In a major move to stabilize the housing market, Saudi Arabia has announced a five-year freeze on rent increases for all residential and commercial properties within Riyadh’s city limits. The directive, issued under the leadership of Crown Prince Mohammed bin Salman, took effect on September 25, 2025.
Quick Facts
- Policy: Rent freeze in Riyadh for 5 years
- Effective Date: September 25, 2025
- Applies To: Residential & commercial properties
- Rent Increases: Prohibited until 2030
- Exceptions: Non-payment, safety issues, or landlord’s own use
- Platform: All contracts must be registered via Ejar
- Penalty: Up to 12 months’ rent fine for violations
Key Highlights of the New Regulation
- Fixed Rent Rates: Landlords must keep rent at the most recently registered contract value, even for vacant units.
- Applies to New and Existing Contracts: No increases will be allowed for the next five years.
- Mandatory Registration: All lease contracts must be registered through the Ejar platform, with a 60-day window for objections.
- Automatic Renewals: Rental contracts will renew automatically unless either party provides 60 days’ notice to terminate.
- Limited Exceptions: Rent increases may only occur in cases of non-payment, structural safety concerns, or when the landlord (or a close family member) needs the property.
- Penalties for Violations: Landlords who break the rules could face fines of up to 12 months’ rent, with compensation awarded to tenants. Whistleblowers may receive 20% of the fine collected.
Why This Matters
The decision follows a sharp rise in property prices across Riyadh. In the second quarter of 2025, villa rents surged 13.9% year-on-year, while apartment rents rose 6.9%, straining affordability for many residents.
By freezing rent hikes, the government aims to alleviate financial pressure on families, promote fairness in the rental market, and support sustainable urban development as part of Vision 2030.
Oversight and Next Steps
The Real Estate General Authority (REGA) will oversee implementation, ensure compliance, and evaluate whether similar rent control measures should be extended to other Saudi cities.
This landmark decision positions Riyadh as a test case in Saudi Arabia’s efforts to balance rapid urban growth with affordability and tenant protection.
For newcomers adjusting to life in Riyadh, learning how to create an Absher account and registering your national address are equally important steps in managing daily life. If you’re exploring relocation, you can also check our guide to the cost of living in major Saudi cities for a detailed comparison.
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Owais Qarni is a Co-Founder, Chief Editor, and Author of Saudi Scoop. He is passionate about tech, cars, and traveling. A Dreamer, Explorer & Optimist!
