Riyadh rent hike drives demand for home ownership

RIYADH: The Kingdom’s capital has experienced a significant surge in apartment rental prices in recent years, making it increasingly difficult for many residents to afford suitable accommodation.

This sharp rise in rental costs has led to a growing trend among Riyadh’s population to prioritize home ownership over renting, as they seek to gain more stability and control over their living situations.

According to recent real estate market data, the average rent for a one-bedroom apartment in central Riyadh has skyrocketed to over SR5,000 ($1,300) per month (numbers differ daily). For larger units, the costs can be even more staggering, with three-bedroom apartments often commanding monthly rents in excess of SR10,000, a CBRE.sa report states.

These exorbitant prices have placed a significant financial strain on many middle-class and lower-income families, forcing them to make difficult choices about their housing options.

“It’s become almost impossible for my family to continue renting,” said Shahad Al-Ghamdi, a young administrative manager living in Riyadh. “The rent for even a modest apartment eats up a large portion of my monthly salary, leaving little room for other expenses. I’ve been seriously considering taking out a mortgage and buying a home instead, as it would ultimately be more cost-effective in the long run.”