Is renting actually cheaper than buying right now?

In Riyadh districts with average apartment prices near 1.6 million SAR, renting now costs 1,800 SAR less per month than a standard 25-year mortgage at prevailing bank rates as of July 2026.

The gap widened after the Real Estate General Authority recorded a 9 percent rise in average sale prices since January while rental listings held steady. Higher financing costs tied to benchmark lending rates have pushed monthly ownership expenses above 9,000 SAR for typical two-bedroom units, outpacing rents that average 7,200 SAR in comparable buildings.

Costs compared in Olaya and Al Malaz

Along Olaya Street near the Riyadh Metro station, a 120-square-metre apartment rents for 86,000 SAR annually. The same unit lists for 1.55 million SAR to buy, requiring a 20 percent down payment and producing monthly payments of 8,950 SAR including insurance and fees. In Al Malaz, near the old airport road, rents sit at 72,000 SAR a year while purchase prices average 1.4 million SAR and carry 8,400 SAR in monthly debt service. Both neighbourhoods fall under the Sakani affordable-housing registry, which tracks these figures through its public dashboard updated every quarter.

The Real Estate General Authority’s June 2026 market bulletin listed 4,812 rental contracts signed in Olaya and Al Malaz combined, against 1,203 sales. Average transaction values rose 11 percent year-on-year while rental yields remained flat at 5.4 percent, confirming the short-term cash-flow advantage for tenants.

Next steps for Riyadh households

Families weighing a move should compare current listings on the Ejar platform against mortgage calculators offered by Al Rajhi Bank and Banque Saudi Fransi before signing any contract. Those planning to stay beyond five years may still find ownership cheaper over time once interest rates ease, but short-term budgets now favour renting in the listed districts.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.