Saudi Arabia Short-Term Rental Market Review 2025: Revenue, Occupancy & Supply Growth

Written by: Jae Seok An, Founder, Airbtics
Published: January 22, 2026

Saudi Arabia Short-Term Rental Market Overview 2025

Average Occupancy Rate i
39.50%
Average Annual Revenue i
SAR36,305
Average Daily Rate (ADR) i
SAR249
YoY Supply Growth i
68.30%
YoY Revenue Change i
-3.18%
Markets Analyzed
4

Number of Airbnb Listings Changes in Saudi Arabia 2025

Which markets are experiencing rapid saturation?

A key consideration when entering a new short-term rental market is assessing whether it may become oversaturated. To evaluate this, we analyze the year-over-year supply change in Airbnb listings. The national average YoY supply change in Saudi Arabia was 68.30% in 2025, indicating the overall growth trajectory of the market.

Markets with Largest Absolute Supply Increases in Saudi Arabia

In absolute terms, Riyadh experienced the largest increase with +3,742 new listings added in 2025. This was followed by Jeddah (+1,506 listings) and Dammam (+743 listings).

Markets with Fastest Relative Growth in Saudi Arabia

In relative terms, Dammam experienced the most significant growth, with 99.20% more supply added over the 12-month period in 2025. Other rapidly expanding markets include Jeddah (+89.10%) and Riyadh (+50.41%).

Short-Term Rental Revenue Trend in Saudi Arabia 2025, and Future Outlook for 2026

Does increased supply necessarily indicate market saturation?

To assess market saturation, we examine year-over-year revenue trends. A decline in revenue per listing typically indicates heightened competition and potential oversaturation. The Saudi Arabia average YoY change in revenue was -3.18% in 2025, representing an increase from $11,468 in 2024 to SAR36,305 in 2025.

Top Markets Revenue Performance

Riyadh

SAR45,832 → SAR40,034 (-12.65% YoY)
🏰
Best Property Type Large (4+BD) • Budget ($)
🌍
Top Guest Origin United States
✈️
International Guests (vs Domestic) 33.0%
💰
Average Daily Rate SAR277
📊
Occupancy Rate 39.0%
📅
Seasonality High seasonality

Jeddah

SAR37,247 → SAR34,174 (-8.25% YoY)
🏰
Best Property Type Large (4+BD) • Budget ($)
🌍
Top Guest Origin United States
✈️
International Guests (vs Domestic) 57.0%
💰
Average Daily Rate SAR248
📊
Occupancy Rate 37.0%
📅
Seasonality High seasonality

Dammam

SAR32,977 → SAR31,839 (-3.45% YoY)
🏰
Best Property Type Large (4+BD) • Budget ($)
🌍
Top Guest Origin United States
✈️
International Guests (vs Domestic) 75.0%
💰
Average Daily Rate SAR245
📊
Occupancy Rate 35.0%
📅
Seasonality High seasonality

For more detailed revenue YoY change analysis by market, access the Airbtics dashboard to explore specific market performance metrics.

Easiest Markets for Hosts in Saudi Arabia 2025

Markets with high occupancy rates provide hosts with greater booking consistency, while markets with high booking volumes offer expanded opportunities across various property types and sizes.

Highest Occupancy Rate Markets in Saudi Arabia 2025

Madinah recorded a year-round occupancy rate of 47.00%, which is among the highest in Saudi Arabia. This was followed by Riyadh (39.00%) and Jeddah (37.00%).

Highest Booking Volume Market in Saudi Arabia 2025

Markets with high booking volumes present additional advantages, as they offer diverse opportunities across various property types and price points. The market that recorded the highest booking volume in Saudi Arabia is Riyadh, with approximately 1,589,764 nights booked in 2025.

Regulatory Landscape

We define a professionalized or strictly regulated market as one where over 50% of active Airbnb listings hold valid license information, indicating consistent enforcement and higher compliance. Markets below this threshold are considered unregulated or lenient.

In Saudi Arabia, 4 out of 4 markets fall into the professionalized / strict regulation category. For detailed license compliance data and market-specific regulatory insights, the Airbtics dashboard provides the percentage of listings with valid licenses for each market, enabling investors to assess regulatory risk at a granular level.

Which Saudi Arabia Markets Are Growing Healthily vs Overheating?

Understanding market saturation requires looking at both supply growth and revenue trends together. Markets are categorized by comparing their YoY supply and revenue changes against Saudi Arabia's national averages. Markets where supply is growing faster than revenue (relative to national averages) may be approaching saturation, while markets with below-average supply growth but above-average revenue growth may present hidden opportunities.

Benchmark: Markets are categorized relative to Saudi Arabia's national averages (Supply: 68.3%, Revenue: -3.2%). Markets above the national average are marked with ↑, while those below are marked with ↓.

🟢

Healthy Growth

Supply > avg, Revenue > avg
Expansion with demand keeping up

  • No markets in this category
🟡

Early Saturation

Supply > avg, Revenue ≤ avg
Competition rising

  • Dammam Supply: +99.2% | Revenue: -3.5%
  • Jeddah Supply: +89.1% | Revenue: -8.2%
🔵

Under-the-Radar

Supply ≤ avg, Revenue > avg
Hidden opportunities

  • Madinah Supply: +34.5% | Revenue: +11.6%
🔴

Declining

Supply ≤ avg, Revenue ≤ avg
Risky markets

  • Riyadh Supply: +50.4% | Revenue: -12.7%

For the latest updates of the market data in Saudi Arabia, check out our Best Airbnb Markets in Saudi Arabia.

Data methodology

All metrics are calculated using active short-term rental listings tracked weekly by Airbtics. Revenue, occupancy rate, ADR, and supply growth are estimated from historical booking calendars, listing activity, and proprietary aggregation models.

Source: Airbtics
Learn data methodology →

Cite this report

Airbtics (2026). Saudi Arabia Short-Term Rental Market Review 2025: Revenue, Occupancy & Supply Growth. https://airbtics.com/short-term-rental-market-report-2025-saudi-arabia

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