Saudi Arabia is an attractive destination for expats and investors, thanks to its booming economy, tax-free salaries, and the Vision 2030 initiative that is transforming the real estate sector. Whether you’re moving for work, business, or investment, understanding the cost of housing is crucial. In this guide, we’ll break down rent prices, real estate costs, and insider tips on saving money while living in Saudi Arabia.
For a detailed step-by-step guide on buying real estate as a foreigner, visit this resource.
Why Choose Real Estate Saudi?
At Real Estate Saudi, we are dedicated to providing accurate, up-to-date information and expert guidance on property investments, rental trends, and market forecasts. Whether you’re an expat looking to rent an apartment or an investor seeking high-return opportunities, our platform offers insights and exclusive listings to help you make informed decisions.
We specialize in:
- Comprehensive property guides for foreigners and expats.
- Market insights on real estate investments across Riyadh, Jeddah, Dammam, and Madinah.
- Expert tips on mortgage financing, legal regulations, and cost-saving strategies.
For the latest property listings and investment advice, visit Real Estate Saudi today.
For official housing data, check the Saudi General Authority for Statistics (GASTAT) – Housing Data.
Average Rent Prices in Saudi Arabia (2024)
Renting in Major Cities
Rental costs vary widely depending on location. Here’s a breakdown of average rental prices in 2024 across major Saudi cities:
| City | Studio Apartment | 1BHK Apartment | 2BHK Apartment | Villa (4BHK) |
|---|---|---|---|---|
| Riyadh | SAR 30,000/year | SAR 50,000/year | SAR 80,000/year | SAR 180,000/year |
| Jeddah | SAR 28,000/year | SAR 48,000/year | SAR 75,000/year | SAR 160,000/year |
| Dammam | SAR 24,000/year | SAR 40,000/year | SAR 65,000/year | SAR 140,000/year |
| Madinah | SAR 22,000/year | SAR 38,000/year | SAR 60,000/year | SAR 130,000/year |
Riyadh, as the business hub, has the highest rental prices, whereas Madinah and Dammam offer more affordable alternatives.
For latest updates on foreign property investments, check this guide.
Buying Property in Saudi Arabia (2024 Prices)
Real Estate Prices by City
For those considering property investment, here are the average property prices per square meter:
| City | Prime Area Price (SAR/sqm) | Suburban Price (SAR/sqm) |
|---|---|---|
| Riyadh | SAR 15,000/sqm | SAR 8,500/sqm |
| Jeddah | SAR 14,000/sqm | SAR 7,800/sqm |
| Dammam | SAR 9,500/sqm | SAR 6,000/sqm |
| Madinah | SAR 8,500/sqm | SAR 5,500/sqm |
Mortgage rates for expats start at 4.5% from banks like Al Rajhi and SNB. For a deeper dive, visit this guide on property investment.
Hidden Costs of Housing in Saudi Arabia
1. Utilities & Maintenance
- Electricity: SAR 300-500/month for an apartment, SAR 800-1,200 for a villa.
- Water: SAR 50-150/month (heavily subsidized).
- Internet & TV: SAR 300-500/month for fiber-optic services.
- AC Maintenance: SAR 1,200-2,000 per year.
2. Agent Fees & Legal Costs
- Rental agent commission: Usually 5% of annual rent.
- Property registration fee: 2.5% of property price for buyers.
For a complete breakdown of legal fees, visit this real estate guide.
5 Tips to Save on Housing Costs
- Negotiate Rent: Many landlords lower rent by 5-10% for long-term leases.
- Explore Suburban Areas: Rents drop 30% outside central areas like Al Nakheel (Riyadh).
- Use Local Platforms: Sites like Haraj and Aqar offer direct deals with owners.
- Share Housing: Many expats split villa rentals to cut costs.
- Move During Summer: Expat turnover causes rental drops of 10-15% in July-August.
FAQs
- Is Saudi Arabia cheaper than Dubai for housing?
- Yes. Riyadh’s rents are 20-30% lower than Dubai’s, while Jeddah is about 35% cheaper.
- Can expats buy property in Saudi Arabia?
- Yes, but with some restrictions. Learn more in this foreign property buying guide.
- What’s the cheapest city to live in Saudi Arabia?
- Dammam is the most affordable, with 2BHK apartments starting at SAR 45,000/year.
- Are utilities expensive in Saudi Arabia?
- No, due to government subsidies. A family’s total utility bill rarely exceeds SAR 800/month.
- How much deposit is needed to buy a house in Saudi Arabia?
- For expats, 15-25% down payment is typically required for mortgages.
For insights into Saudi Arabia’s economy, refer to the World Bank Report on Saudi Arabia.
Conclusion
The cost of living in Saudi Arabia varies based on location, lifestyle, and housing choices. With competitive real estate prices and Vision 2030 initiatives boosting affordability, it’s an excellent time for expats and investors to explore Saudi Arabia’s housing market.
For expert real estate assistance, visit Real Estate Saudi today.
