Saudi Arabia's real estate sector boom in the past several years can be primarily attributed to the millions of expats who call this country home. Even though many of them have left the Kingdom due to the Saudization process or the lower economic performance of the country, still thousands of foreigners relocate to Saudi Arabia every year, often with their families who have been offered a job.
The Saudi property market
To house millions of expats, real estate is one of the fastest-growing sectors in the region. In addition, the population of Saudi Arabia is young and so a lot of young adults are looking to move out and start renting. With rental properties soaring in the last ten years, housing options in Saudi Arabia have increased exponentially.
The rental market and compounds are a thriving business. The fact that most Saudis occupy rental units only exacerbates the demand for rental properties. Foreign ownership of land or real estate is possible after obtaining a license. Usually, the ownership of land by non-Saudis is connected with investment initiatives. The government recently adopted a law concerning the special privilege iqamas/premium residence permits. Holders of a Premium Residency can own and rent property.
If you cannot afford the special iqama, which costs around SAR 800,000 for permanent residence or SAR 100,000 for renewable iqama, you will probably opt for renting accommodation.
Securing accommodation in Saudi Arabia
Depending on your personal situation, your employer may take care of accommodation completely. It is common for employers to secure housing for employees. Sometimes, the employer may issue a housing allowance, whereby the employee must secure their own housing. It is also common that the employer will pay a portion of the rental fees.
Employers providing housing allowances and letting employees find accommodation are growing in popularity. While this creates additional stress at the start, on top of everything related to moving to a whole new country, it also provides more freedom as you can decide on the rent and neighborhood you would like to offer to your family.
Saudi Arabia is famous for its conservative society; while things are changing drastically, some things remain the same. The country has stringent rules on housing arrangements and how the real estate sector does business. The government has set up a platform to regulate the market and protect both the owner and tenants. Every rental contract should now be signed and paid for on the Ejar platform (more information below).
Housing options in Saudi Arabia
There are a few common housing options in Saudi Arabia, as outlined below:
Apartments/flats
The most popular type of accommodation in Saudi Arabia are low-rise buildings. Apartment buildings between 4 to 8 floors are typically found across the country.
Villas
Villas (mansions) are large homes that are secured with gates around their perimeters. The villas for rent are often partially furnished and often include swimming pools. They tend to be steeper in price and usually allow for single-family occupancy only. However, shared villas are sometimes an affordable alternative to apartments. They are villas that are usually occupied by a Saudi family whose children have moved out. They are designed to have their own entrance and parking so that you access them like you would any other apartment. On the downside, they may not be the best option long-term as they may be designated to have the children of the family come back after a while. Still, this has become more popular in cities like Riyadh.
Compound living in Saudi Arabia
A lot of expats moving to Saudi Arabia prefer to settle in compounds. Also known as 'Western compounds', these gated communities include everything you would find in an average Western neighborhood: swimming pools, fitness centers, convenience stores, coffee shops, restaurants, supermarkets, and often preschools. Inside the walls of the compound, expats can lead a more relaxed lifestyle and avoid the restrictions of everyday life in Saudi Arabia.
Life in a compound can be especially easier for expat women moving to Saudi Arabia. First, they will be able to dress in pretty much the same way they do back home and freely interact with the opposite sex. Settling in a compound also offers lots of opportunities for socializing with other expats and can help battle the feelings of isolation often experienced by new expats. Plus, the proximity of all essential amenities makes compound living exceptionally convenient.
Leases in Saudi Arabia
Once you have decided on your accommodation, there are a few things that are required at the time of lease signing:
- Residency card (Iqama);
- Copy of passport;
- Marriage certificate/family card (if applicable);
- Payment (full/partial).
Important:
If your rental contract is in Arabic and you don't have a good command of the language, it's very important that you have it translated into English (or another language you prefer). Never sign a contract if you don't completely understand any of its clauses. It is important to make sure the person you are in contact with is responsible for the place. This used to be a common scam, but this is no longer the case since the government set up the Ejar platform (more information below).
The rental contract may also outline the rights and obligations of both the landlord and the tenant. Typically, the tenant will need to:
Make sure that the payments are made on time and that the checks don't bounce. Pay utilities and other related bills without delay.
Rent in Saudi Arabia is usually paid 6 months or one year in advance; this may be a big expense to consider. Paying a whole year, as opposed to 6 months, will usually entail some sort of discount.
Important:
Failure to pay rent is a criminal offense in Saudi Arabia; you can be charged and brought to court. It is very important to safeguard your lease in case of any legal dispute that may occur.
Overall, you are expected to:
- Keep the rented property well-maintained and avoid damage to any of the items that come with it (furniture, appliances, etc.).
- Abide by all the terms and conditions outlined in the rental agreement.
- Avoid creating any disturbances for the neighbors: don't make noise late in the evening, abide by the local social norms, etc. In big cities, like Riyadh or Jeddah, you will quickly notice that Saudis enjoy living and going out at night, but do so as discreetly as possible.
