(MENAFN) Saudi Arabia's residential and commercial rent deals increased significantly in value last year, according to data from the Real Estate General Authority Ejar. The total value of rent transactions reached SR76 billion (USD20.2 billion) in 2022, almost double the SR41.9 billion recorded in the previous year. Commercial rent transactions accounted for SR40.9 billion, while residential properties reached SR35.1 billion. Apartment rent deals saw the highest year-on-year increase, with a 76 percent rise to SR29.6 billion. The total value of floor deals increased by 51 percent to SR3.1 billion, while villa deals rose by 49 percent to SR2.9 billion.
In terms of commercial deals, shops grew by 108 percent in total value, reaching SR17.4 billion, while exhibition and office deals jumped by 157 percent and 77 percent to SR7.2 billion and SR4 billion, respectively. Riyadh had 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 had 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 over 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. The system has played a significant role in promoting the growth of the real estate sector in the country by ensuring transparency and fairness in rent transactions. The significant increase in the value of rent deals last year is a testament to the effectiveness of Ejar in creating a favorable environment for the real estate market in Saudi Arabia.
In conclusion, the significant increase in the value of rent deals in Saudi Arabia last year highlights the country's growing real estate market. The rise in commercial and residential transactions underscores the country's growing economy and the increasing demand for real estate solutions. The Ejar system's effectiveness in ensuring transparency and fairness in rent transactions has contributed significantly to the growth of the real estate sector in the country.
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