Riyadh's real estate market is currently facing a stark supply and demand imbalance. With the local population's growth surpassing the rate of new residential construction, the demand for rental properties continues to rise, while the overall supply cannot meet market requirements, leading to a significant surge in rental prices. In the past year, apartment rents in northern Riyadh communities soared by 23%, with even more rapid increases near commercial centers and office buildings.

The Saudi government's latest implementation of regional headquarters policies has also intensified the scarcity of local housing. Foreign companies that do not establish regional headquarters in Saudi Arabia or relocate their regional headquarters to the country will not receive contracts from the Saudi government in the future. This policy has attracted numerous globally renowned companies to set up operations in Riyadh, contributing to a faster growth rate of the local population and exacerbating the shortage of available rental properties.

For foreign nationals, finding housing that meets their needs and budget is especially challenging. The existing stock of rental housing is insufficient to satisfy the demand from foreign nationals, prompting substantial investments in Riyadh's construction sector to build more apartment projects catering to this demographic. However, even with these efforts, choices remain limited, and prices are high.

Statistics indicate that the average rent in Riyadh is 24,800 Riyals per year (approximately 47,000 Chinese Yuan), with monthly rents for high-end apartments exceeding 7,000 Riyals. For some middle-income families and single individuals, the cost of renting has become a significant burden.

Additionally, some communities are family-oriented and less welcoming to single individuals. The limited number of affordable housing units being constructed by the Saudi government is insufficient to meet the needs of single individuals. This further narrows the housing options for foreign single individuals in Riyadh, exacerbating their rental challenges.

Despite numerous real estate projects under construction, it will take time for them to contribute to a significant increase in market supply. As a result, Riyadh's real estate market is expected to maintain its growth trajectory for an extended period.

However, individuals moving to Riyadh due to employment or educational reasons, especially those relocating with their companies, may face higher rental costs. They need to carefully budget for renting and navigate the challenges of the local rental market.