RIYADH: Saudi Arabia’s residential and commercial rent deals almost doubled in value last year to reach SR76 billion ($20.2 billion) compared to SR41.9 billion in 2021.
According to data by the Real Estate General Authority Ejar, the total value of commercial rent transactions amounted to SR40.9 billion last year, while those of residential properties reached SR35.1 billion.
In residential, the total value of apartment rent deals witnessed a 76 percent year-on-year increase in 2022 to stand at SR29.6 billion.
The total value of floor deals amounted to about SR3.1 billion, an increase of 51 percent compared to 2021, while the total value of villa deals came in at SR 2.9 billion – a rise of 49 percent.
Commercial deals for shops grew 108 percent in total value, reaching SR17.4 billion during 2022 while the total value of exhibition and office deals jumped 157 percent and 77 percent to SR7.2 billion and SR4 billion, respectively.
In terms of cities, Riyadh came first with the highest number of rent deals in 2022 valued at SR24.7 billion, followed by Jeddah with SR17 billion and Makkah at SR4.9 billion.
The lowest were Najran, at SR249 million, followed by Arar with SR226 million and Al Bahah at SR148 million.
Riyadh was the highest city in terms of unit supply standing at 470,000 residential units and 181,000 commercial units in 2022.
Jeddah was the second highest city in terms of supply with 357,000 residential units, up 59 percent year-on-year, and 108,000 commercial units, up 84 percent.
The volume of units offered for rent amounted to 3.2 million units during 2022, a 53 percent yearly rise, with more than 2.4 million residential units. The volume of commercial units offered for rent amounted to more than 800,000 units.
Ejar is a comprehensive system that aims to develop the housing and real estate sector in Saudi Arabia by creating sustainable solutions for the challenges of the real estate market that preserve the rights of all parties concerned with the lease.