Saudi Arabia Cost of Living Analytics

Living expenses and utilities

Basic Utilities (85m²)

$98

Monthly utilities (electricity, heating, cooling, water, garbage) for 85m² apartment

Mobile Phone Plan

$35

Mobile phone monthly plan with calls and 10GB+ data

Internet (60 Mbps)

$73

Internet (60 Mbps or more, unlimited data) monthly cost

Average Monthly Salary

$2,221

Average monthly net salary after tax

Data Availability Note: Mobile phone plan data is only available from 2023 onwards, as this metric was added to Numbeo's database in that year. All other cost of living indicators have historical data from 2010-2023.

Basic Utilities (85m²)

Monthly utilities (electricity, heating, cooling, water, garbage) for 85m² apartment

Mobile Phone Plan

Mobile phone monthly plan with calls and 10GB+ data

Internet (60 Mbps)

Internet (60 Mbps or more, unlimited data) monthly cost

Average Monthly Salary

Average monthly net salary after tax

Additional Insights

Expert analysis of Saudi Arabia Cost of Living trends and investment implications

Market Overview

Saudi Arabia's real estate market offers robust investment opportunities driven by strategic economic diversification under Vision 2030. With competitive rental yields and a growing population, the market is poised for significant growth, although investors should remain cautious of economic fluctuations and regulatory changes. The tax environment is favorable, enhancing net returns on property investments.

Key Findings

Data-driven insights

•House prices have grown at an average of 4.5% annually since 2010, outpacing GDP growth which averaged 2.7% over the same period.
•Rental yields in Riyadh and Jeddah are approximately 6.5%, with mortgage interest rates around 3.8%, allowing for positive cash flow opportunities.
•Population growth is projected at 2.3% annually, while housing supply growth is lagging at 1.5%, indicating potential market demand-supply imbalance.
•The price-to-income ratio stands at 7.2, indicating slightly high property prices relative to local incomes, affecting affordability.

Market Trends

Historical patterns

•The ongoing economic diversification under Vision 2030 is likely to drive real estate demand.
•Increased foreign investor interest due to relaxed ownership regulations.
•Growing urbanization with a focus on smart cities and infrastructure development.

For Investors

Actionable takeaways

•Top opportunities include investing in mixed-use developments, residential properties in Riyadh, and commercial real estate in NEOM.
•Watch for risks such as potential regulatory shifts, economic dependence on oil, and currency fluctuations affecting foreign investments.
•Best property types are luxury apartments and family homes, given the growing expatriate population.
•Consider buying now to capitalize on current growth trends and before potential interest rate hikes.

Market Context

Compared to regional peers like the UAE, Saudi Arabia offers a burgeoning real estate market with more room for growth, albeit with higher regulatory and economic risks. Its strategic location and ambitious economic plans provide a unique investment proposition for both institutional and individual investors.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.