- Not use the property for commercial or industrial purposes or sublet it to other parties (unless this has been approved by the landlord)
The landlord must:
- Hand over the place to the tenant in a proper state. (Make sure to do a proper walkthrough of the property you are about to rent and note if there is anything that needs to be fixed).
- Provide receipts to the tenant of all the checks received (As a tenant, keep all the receipts given to you by the landlord till the end of the rental contract). This has been simplified with the Ejar platform.
- Make sure public areas in the building are well-maintained.
- Perform all needed repairs in a timely manner (as agreed upon in the rental contract). Make sure that you have a person of contact for these cases.
- Guarantee the tenant's privacy and not visit the rented property without prior agreement.
- Keep the rent price the same throughout the duration of the contract.
Important:
When you sign your lease, it is absolutely essential that you register it in the Ejar system. This online portal has been created to manage rental property in Saudi Arabia. Moreover, you will need to provide your Ejar number if you have a dispute with your landlord. To register in the Ejar system, you will need to upload a copy of the rental agreement and provide basic information about yourself and the landlord. Note that if you don't register as a tenant in the Ejar system, your Iqama (residence permit) may not be renewed.
How to find accommodation in Saudi Arabia
A quick online search to start things off is a great way to get an idea of what is being offered in Saudi Arabia, as well as giving you an idea of price ranges, and reviews by other tenants. Listed at the end are popular housing websites that offer rental vacancies across the region.
Another way to search for accommodation is by word-of-mouth. Speaking to seasoned expats on our Saudi Arabia Forum is a convenient way to discuss and ask questions and concerns you may have about accommodation in Saudi Arabia. Chatting with co-workers is also very helpful as they tend to have similar commutes, so asking about the areas where they found accommodation could be very beneficial. Remember that commute times can easily add up to a very sizable chunk of your time if you live in a congested city.
Employers are great sources of information; they are accustomed to providing housing for expats and are often long-time Saudi residents, so they can help with the search.
Across Saudi Arabia, you will find that the most popular means of advertising rental units is to have signage posted on the actual residential buildings. Several drives alongside major roads, pleasant neighbourhoods and popular areas will definitely open up opportunities. It is also common practice to ask the guard of the apartment complex if it is possible to visit available apartments. If you found a suitable neighborhood, you can try your luck that way.
Dos and don't of renting property in Saudi Arabia
Do:
Rent near your workplace, as traffic in Saudi Arabia is dreadful during peak hours.
Ask for recommendations before deciding; the best reviews come from people in the neighbourhood.
Consider purchasing used appliances and furniture; it will save you a ton.
Ask for any repairs, fresh paint, electric outlets, tiling etc., to be taken care of before moving in.
Don't:
Sacrifice security for a lower price. Outskirts tend to offer cheaper rent but are less safe. Research your neighborhood.
Move into the unit until you are completely satisfied with the work done. If they haven't completed the work needed, it will take twice as long after you move in.
Pay anything until you have a written lease agreement signed in your possession. Again, everything should be clear on the platform Ejar.
Dos and don'ts of compound living in Saudi Arabia
Do:
Expect a Western-style living arrangement where women can dress and interact in public as they please.
Expect a community made up entirely of foreigners. In many compounds, Saudis are even forbidden.
Expect to pay a lot for your accommodation.
Don't:
Break any rules; the compound has the right to terminate your lease at any time.
Shy away from asking questions and voicing concerns; it's your right
Limit yourself to the most popular compounds; newer and lesser-known compounds offer more for less money.
Tips for renting in Saudi Arabia
To make sure your move and settling into a new place goes smoothly, make sure to do lots of research before making any arrangements. Here are some basic strategies to follow:
If accommodation is part of your employment package and your employer is in charge of apartment hunting for you, still, make sure that you read through your rental contract before signing it. Make sure to have an English (or another language) copy of the original contract — and get it notarized as well.
Perform a proper inspection of the property before signing the lease. Make a list of all the furnishings and appliances in the apartment and take note if anything is damaged or in need of repair. AC units are a big part of life, so make sure yours are in good condition before you agree to move in.
The neighborhood you are about to rent in is just as important (if not more) as the property itself. Make sure to learn about the neighborhood you are about to rent in: check if all the amenities you need are easily accessible and that you feel comfortable in your new surroundings.
Save the receipt for your deposit until the end of your lease. You will need to present it to your landlord to get your security deposit back.
If you decide to rent outside the compound environment, do your best to follow local social norms. For instance, during the Holy Month of Ramadan, you will need to abstain from eating, drinking, playing loud music and smoking in public during the designated hours.
Once you've handled all the formalities, signed the lease, paid the deposit and rent, you will be ready to move into your new apartment. Most apartments advertised on real estate websites are ready to move in once the lease is signed. If you are renting in a compound, note that there may be a waiting list in place if the building you are moving into is particularly popular. In this case, you will need to time your move accordingly or book a hotel while you are waiting for your place to become available.
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