Saudi Arabia has introduced new regulations aimed at stabilising Riyadh’s rental market by freezing rent increases for five years across both residential and commercial properties. The measures, which took effect on September 25, 2025, were approved by the Council of Ministers and enacted through a royal decree following directives from Crown Prince and Prime Minister Mohammed bin Salman.
Under the new framework, the rental value of properties within Riyadh’s urban boundary cannot be increased during the five years, whether for new or existing contracts. The Real Estate General Authority may extend the same rules to other cities and governorates with approval from the Council of Economic and Development Affairs.
For vacant properties, rent will be fixed at the most recent registered contract value. Units that have never been rented remain open to initial agreements between landlords and tenants. All contracts must be registered through the “Ejar” platform, with a 60-day window for objections. If no objection is filed, the contract data will be considered valid.
Automatic lease renewals will also be standardised. Nationwide, contracts will renew automatically unless one party gives notice at least 60 days before expiry. In Riyadh, landlords cannot refuse renewal if the tenant wishes to extend, except in three cases, such as failure to pay rent, structural issues affecting safety or the landlord’s decision to occupy the property personally or for a first-degree relative.
Landlords may appeal fixed rents only in limited circumstances, such as after significant renovations or if the previous contract was signed before 2024. Violations of the regulations can result in fines of up to the equivalent of 12 months’ rent, in addition to compensation for affected tenants. Whistleblowers who report violations may receive up to 20 per cent of the imposed fine.
The Real Estate General Authority will oversee enforcement, monitor rental prices and provide regular reports to the Crown Prince on implementation progress and market indicators. The authority has also been instructed to conduct awareness campaigns and clarify the mechanisms of the directive.
Officials said the measures are designed to restore balance between landlords and tenants, improve transparency and support sustainable urban development in Riyadh.