Rising rents, land prices in Riyadh due to job, population growth: AQAR CEO

Rental prices in Riyadh have risen as job seekers relocate to the city for short-term assignments lasting between two and four years, said Ibrahim AshShohail, Chairman and CEO of the AQAR application.

He noted that the abundance of employment opportunities in the capital has placed significant pressure on the residential rental market, resulting in sustained increases over time.

In an interview with Al Ekhbariya, AshShohail added that population growth — whether from within Riyadh or from individuals moving to the city from other regions inside and outside the Kingdom — has further intensified demand for housing units.

This has driven real estate development activity, reflected in growing interest from real estate funds and the entry of numerous new developers into the market over the past four years in an effort to meet rising demand.

He explained that one of the negative consequences of this sustained demand has been rising prices.

Higher land costs, as land represents the largest component of sold real estate assets, have widened the gap between buyers’ purchasing power and the properties available in the market.

AshShohail also highlighted that the Real Estate Balance Program has helped lift land suspensions in northern Riyadh, which is expected to increase supply in the coming period and help restore balance between supply and demand.

He added that other initiatives, such as the White Land Tax, have mobilized undeveloped land for real estate development, further boosting supply to meet growing demand, alongside programs designed to facilitate real estate development.

According to data available with Argaam, Saudi Arabia’s real estate sector witnessed a series of regulatory decisions during 2025, which reshaped its landscape, aiming to curb speculation, increase the supply of housing units and developed land, and boost the sector’s attractiveness to local and foreign investments.

These decisions included measures with a direct impact on the market, most notably freezing rent increases in Riyadh, amending idle land fees, regulating non-Saudi property ownership, and introducing a package of housing support programs.

This reflected a clear direction toward achieving a sustainable balance between market stability and citizens’ ability to own and access housing at affordable costs.