New regulations have been announced for Riyadh’s rental market, with rent increases being frozen for residential and commercial properties for the next five years. The move aims to stabilise housing costs and ensure fairness between landlords and tenants, said a report.
The measures were 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.
As per the new rules which came into effect on 25 September, the total rental value of properties – whether in existing or new contracts – cannot be increased for five years within Riyadh’s urban boundary. The 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, the report added.
The initiative will see vacant properties in Riyadh 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, the report added. Lease agreements nationwide will be renewed unless one party notifies the other at least 60 days before expiry. In Riyadh specifically, 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 report also said that under the new regulations, landlords can appeal the fixed rents in limited circumstances, such as after significant renovations or if the last contract was signed before 2024.
Fines for violations can be up to the equivalent of 12 months’ rent, alongside compensation for affected tenants. Whistleblowers can receive up to 20% 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, the report stated.
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.
