Saudi Arabia has implemented a five-year rent freeze across Riyadh’s residential and commercial properties through a royal decree that took effect on Thursday, September 25, 2025.
The Council of Ministers approved the measures following directives from Crown Prince and Prime Minister Mohammed bin Salman, who had ordered reforms to tackle rent increases in the capital, the Saudi Gazette reported.
The regulations prohibit any increase in rental values for properties within Riyadh’s urban boundary for five years, covering both existing and new contracts. The Real Estate General Authority can extend this framework to other cities and governorates with approval from the Council of Economic and Development Affairs.
Saudi Crown Prince Mohammed bin Salman orders Riyadh rent freeze to control housing costs
Vacant properties in Riyadh will have rents fixed at the value of the most recent registered contract. For units that have never been rented, landlords and tenants can agree on initial rent freely.
All rental contracts must be registered through the “Ejar” platform by either landlords or tenants, with a 60-day window for objections.
Contract data will be deemed valid if no objection is raised within this period.
The new rules establish automatic renewal procedures nationwide, with lease agreements renewed unless one party provides 60 days’ notice before expiry.
In Riyadh, landlords cannot refuse renewal if tenants wish to extend, except in three circumstances: non-payment, structural defects affecting safety, or the landlord’s intent to use the property personally or for a first-degree relative.
Landlords can appeal fixed rents in limited cases, such as after renovations or if the last contract was signed before 2024.
Violations will carry fines equivalent to up to 12 months’ rent, plus compensation for affected tenants. Whistleblowers can receive up to 20 per cent of the fine as a reward for reporting violations.
The Real Estate General Authority will oversee enforcement with other agencies, monitor rent levels, and submit reports to the Crown Prince.
“This is in line with the directive of the Crown Prince to submit periodic reports on the progress of implementing these measures, including reports on rental prices and relevant real estate indicators. This reflects his keen interest in maintaining balance in the real estate sector and safeguarding the rights of all parties so as to ensure the effective implementation of the regulatory procedures designed to govern the relationship between landlords and tenants,” the report said.
The Real Estate General Authority has been instructed to monitor rental prices and market trends continuously to ensure compliance and implement adjustments warranted by circumstances.
The authority and other agencies will clarify details of the Crown Prince’s directive and explain the mechanisms in place, in addition to carrying out awareness campaigns.
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 urban development and quality of life.
