Sale prices of villas, however, have only risen by around two per cent.
Expat demand is expected to fuel even more rent increases, especially for larger apartments with three or more bedrooms. Brokers state that the rise in demand is due to an increase in the number of expats arriving in the kingdom along with their families.
Comments » No published comments just yet for this article...
Feel free to have your say on this item. Go on... be the first!
