Saudi Arabia Announces Five-Year Rent Freeze In Riyadh To Stabilize Market

Saudi Arabia rent freeze Riyadh 2025 marks a historic step as the kingdom halts annual rent increases for residential and commercial properties in the capital city for five years. Effective from September 25, 2025, this decision follows directives from Crown Prince Mohammed bin Salman aiming to regulate landlord-tenant relations and stabilize soaring rent prices that have challenged Riyadh’s real estate market in recent years.

The regulation applies to both existing leases and new rental contracts within Riyadh’s urban boundaries. Landlords cannot raise rents during the freeze period, with similar measures potentially extended to other cities pending board approval. Vacant properties previously leased will have rents fixed at the last contract value, while newly leased units will have rents agreed mutually by landlords and tenants.

All rental contracts must be electronically registered in the government’s Ejar platform, with a 60-day objection period before contracts are considered valid. Lease agreements will renew automatically unless either party issues a non-renewal notice 60 days prior to expiry, except in cases like structural defects, non-payment, or personal use by landlords.

Landlords may appeal rent valuations in cases of major renovations or if previous leases predate 2024. Violation of the new rules may result in fines up to 12 months’ rent, alongside corrective actions and compensation for affected tenants. Whistleblowers reporting violations could receive up to 20% of collected fines.

The Real Estate General Authority will monitor market compliance, regularly report rental prices, and coordinate enforcement efforts to maintain market transparency and fairness. This landmark regulation supports Saudi Arabia’s broader Vision 2030 goals, fostering a fair, stable, and sustainable real estate investment environment while protecting the rights of all parties involved.