Saudi Arabia has introduced new rental regulations in Riyadh, freezing annual rent increases for both residential and commercial properties for five years starting 25 September 2025.
The decision, issued by Crown Prince Mohammed bin Salman and enacted by royal decree, aims to curb soaring prices and bring greater fairness to the capital’s rental market.
Under the new rules, landlords are prohibited from raising rents on existing or new contracts during the freeze. Vacant properties must be re-leased at the last recorded rent value, while first-time leases will be set by agreement between landlord and tenant.
All rental contracts must also be registered on the government’s “Ejar” platform, with contracts automatically renewing unless one party gives 60 days’ notice.
In Riyadh, landlords cannot refuse renewals if tenants wish to continue, except in cases of non-payment, safety risks, or personal use by the landlord or immediate family.
Violations may result in fines of up to 12 months’ rent, with whistleblowers entitled to up to 20 percent of collected penalties if their reports lead to a final ruling. Appeals on rent values will be permitted only under specific conditions, such as major renovations or older contracts signed before 2024.
The Real Estate Authority will monitor enforcement, track price trends, and provide guidance for tenants and landlords.
Riyadh’s rental and property markets have been under pressure from rapid demand, driven by population growth and urban expansion. In the second quarter of 2025, villa rents in Riyadh jumped 13.9 percent, and apartment rents rose 6.9 percent. Apartment prices in the capital have surged about 82 percent since 2019, while villa sale prices rose nearly 50 percent.
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