In a significant step towards stabilizing housing costs, Saudi Arabia has enacted a five-year freeze on rent increases in residential and commercial properties across Riyadh. This royal decree, effective as of September 25, 2025, aims to protect tenants and promote affordability in the capital’s real estate market, ensuring that rental expenses remain predictable in an ever-evolving economic landscape.
The Council of Ministers approved this landmark decision following directives from Crown Prince and Prime Minister Mohammed bin Salman, as outlined by the Saudi Gazette reported. The measures target the rampant rent increases that have burdened residents, reflecting the Crown Prince’s commitment to housing reforms in Riyadh.
Under these new regulations, there will be no rent increases for properties within Riyadh’s urban boundary for five years, encompassing both new and existing leases. Additionally, the Real Estate General Authority is empowered to expand this framework to other cities or governorates with the approval of the Council of Economic and Development Affairs.
Details of the Rent Freeze Regulation
For vacant properties in Riyadh, rents will be fixed at the amount of the most recent registered lease. For units that have never been rented, landlords and tenants are free to negotiate initial rental agreements. This flexibility aims to promote a fair rental environment while maintaining the integrity of the rent freeze in Riyadh for the next five years.
All rental agreements need to be registered through the “Ejar” platform, which serves to streamline contract management. Both landlords and tenants are given a 60-day window for any objections, ensuring transparency and accountability in the rental process. If no objections occur within this timeframe, the contract data will be considered valid.
Automatic Renewal Procedures
The newly established framework also incorporates automatic renewal procedures nationwide. Lease agreements will renew automatically unless one party issues a 60-day notice of intent not to renew. In Riyadh, landlords are generally prohibited from refusing renewal requests from tenants, except under specific circumstances: failure to pay rent, serious structural defects, or the landlord’s intention to occupy the property themselves or for a close relative.
Landlords do retain limited rights to appeal fixed rents, particularly if substantial renovations have been completed or if the last contract was signed before 2024. However, any violations of these rental regulations will result in consequences, with fines of up to 12 months’ rent levied, along with compensation for affected tenants. Whistleblowers are incentivized to report infractions, receiving up to 20% of the imposed fine as a reward.
Enforcement and Oversight
The enforcement of this rental freeze in Riyadh falls under the purview of the Real Estate General Authority, which will collaborate with various agencies to monitor market conditions and adherence to the new regulations. Reports will be submitted regularly to the Crown Prince, in line with his directive to ensure these measures are effectively implemented and that rental prices remain in check.
“This aligns with the directive of the Crown Prince to submit periodic reports on the progress of implementing these measures, including reports on rental prices and relevant real estate indicators. This reflects his keen interest in maintaining balance in the real estate sector and safeguarding the rights of all parties,” the report stated. Continuous monitoring of rental prices and market trends will help the authority remain responsive to changing conditions and enforce compliance effectively.
Officials have emphasized that these measures signify a pivotal transformation within Riyadh’s rental market, aiming to restore equilibrium, enhance transparency, and create a stable environment that fosters urban development and improves the quality of life for residents.