🇸🇦 Middle East 6.9% avg yield

Rental Yield in Riyadh (2026)

Average gross and estimated net rental yields for property investors in Riyadh, Saudi Arabia. Updated April 2026.

Avg. Gross Yield
6.9%
per year

Estimated Yield by Property Type

Gross yield calculated from average annual rent ÷ estimated purchase price. Net yield deducts estimated 15–20% for expenses.

Unit Type Avg Monthly Rent Annual Rent Est. Gross Yield Est. Net Yield
Studio SAR 2,400 SAR 28,800 7.7% 6.3%
1 Bedroom SAR 3,800 SAR 45,600 6.9% 5.7%
2 Bedrooms SAR 5,800 SAR 69,600 6.6% 5.4%
3 Bedrooms SAR 8,500 SAR 102,000 6.3% 5.2%
4BR / Villa SAR 14,000 SAR 168,000 5.9% 4.8%

Gross yield estimates use average market purchase prices. Net yield deducts approx. 18% for maintenance, management, and vacancy. Actual returns vary.

Yield by Neighbourhood

Al Olaya (Olaya District)
CBD Premium
6.4%
1BR avg: SAR 5,500/mo
Demand: Very High
Al Malqa
Upscale Res
6.4%
1BR avg: SAR 4,200/mo
Demand: High
Diplomatic Quarter
Embassy/Exec
6.4%
1BR avg: SAR 6,000/mo
Demand: High
Al Nakheel
Family
7.4%
1BR avg: SAR 3,800/mo
Demand: High
Al Sahafa
Mid-market
7.4%
1BR avg: SAR 2,800/mo
Demand: Medium
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Riyadh Investment Market Overview

Riyadh is experiencing its fastest rental growth in a decade, driven by Vision 2030 mega-projects, the HQ2 program attracting multinationals, and population growth. Demand significantly outpaces supply in premium and mid-market segments.

Investor Insights

  • HQ2 program is driving corporate housing demand for senior expats and executives.
  • Furnished apartment demand is very high — 25–35% premium over unfurnished.
  • Ejar platform (Ministry of Justice) manages rental contract registration.
  • Female tenants can now sign contracts independently — market has expanded significantly.
  • Giga-projects (NEOM, Qiddiya, Red Sea) are creating new rental demand hubs.

Riyadh Investment Facts

Market 🇸🇦 Saudi Arabia
Avg Gross Yield 6.9%
Est. Net Yield ~5.7%
YoY Rent Change +11.2%
1BR Avg Rent SAR 3,800/mo
Population 7.7M
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Rental Yield FAQs — Riyadh

What is a good rental yield in Riyadh?

The average gross yield in Riyadh is 6.9%. A yield above this is considered good. Smaller units (studios, 1BR) typically yield more than larger apartments because purchase prices don't scale proportionally with rent.

What is the difference between gross and net yield?

Gross yield = (annual rent ÷ property price) × 100. It ignores costs. Net yield deducts operating expenses — maintenance, management fees, insurance, and vacancy periods — typically 15–20% of gross rent. In Riyadh, the estimated net yield averages ~5.7%.

Which property type gives the best yield in Riyadh?

Studios and 1-bedroom apartments typically offer the highest gross yields in Riyadh because entry prices are lower relative to rental income. Studios average around 7.7% gross yield, while 3+ bedroom units may yield 6.3% or less.