Average rental prices in 45% of neighborhoods in the Saudi capital Riyadh declined by up to 42% as of May 2026, while they rose in 50% of neighborhoods and remained stable in about 5%.

These results come after a package of real estate balance decisions launched in September 2025, aimed at curbing the pace of rental increases in Riyadh, improving market efficiency, and reducing the pressures rents have seen in recent years.

Saudi Crown Prince Mohammed bin Salman directed last March five measures to achieve balance in the real estate sector, against the backdrop of rising land and rental prices in Riyadh in recent years.

They included lifting the freeze on sales, purchases, subdivisions, and partitioning, issuing building permits, and approving plans for lands north of the city, bringing the total area unfrozen in Riyadh to 81 square kilometers.

The measures also included the Royal Commission for Riyadh providing planned and developed residential plots for citizens of up to 40,000 pieces annually at prices not exceeding 1,500 riyals per square meter.

Mon, 20 2026

Haya Al-Khair and King Saud University among the biggest decliners

According to a survey conducted by the Financial Analysis Unit of "Al-Eqtisadiah," based on average rental prices in Riyadh neighborhoods via the Sakani platform, both Haya Al-Khair and King Saud University neighborhoods topped the list of most declining areas, with a drop of 42% each compared to the averages of September 2025.

They were followed by Al-Rahmaniya and Al-Raed neighborhoods with a 40% decline, then Al-Batha with 35%, Laban and Tuwaiq with 32%, then Al-Hada and Al-Bashayer with 31% each, followed by Al-Namuthajiya with 30%, and finally the new industrial city with a 29% decline.

Al-Rahmaniya neighborhood sees largest drop in value

The survey showed that Al-Rahmaniya neighborhood recorded the largest decline in value, with the average rent dropping from 76,600 riyals in September 2025 to 45,600 riyals in May 2026, while the average rent in King Saud University neighborhood dropped from 67,400 riyals to 39,000 riyals over the same period.

The survey results reflect the beginning of a repositioning in the rental market of Riyadh, with the impact of the real estate balance decisions varying among neighborhoods.

Tue, 30 2026

Rents rise in 50% of neighborhoods

While the entry of new housing supply and redistribution of demand contributed to lowering average rents in a number of areas, other neighborhoods continued to record significant increases, supported by sustained demand, strong locations, and proximity to business, services, and metro centers.

Average rental prices rose in 50% of Riyadh neighborhoods compared to September 2025, with increases reaching 117%, while they stabilized in about 5% of neighborhoods, reflecting continued divergence among sub-markets within the capital and differing responses of each neighborhood to supply and demand changes.

Indicators suggest the market is beginning to enter a phase of gradual repricing in a number of neighborhoods, with expectations that the impact of those real estate balance decisions will continue in the coming months, as more housing units enter the market and projects aimed at achieving greater balance between supply and demand continue.