Saudi Gazette report
RIYADH — Saudi Arabia has introduced sweeping new regulations for Riyadh’s rental market, freezing rent increases for both residential and commercial properties for the next five years in a bid to stabilize housing costs and ensure fairness between landlords and tenants.
The measures, approved by the Council of Ministers and enacted through a royal decree, follow directives from Crown Prince and Prime Minister Mohammed bin Salman, who earlier ordered reforms to address sharp rent hikes in the capital.
Under the new rules, which took effect on Thursday, September 25, 2025, the total rental value of properties—whether in existing or new contracts—cannot be increased for five years within Riyadh’s urban boundary. The same framework could be extended to other cities and governorates if deemed necessary by the Real Estate General Authority with the approval of the Council of Economic and Development Affairs.
Vacant properties in Riyadh will have their rent fixed at the value of the most recent registered contract. For units that have never been rented, landlords and tenants may agree on the initial rent freely.
All contracts must be registered through the “Ejar” platform, either by landlords or tenants, with a 60-day window for objections. If no objection is raised, the contract data will be deemed valid.
Automatic renewals will also be regulated: lease agreements nationwide will be renewed unless one party notifies the other at least 60 days before expiry. In Riyadh, landlords cannot refuse renewal if tenants wish to extend, except in three cases: non-payment, structural defects affecting safety, or the landlord’s intent to use the property personally or for a first-degree relative.
The new regulations also allow landlords to appeal fixed rents in limited circumstances, such as after significant renovations or if the last contract was signed before 2024.
Violations will carry fines of up to the equivalent of 12 months’ rent, alongside compensation for affected tenants. Whistleblowers can receive up to 20 percent of the fine as a reward for reporting violations.
The Real Estate General Authority will oversee enforcement in cooperation with other agencies, monitor rent levels, and submit regular reports to the Crown Prince.
This is in line 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 so as to ensure the effective implementation of the regulatory procedures designed to govern the relationship between landlords and tenants.
The Real Estate General Authority has been instructed to continuously monitor rental prices and market trends to ensure compliance as well as to implement any necessary adjustments warranted by circumstances. The authority and other relevant authorities will clarify details of the Crown Prince's directive and will explain the mechanisms that are in place in this regard in addition to carrying out awareness campaigns.
Officials said the measures mark a turning point in Riyadh’s rental market, aiming to restore balance, increase transparency, and provide a safe and fair environment that supports sustainable urban development and quality of life.
