Thursday, September 25, 2025
Saudi Arabia Freezes Rent hikes in Riyadh: New 5-Year Rental Rules Explained
Saudi Arabia has introduced new rental rules in Riyadh, stopping rent increases for both homes and businesses for the next five years. The goal is to control housing costs and make renting fair for both landlords and tenants.
The new rules were approved by the Council of Ministers and issued through a royal decree, following orders from Crown Prince and Prime Minister Mohammed bin Salman. He had earlier called for action to stop steep rent rises in Riyadh. Trending: Saudi Arabia allows employment of expatriates dependents
Key Points of the New Rules (effective from September 25, 2025):
➤ Rent prices for all properties in Riyadh—whether old or new contracts—cannot increase for five years within the city’s urban area.
➤ The system may later expand to other Saudi cities and governorates if the Real Estate General Authority and the Council of Economic and Development Affairs approve it.
➤ Empty properties will have their rent fixed at the value of the last registered contract. For properties that have never been rented, landlords and tenants can freely agree on the first rent price.
➤ All rental contracts must be registered on the “Ejar” platform. Landlords or tenants can register, and there is a 60-day period to raise objections. If no objection is made, the contract becomes valid.
Lease Renewals:
🔘 All lease agreements across the country will automatically renew unless one side gives notice at least 60 days before the end date.
🔘 In Riyadh, landlords cannot block a tenant from renewing unless:
1. The tenant has not paid rent,
2. The property has structural safety issues, or
3. The landlord or a close family member (first-degree relative) needs to use the property. Most Viewed: Saudi Arabia introduced new land tax to balance real estate market in Riyadh
Exceptions and Appeals:
🔹 Landlords can request to change fixed rents in special cases, such as after major renovations or if the last contract was signed before 2024.
Penalties:
👉 Breaking the rules can lead to fines of up to 12 months’ rent plus compensation for tenants.
👉 Whistleblowers who report violations may receive up to 20% of the fine as a reward.
Enforcement and Oversight:
■ The Real Estate General Authority will enforce the rules with help from other agencies.
■ It will track rent prices, watch market trends, and send regular reports to the Crown Prince.
■ Awareness campaigns will explain the rules to the public and ensure everyone understands their rights and duties.
Officials say these new measures are a major change for Riyadh’s rental market. They aim to bring stability, transparency, and fairness and to support sustainable urban growth and a better quality of life. Join Saudi Expatriates channel on Telegram
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| Saudi Arabia Freezes Rent hikes in Riyadh New 5-Year Rental Rules Explained |
