RIYADH: Rents for furnished apartments in Riyadh have jumped by an estimated 50 percent during summer vacations, a phenomenon that happens every year as vacationers drive up demand, investors said. The monthly rent for a large, two-room apartment has risen by 40 percent; the daily rent has risen by about 50 percent and there has been a 40-percent rise in the daily rent for a one-room apartment. A tour by Okaz/Saudi Gazette found that a number of visitors were angry over the rent hikes and said the charges were not commensurate with the apartments' standards of hygiene and services. They called on the Ministry of Commerce and Riyadh Mayoralty to carry out inspection tours to monitor the charges and standards of hygiene in rental apartments across Riyadh. Saad Al-Marshad, an investor, said the rents for furnished apartments of all sizes have risen with the beginning of the summer vacation due to the increased number of visitors in all the Kingdom's regions. He said the daily rent for a medium-sized, two-room apartment has risen from SR130 two weeks ago to SR200, while the monthly rent has risen to SR3,500, up from SR2,500 before the holiday season. Al-Marshad said the rise in rents also reflects the services provided at furnished apartments, which are comparable to those provided in large hotels. Saad Al-Shaman, a Saudi national from Hafr Al-Batin, said rent during the summer vacations is always high in Riyadh. He pointed out that he visits the city several times a year for different reasons and concluded that the rent hikes are not justified. Al-Shaman called on the Ministry of Commerce and Industry, and authorities such as the Saudi Commission for Tourism and Antiquities (SCTA) to monitor and set the rents for furnished apartments throughout the year, which he said would end the rampant price-fixing. A research report has estimated that in the next 10 years, Saudi Arabia's hospitality sector needs investments totaling more than SR1.1 billion.
