Saudi Arabia has introduced comprehensive rental market regulations in Riyadh aimed at stabilizing soaring rent prices and ensuring fairness between landlords and tenants. Following directives from Crown Prince Mohammed bin Salman, the new rules include a five-year freeze on rent increases, mandatory contract registration, automatic renewals, and strict enforcement measures to create a transparent, balanced, and stable rental environment.
Saudi Arabia freezes rent growth in Riyadh
Effective September 25, 2025, Saudi Arabia has imposed a five-year freeze on all rent increases within Riyadh’s urban boundaries for both residential and commercial properties. This freeze applies to existing contracts as well as new leases. The measure was enacted through a royal decree and approved by the Council of Ministers, following Crown Prince Mohammed bin Salman’s directive to curb the rapid rise in rental prices.The General Real Estate Authority (GREA) holds the power to extend this freeze to other cities or governorates if necessary, with approval from the Council of Economic and Development Affairs. The move seeks to stabilize the rental market and improve the quality of life for residents by preventing unchecked rent hikes.
Saudi regulations on contract registration and rental terms
A core part of the new framework mandates that all rental contracts be registered on the government’s Ejar digital platform, either by landlords or tenants. Once registered, the other party has 60 days to raise objections; if no objections are made, the contract becomes legally valid and binding. This system aims to create an official, transparent record of rental agreements and curb informal or unregulated deals.Regarding rental pricing:
- For properties that have been rented before, the rent must remain fixed at the value of the most recent registered contract.
- For units never leased before, the initial rent will be agreed upon mutually between landlord and tenant.
The regulations also provide for automatic renewal of rental contracts, unless either party gives at least 60 days’ notice before the lease ends. In Riyadh, landlords may only refuse renewal under limited conditions:
- Non-payment of rent
- Structural safety issues verified by an official technical report
- The landlord’s personal use of the property or use by a first-degree relative
Additional exceptions may be defined by the GREA in the future.
Enforcement, fines, and dispute resolution
Violations of the rental rules carry severe penalties to ensure compliance. Landlords who breach regulations may be fined up to 12 months’ rent for the property involved, alongside being required to rectify the violation and compensate affected tenants.A unique feature of the enforcement mechanism includes rewards for whistleblowers who report violations: they may receive up to 20 percent of the collected fine, provided their report leads to confirmed enforcement action.Disputes arising from the regulations can be appealed within 30 days of receiving fines, through the competent judicial authorities. Enforcement committees will determine penalties under Article 20 of the Real Estate Mediation Law.
Monitoring and long term impact on Riyadh’s rental market
The General Real Estate Authority is responsible for continuously monitoring the rental market, including rent prices and trends, to ensure the rules are properly implemented. The GREA will also publish clarifications, provide public awareness campaigns, and issue periodic reports on the rental market’s status to the Crown Prince.The reforms aim to:
- Enhance transparency and fairness in landlord-tenant relationships
- Prevent sudden rent hikes that harm tenants’ ability to secure housing
- Support sustainable urban development in Riyadh
- Improve residents’ overall quality of life
The regulations reflect the Crown Prince’s ongoing commitment to balancing real estate market dynamics and protecting all parties’ rights through clear, enforceable rules.
