Saudi Arabia Implements Five-Year Rent Freeze in Riyadh
On September 25, 2025, Saudi Arabia enacted a significant policy aimed at stabilizing the rental market in Riyadh. A royal decree has established a five-year rent freeze on both residential and commercial properties throughout the capital. This initiative is part of broader reforms directed by Crown Prince and Prime Minister Mohammed bin Salman to address rising housing costs.
Details of the Rent Freeze
The Council of Ministers approved this measure, which prohibits any increase in rental prices for properties within Riyadh’s urban boundaries. This freeze applies to both existing leases and new contracts, ensuring that tenants will not face unexpected hikes in their rent over the next five years. The Real Estate General Authority has the authority to extend these regulations to other cities and governorates, pending approval from the Council of Economic and Development Affairs.
Fixed Rent for Vacant Properties
For vacant properties in Riyadh, the rent will be set at the value of the most recent registered contract. In cases where a property has never been rented, landlords and tenants are free to negotiate the initial rent. This approach aims to create a more predictable rental environment, benefiting both landlords and tenants.
Registration and Objection Process
All rental agreements must be registered through the “Ejar” platform, which serves as a centralized system for managing rental contracts. Landlords and tenants have a 60-day window to raise objections to any contract. If no objections are filed within this timeframe, the contract data will be considered valid, streamlining the rental process.
Automatic Lease Renewals
The new regulations also introduce automatic renewal procedures for lease agreements. Contracts will automatically renew unless one party provides a 60-day notice prior to the expiration date. In Riyadh, landlords are generally required to renew leases if tenants wish to extend, with a few exceptions. These exceptions include situations involving non-payment, safety concerns due to structural defects, or if the landlord intends to use the property for personal purposes or for a first-degree relative.
Appeals and Violations
Landlords have the option to appeal fixed rents under specific circumstances, such as after making renovations or if the last contract was signed before 2024. Violations of these regulations can result in fines equivalent to up to 12 months’ rent, along with compensation for affected tenants. Additionally, whistleblowers who report violations may receive up to 20% of the imposed fine as a reward.
Oversight and Compliance
The Real Estate General Authority will oversee the enforcement of these new regulations, collaborating with other agencies to monitor rent levels and ensure compliance. Regular reports will be submitted to the Crown Prince, reflecting the ongoing progress of these measures. This oversight is part of a broader commitment to maintain balance in the real estate sector and protect the rights of all parties involved in rental agreements.
Continuous Monitoring and Public Awareness
The Real Estate General Authority has been tasked with continuously monitoring rental prices and market trends to ensure adherence to the new regulations. They will also clarify the details of the Crown Prince’s directive and explain the mechanisms in place to the public. Awareness campaigns will be conducted to inform both landlords and tenants about their rights and responsibilities under the new framework.
A Turning Point for Riyadh’s Rental Market
Officials believe that these measures represent a pivotal moment for the rental market in Riyadh. The goal is to restore balance, enhance transparency, and create a fair environment that supports urban development and improves the quality of life for residents. By implementing these regulations, Saudi Arabia aims to foster a more stable and equitable housing market in the capital, addressing the concerns of both tenants and landlords alike.
