By Hussein Hazzazi

Okaz/Saudi Gazette

JEDDAH — Despite the citywide decline in the cost of rent, the owner of the rented building that housed Jeddah's Al-Amal Hospital gave the Health Affairs one week to evacuate the premises unless it agreed to hike the annual rent by SR2 million.

Informed sources told Okaz/Saudi Gazette that the building owner had asked the health affairs to increase the rent from SR6.55 million to SR8.515 million as of Jamad Al-Awwal 1 (Jan. 7, 2019).

Sources said the demand to increase the rent was in violation of the contract signed with the Health Affairs, which transferred the matter to the General Authority of State Property to review the owner's demand and to determine whether it complied with the terms of the contract.

Sources said the current condition of the real estate market is not consistent with the demand for any rent hike.

Al-Amal Hospital, which is specialized in addiction treatment, is housed in a building located in Al-Naeem district in north Jeddah. The Health Affairs rented the building more than 20 years ago.

A source in the Health Affairs told Okaz/Saudi Gazette that the owner had the right to increase the rent in accordance with the applicable regulations.

He said the rental contract is subject to rules and regulations governing the lease contracts by the state.