By Andy Sambidge
Huge discrepancy in kingdom's real estate costs revealed in new price index.
The cost of a three-bed home in Riyadh can cost more than four times that of a similar property in Jeddah, a new real estate price index for Saudi Arabia has showed.
A house costing on average SR292,500 in Jeddah will sell for close to SR1.6 million in Riyadh, a difference of 447 percent, the new market data provided by Dubai-based Cityscape Intelligence (CI) revealed.
It said on Wednesday it was launching new statistics which not only compares real estate sales and leasing prices in eighteen areas across Jeddah and Riyadh, but also compares office and residential asset classes, tracking prices back to 2007.
The index also showed that rental prices for apartments in Riyadh and Jeddah varied immensely.
For example rental prices of three bedroom apartments in Jeddah were on average SR24,000 per unit, while the same in Riyadh was SR52,000 per unit, a difference of 116 percent.
“Choosing the right location could save potential investors thousands of dollars," added Robertson.
The new projects database section on the index has more than 4,000 real estate projects with their status, construction value, completion date, and developer and contractors details listed.
The database is updated weekly and covers projects from 2005 onwards in the Middle East, North Africa and India.
Wow, if Riyadh is soo cheap and Jeddah even more so then compare this with Dubai in terms of buying...........HUGE DIFFERENCE!
Afghanistan is cheaper. But who cares about Riyadh and Jeddah. UAE is the lace to be and rents here are justified.
The doubt the study findings. Jeddah is more expensive than riyad in terms for rental & purchasin a new ome. It's obvious this company doesnt kow much about saudi. I reccomend that the go & visit the country to conduct suh a study rather than sit in their offices in dubai & rush to release such fraud findings. Dastoor I'm surprised that you dont care about the 2 largest cities in the largest economy in the middle east. I know you are probably from afghanistan & advise you not to make such stupid comments. Khudafas
Well, the report is highly exaggerating the expensiveness of Riyadh Residential areas. It is true, Riyadh was more cheaper than Jeddah in the old days, but, now the price is double not four times. The average three bedroom apartment is around SR. 35,000 whiles Villas Villas are around SR. 70,000. So, please cool down and don't put extraordinary figures because that will freighten to many young people who wish to settle the capital as it is leading centers for the nation. Riyadh is quite suitable to middle class people, but, much much cheaper than places like Dubai, Doha and even Jeddah and Dammam too. Wishing you a happy settlement in Riyadh. With regards,,, Mohammad
For sure the information provided by the CI (Cityscape Intelligence is absolutely wrong and the truth is just reverse. The living cost in Jeddah is higher than the Riyadh ; both in the rental or buying a home. To give importance to such false data has to be questioned as it will effect the importance of the ARABIAN BUSINESS
Riyadh is indeed more expensive than Jeddah, may be not 400% but certainly around 250-300% I would think. Also, the buildings are much better designed and new when compared to Riyadh, in fact you will hardly find even relatively new buildings in Riyadh with lifts or elevators.. Perhaps most importantly, the system of Akaria or the real-estate agents who are more dangerous than the owners themselves is the bane of the system in Riyadh while you will be dealing directly with the owners most of the time in Jeddah.
I am a dweller of Riyadh City for the past 20 years. In old days Riyadh was cheaper than Jeddah, recently rent prices gone up not only in Riyadh but in many Cities of Saudi Arabia. With regard to your comparison between Jeddah and Riyadh I think it has been exagerated and the information which was given isn't accurate. There are many factors for the difference of the prices but not this much. I think it's better if you can have a local real estate company to get reasonable informatio. Regards
I believe the report reflects only superficial information and lacks of realistic data. The difference is not so high and it varies from area to area depending on the facilities.