Saudi Arabia’s rental index rises by 12.5 during July

RIYADH: Driven by various housing options, Saudi Arabia’s rental index rose by 12.5 during July 2023, compared to the same period a month before, said an official report.  
According to the report issued by the electronic rental service network Ejar, which is connected with the Sakani platform in covering 160 cities and governments countrywide, the rental index revealed that over 275,000 residential and commercial rental transactions were recorded during July, compared to 240,000 deals in June.  
Notably, June 2023 saw a 137 percent growth in residential rental deals compared to the same month last year. 
The report showed the trend continued in July with residential rental deals increasing by 15 percent and commercial transactions going up by 11 percent as compared to June.
Among all the Saudi cities, Riyadh took the lead with more than 58,000 residential and commercial rental transactions during July valued at more than SR900 million ($240 million). Jeddah followed the Saudi capital with over 35,000 deals while Makkah and Madinah recorded more than 13,000 transactions each. Dammam recorded
According to the index, Riyadh topped Saudi cities in rental deals with more than 58,000 residential and commercial rental transactions during July, with a total value of more than SR900 million ($240 million). Jeddah followed the capital city with over 35,000 deals, while Madinah and Makkah came next with more than 13,000 deals each. Dammam, on the other hand, recorded over 12,000 deals. 
The rental indicators allow beneficiaries to identify the price ranges of residential and commercial units. 
Speaking to Arab News last January, Abdulaziz bin Yousef, CEO and chairman of Fay, a Riyadh-based private property management company, said there had been a huge growth in the Kingdom’s residential market. 
“We have witnessed a huge demand for residential properties, and the growth has been exponential over the past 10 years, especially with the introduction of mortgages and the growth of the Saudi population,” he added. 
Saudi Arabia’s commercial property market is one of the sector’s “leading lights” worldwide, according to a new survey by the Royal Institution of Chartered Surveyors. 
RICS said in a recent press release that Saudi Arabia’s commercial property market remains one of the leading lights in both the Middle East and North Africa and the world, adding that confidence in future market conditions remains high.