Saudi Arabia has introduced major rental market reforms in Riyadh, including a five-year freeze on rent increases for residential and commercial properties. The new regulations aim to stabilise rental prices, improve market transparency, and support long-term real estate investment across the Kingdom.
The measures were approved by the Council of Ministers and authorized by royal decree, as part of wider housing and urban development reforms under Saudi Vision 2030.
Why Saudi Arabia Introduced New Rental Market Regulations
Riyadh has experienced significant population growth, economic expansion, and rising real estate demand in recent years. While this growth strengthened the property market, it also pushed rental prices higher for residents and businesses.
The new rules aim to:
- Stabilise housing and commercial rental costs
- Improve tenant protection and contract transparency
- Support sustainable real estate investment
- Strengthen market monitoring and data-driven policy decisions
Key Highlights of the New Riyadh Rental Regulations
1. Five-Year Rent Freeze
Effective 25 September 2025, landlords in Riyadh cannot increase total rent values for:
- Existing residential and commercial leases
- New lease agreements signed during the freeze period
Authorities may later expand the rent freeze to other Saudi cities, subject to government approval.
2. Rules for Vacant and New Properties
For previously rented units that are now vacant:
- New rent must match the last recorded lease value
For properties leased for the first time:
- Rent will be set based on mutual agreement between landlord and tenant
This ensures pricing stability while allowing flexibility for new market supply.
3. Mandatory Contract Registration via Ejar Platform
All rental agreements must be registered through the Ejar digital platform, Saudi Arabia’s official rental contract system.
Key rules include:
- Tenants can request registration if landlords fail to register contracts
- Both parties have 60 days to discuss contract details
- After 60 days, contracts become final and legally recognised
This strengthens transparency and reduces informal leasing practices.
4. Automatic Rental Contract Renewals
Across Saudi Arabia:
- Rental contracts automatically renew unless either party gives 60 days’ notice
In Riyadh specifically:
Landlords cannot refuse renewal unless:
- Tenant fails to pay rent
- Property has verified structural safety issues
- Landlord or immediate family requires the property for personal use
5. Appeals for Rent Adjustments
Landlords can request rent reviews under specific conditions, including:
- Major structural renovations increasing property value
- Contracts signed before 2024
Review mechanisms will be defined by the General Real Estate Authority.
6. Penalties and Compliance Measures
Violations may result in:
- Fines of up to 12 months’ rent value
- Compensation payments to affected tenants
Whistleblowers reporting violations may receive:
- Up to 20% of collected fines, if their report leads to a final ruling
Monitoring, Enforcement, and Legal Framework
The General Real Estate Authority will play a central role in overseeing the implementation of the new regulations. The authority will monitor rental price trends across Riyadh, track compliance across the real estate market, and submit regular performance and pricing reports to leadership to support data-driven policy decisions.
In cases where specific scenarios are not covered under the new regulations, Saudi Arabia’s Civil Transactions Law will apply. Authorities will also publish official guidance to help tenants and landlords clearly understand compliance requirements and regulatory procedures.
Long-Term Impact on Saudi Arabia’s Property Sector
The reforms are closely aligned with Saudi Arabia’s broader economic transformation strategy. They support sustainable urban development, contribute to improving quality of life for residents, and strengthen the Kingdom’s real estate investment environment.
In addition, the regulations enhance regulatory clarity for international investors, helping position Saudi Arabia as an increasingly attractive and stable real estate investment destination.
