Saudi Crown Prince orders freeze on Riyadh rent hikes for five years

Saudi Arabia has announced a sweeping set of new rental market regulations for Riyadh, including a five-year freeze on annual rent increases for residential and commercial properties, following directives from Crown Prince Mohammed bin Salman.

The General Real Estate Authority said the measures, approved by the Council of Ministers and enacted by royal decree, are designed to address soaring housing and commercial rental prices in the capital and to bring greater balance, transparency, and fairness to the market.

Key measures include rent control for leased and vacant properties, contract registration and automatic renewals.

Rent freeze:

Effective September 25, 2025, landlords in Riyadh cannot increase total rent values on existing or new residential and commercial leases for five years. The rent freeze may later be extended to other cities or regions subject to approval by the Council of Economic and Development Affairs.

Vacant properties:

For residential and commercial units in Riyadh that were previously rented but are now vacant, the new rent must match the last recorded lease value.

Properties being leased for the first time will have their rents set by agreement between landlord and tenant.

Contract registration:

All rental contracts must be documented on the government’s “Ejar” platform. If a landlord does not register the contract, the tenant can request it be added.

Either party has 60 days to challenge the contract details with the General Real Estate Authority, after which the contract is considered valid.

Automatic renewals:

Rental contracts across the Kingdom will automatically renew unless one party notifies the other at least 60 days before the contract’s expiry. In Riyadh, landlords cannot refuse renewal if tenants wish to continue, except in three cases: non-payment of rent, structural safety issues supported by an official technical report, or if the landlord or an immediate family member requires the property for personal use.

Appeals:

Landlords may appeal rent values under specific conditions, such as if a unit underwent major structural renovations affecting its rental value, or if the last lease was signed before 2024. The Real Estate Authority will set the mechanisms for reviewing such appeals.

Fines and violations:

Violations of the new rules may result in fines of up to 12 months’ rent for the property in question, in addition to compensation for affected tenants.

Whistleblowers who report violations may receive up to 20 percent of collected fines, provided their information leads to a final ruling.

Civil law reference:

Where the new provisions are silent, the Civil Transactions Law will apply. The Cabinet may also amend the rules based on recommendations from the Council of Economic and Development Affairs.

Monitoring and enforcement:

The Real Estate Authority, in coordination with relevant agencies, will oversee enforcement of the new regulations, track rental price movements, and submit regular progress reports – including pricing and market indicators – to the Crown Prince. Authorities will also publish guidance to clarify the mechanisms for tenants and landlords.

Broader goals:

Officials said the measures mark a major step toward rebalancing Riyadh’s rental market, strengthening contractual fairness, and creating a secure, transparent investment environment that enhances quality of life and supports sustainable urban development.