Saudi Crown Prince Orders Five-Year Freeze on Riyadh Rent Hikes

Riyadh, Saudi Arabia – September 25, 2025: Saudi Arabia has introduced a comprehensive set of rental market reforms aimed at addressing soaring residential and commercial rents in the capital. The measures include a five-year freeze on rent increases for both residential and commercial properties in Riyadh, following directives issued by Crown Prince Mohammed bin Salman.

The sweeping reforms, approved by the Council of Ministers and enacted by royal decree, are designed to bring greater balance, transparency, and fairness to the city’s rapidly growing rental market. The General Real Estate Authority will oversee implementation and enforcement.

Officials described the reforms as a key step toward strengthening contractual fairness, enhancing quality of life, and creating a secure and attractive environment for investment in Riyadh’s urban housing sector.

Five-Year Rent Freeze

Effective September 25, 2025, landlords in Riyadh will be prohibited from increasing total rent values on existing or new residential and commercial leases for the next five years.

The freeze applies across all areas of Riyadh and could later be extended to other cities or regions, subject to approval by the Council of Economic and Development Affairs.

This measure directly targets sharp rent hikes that have strained households and businesses, providing much-needed stability for tenants amid the city’s population growth and urban development surge.

Regulations for Vacant Properties

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

For properties being leased for the first time, rent can be freely negotiated between landlords and tenants without restrictions.

This regulation aims to curb speculative price increases on vacant units while allowing flexibility for brand-new properties entering the market.

Mandatory Contract Registration

All rental agreements must now be documented on the government’s “Ejar” digital platform.

If a landlord fails to register a contract, tenants will have the right to request its addition to the system. Both parties will then have 60 days to challenge the contract details with the General Real Estate Authority. If no challenge is raised, the contract will automatically be deemed valid.

This measure is intended to increase transparency and reduce disputes in rental dealings.

Automatic Lease Renewals

Rental contracts across the Kingdom will now automatically renew unless one party provides at least 60 days’ notice before the contract’s expiry.

In Riyadh specifically, landlords cannot refuse to renew a lease if the tenant wishes to continue occupancy, except under three strict conditions:

• Non-payment of rent by the tenant.
• Structural safety concerns, backed by an official technical report.
• Personal use by the landlord or their immediate family member.

This policy strengthens tenant protections and ensures stability for long-term residents and businesses.

Appeals Process for Rent Values

Landlords will be able to appeal rent values in limited circumstances, such as:

• When a property undergoes major structural renovations that significantly increase its rental value.
• When the last lease was signed before 2024, and the price is no longer reflective of market conditions.

The General Real Estate Authority will set clear mechanisms for reviewing and deciding on these appeals.

Fines and Incentives for Reporting Violations

Violations of the new rental regulations will carry serious penalties. Landlords found in breach could face fines of up to 12 months’ rent for the property in question, in addition to compensation for affected tenants.

To encourage compliance, whistleblowers who report violations may receive up to 20% of collected fines, provided their information leads to a confirmed ruling.

Legal Framework and Oversight

Where the new regulations are silent, the Civil Transactions Law will apply.

The Cabinet retains the authority to amend or expand the rules, based on recommendations from the Council of Economic and Development Affairs, ensuring the framework remains adaptable as market conditions evolve.

The General Real Estate Authority, in coordination with other relevant agencies, will:

• Monitor rental price trends.
• Track compliance across the market.
• Publish clear guidance for both tenants and landlords.
• Submit regular progress reports, including pricing indicators and enforcement data, directly to the Crown Prince.

Broader Goals for Riyadh’s Housing Market

Officials have positioned these reforms as part of a broader strategy to rebalance Riyadh’s rental market, which has faced growing pressure due to the city’s rapid population growth, business expansion, and urban development.

The measures aim to:

• Provide stability for residents and businesses.
• Increase market transparency and accountability.
• Support sustainable urban growth in line with the goals of Saudi Vision 2030.

By curbing runaway rent hikes and improving contractual protections, Saudi Arabia is laying the groundwork for a more fair and secure rental ecosystem, positioning Riyadh as a leading global city for both living and investment.

Read more: Saudi Arabia sets new land fee zones in Riyadh to balance property market