The rent index on the ‘Sakani’ platform of the Ministry of Municipal and Rural Affairs and Housing recorded a decrease of 52 percent in the average rent values of residential apartments in Riyadh during the last month of July as compared to the previous month of June 2022.
The rent index ranged between one percent and 52 percent in 32 neighborhoods in the capital city out of 43 neighborhoods that recorded 200 or more residential rent deals. These included more than 18,000 rent deals of residential apartments that were concluded in July compared to June.
As for the rest of the 11 neighborhoods, they recorded stability in the average rent values of residential apartments, with an increase of up to 15 percent, including more than 4,800 deals clinched during the last month.
The three neighborhoods that recorded the highest number of apartment deals were Dhahrat Laban, which recorded an increase of 4 percent in the average rent values, while the second highest number of apartment deals was recorded in the Tuwaiq neighborhood with a decrease in the average rent values by 12 percent, and the Aziziyah neighborhood came third in the number of apartment deals though it recorded a decrease of 14 percent in the apartment deals.
It is noteworthy that Riyadh topped the Kingdom’s Rent Index in terms of rent deals, dominating more than 32 percent of the total 146,000 rent deals recorded with Ejar e-network in February, according to a report of the ministry published in March this year. Jeddah came second with 25 percent followed by Makkah and Dammam with 6 percent each. Madinah and Al-Khobar constituted 5 percent and 4 percent of the total deals respectively.
The rent index aims to achieve transparency and stimulate investment in the real estate rental sector in the Kingdom by setting specific rental indices for cities, neighborhoods, and different types of real estate.