No monopoly in rental market: REGA CEO

Abdullah Al-Hammad, CEO of the Real Estate General Authority (REGA)

The rental market in Riyadh comprises more than 1.07 million units at present, including 838,000 residential units and 332,000 commercial units, CEO of the Real Estate General Authority (REGA), Abdullah Al-Hammad, said.

During a government press conference today, Sept. 29, Al-Hammad added that these units are owned by approximately 200,000 individuals and corporates. 

Of these owners, 84% possess residential units, with the largest single owner holding 3,200 units, equivalent to 0.4% of the total. Another 16% own commercial units, with the largest single owner holding no more than 2,600 units, equivalent to 1% of the total.

Al-Hammad noted that, according to updated 2025 data, 50% of owners hold only one residential unit, 19% own two units, and 7% own more than 10 units.

He emphasized that these figures translate into no monopoly in the Saudi rental market.

He added that the local rental market is broad and diverse. It is not dominated by any single party, standing far from being monopolized. However, the absence of a monopoly does not mean the market is free of challenges.

Real estate prices, including rental rates, have seen significant increases. This is due to a shortage in housing supply relative to rising demand, which is a key factor driving rapid price growth.

Accordingly, the Crown Prince’s directives have been clear and goal-oriented: “comprehensive real estate balance.”

Al-Hammad explained that in-depth studies showed that markets experiencing economic growth often see significant price hikes against the backdrop of elevated demand and weaker supply — similar to some global cities.

Some foreign studies indicated that previous measures often addressed a single aspect without considering other influencing factors. In contrast, Saudi Arabia’s directives for achieving real estate balance are comprehensive, tackling all aspects while also ensuring a growing housing supply — a sustainable solution to be implemented in the coming years.

The CEO added that REGA conducted a detailed analysis of the local market, taking into account its specifics, and carefully reviewed international experiences to identify areas for improvement in each case. The result is a comprehensive and balanced model that avoids the shortcomings faced by other benchmark countries.

This model stimulates housing supply, controls inflation, and offers multiple pathways over different timelines to ensure market stability and balance.