In a sweeping move to tackle soaring rental prices and bring much-needed stability to its capital’s property market, Saudi Arabia has imposed a five-year freeze on residential and commercial rent increases in Riyadh. The decision, which took effect immediately on Thursday, September 25, 2025, follows a royal decree issued by Crown Prince Mohammed bin Salman and was swiftly approved by the Saudi Cabinet, according to reporting from Alarabiya and the official Saudi Press Agency (SPA).
The freeze comes as part of a broader set of measures aimed at rebalancing Riyadh’s rental market, which has seen a surge in both housing and commercial rental prices in recent years. The city, now home to more than 8.6 million people (nearly half of whom are foreigners), has experienced a construction boom fueled by the Vision 2030 plan. This ambitious initiative, spearheaded by the Crown Prince, seeks to diversify Saudi Arabia’s economy away from oil by launching multi-billion dollar megaprojects that have drawn workers and investors from around the world.
According to the General Authority for Statistics, residential rents in Riyadh jumped 7.6 percent year-on-year as of August 2025. The government’s response, as outlined by the General Real Estate Authority, is designed to curb inflation, increase the availability of housing and commercial units, and foster a more transparent and equitable rental market for both tenants and landlords.
“The move will limit inflation and expand supply in the property market,” said Tayser al-Mufarrej, spokesman for the Real Estate General Authority, in an interview with Alarabiya. He also emphasized that the five-year duration was chosen to allow authorities to measure the impact of the freeze on rental prices and housing supply. Al-Mufarrej added that if residential rents continue to rise to what he described as “unreasonable” levels, the rent control measures could be expanded to other regions of Saudi Arabia.
The new regulations apply to all residential and commercial properties within Riyadh’s urban boundaries, covering both leased and vacant units. For vacant properties that were previously rented, landlords must set the new rent at the same value as the last lease. Properties being leased for the first time will have their rental value determined by agreement between the landlord and tenant. “The landlord may not increase the total rent value of the property agreed upon in existing or new contracts,” the SPA reported, quoting the official royal decree.
To ensure transparency and compliance, all rental contracts must be registered on the government’s “Ejar” electronic leasing platform. Both landlords and tenants are authorized to initiate registration, and either party has 60 days to challenge the details with the Real Estate Authority. If a landlord fails to register the contract, tenants can request that it be added to the system. Rental contracts across the Kingdom will now automatically renew unless one party notifies the other at least 60 days before the contract’s expiry.
The rules also provide protections for tenants wishing to renew their leases. In Riyadh, landlords cannot refuse renewal if tenants wish to continue, except in cases of non-payment, structural safety risks supported by an official report, or when the landlord or an immediate family member requires the property for personal use. Landlords do, however, have the right to appeal rent values if a unit has undergone major structural renovations that affect its rental value, or if the last lease was signed before 2024. The Real Estate Authority will establish procedures for handling such appeals, with a dedicated committee to oversee dispute resolution.
Violations of the new rules carry significant penalties. Landlords found breaching the regulations may face fines of up to 12 months’ rent in addition to compensation owed to tenants. Whistleblowers who report violations may be rewarded with up to 20 percent of collected fines if their information leads to a final ruling. The Real Estate Authority, in coordination with other agencies, will be responsible for enforcing the new rules, tracking price movements, and reporting progress directly to the Crown Prince.
To help landlords and tenants navigate the new system, the government has pledged to publish clear guidance and educational materials. The Real Estate Authority also plans to monitor the implementation of the regulations, report on market trends, and coordinate enforcement with relevant bodies. These steps are seen as crucial to building a transparent investment environment that supports sustainable urban development in the capital.
The rental freeze is set against a backdrop of intense demand for housing in Riyadh. In June, Minister of Municipal Rural Affairs and Housing Majed bin Abdullah Al-Hogail noted that the city needs between 120,000 and 130,000 new housing units annually to keep up with demand. The government has also taken steps to encourage residential construction, such as increasing annual fees on undeveloped land in Riyadh to 10 percent of the property’s value in April 2025.
Low-rise buildings and villas make up the majority of housing units in Riyadh, where construction cranes have become a common sight. The hope among officials is that the rent freeze, combined with other regulatory and fiscal measures, will stabilize the market and make the city more livable for both Saudi nationals and the large expatriate community.
The reforms represent a pivotal shift in the way Riyadh’s rental market operates. By freezing rent increases, mandating transparent electronic registration, and establishing clear rules for renewals and appeals, authorities aim to protect tenants, encourage investor confidence, and ensure long-term affordability as the city continues to grow. As the Real Estate Authority put it, these measures are “a major step toward rebalancing Riyadh’s rental market, strengthening contractual fairness, and building a transparent investment environment that supports sustainable urban development.”
As the dust settles on this landmark decision, all eyes will be on Riyadh to see whether the freeze succeeds in bringing relief to tenants and stability to the property market, or whether further interventions will be needed as the city pursues its ambitious transformation under Vision 2030.