Saudi Arabia has suspended annual rent increases for both residential and commercial properties in Riyadh, introducing a sweeping five-year freeze that took effect on September 25, 2025. The decision, announced by the state-run Saudi Press Agency, follows directives from Crown Prince Mohammed bin Salman aimed at stabilizing the capital’s property market and protecting tenants.
The move comes after years of rising rental costs in the city, with authorities now seeking to regulate landlord-tenant relations more tightly. The Real Estate General Authority has been tasked with enforcing the new rules, monitoring compliance, and ensuring that rents remain steady throughout the period.
In addition to the freeze, lease contracts must now be recorded in the government’s electronic “Ejar” system, where parties are given a 60-day window to raise objections. Agreements that pass without dispute are automatically recognized as valid. The regulations also provide for automatic lease renewals unless one party gives at least 60 days’ notice before expiration.
For landlords making significant renovations or holding older contracts predating 2024, disputes over rental valuations may be appealed to a designated committee. Violations of the rules could lead to fines of up to 12 months’ rent, while whistleblowers may be entitled to a share of penalties collected.
The Crown Prince also ordered regular reporting of rental price indices and market updates, with the goal of maintaining balance in the sector. Authorities have stressed that the framework was developed after reviewing global best practices to ensure transparency, fairness, and investor confidence.
Officials emphasized that the changes mark a critical step in Riyadh’s urban development strategy, aiming to reinforce housing security and create a more sustainable, tenant-friendly rental environment.
