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Saudi Crown Prince Orders Five-Year Freeze on Riyadh Rent Hikes
Saudi Arabia has introduced major rental market reforms in Riyadh, including a five-year freeze on rent increases for both residential and commercial properties, following directives from Crown Prince Mohammed bin Salman. These real estate regulations in Riyadh aim to stabilize the rental market and ensure fairness for tenants and landlords..
Riyadh Rent Freeze: Key Measures
The General Real Estate Authority (REGA) confirmed that the new rules, approved by the Council of Ministers and enacted through a royal decree, are designed to curb rising rents and promote transparency in Riyadh’s property market.
Effective Rent Cap in Riyadh
Starting September 25, 2025, landlords in Riyadh cannot increase rent on existing or new leases for the next five years. This residential and commercial rent cap may later expand to other cities subject to government approval.
Rules for Vacant Properties
- Previously rented units now vacant: Rent must match the last registered lease value.
- First-time leased properties: Rent is agreed upon by the landlord and tenant, providing flexibility while keeping the market fair.
Mandatory Contract Registration
All rental agreements must be registered on the Ejar platform. If landlords fail to register contracts, tenants can request registration. Both parties have 60 days to dispute contract details with the General Real Estate Authority, after which contracts are legally binding.
Automatic Lease Renewals
Landlords may appeal rent values under specific conditions, such as major property renovations or leases signed before 2024. Violating the new regulations can result in fines up to 12 months’ rent and compensation for tenants. Whistleblowers reporting violations may receive up to 20% of collected fines.
Monitoring, Enforcement, and Guidance
The Real Estate Authority will oversee enforcement, track Riyadh rent trends, and report regularly to the Crown Prince. Authorities will provide clear guidance for tenants and landlords to navigate the new rules.
Monitoring, Enforcement, and Guidance