Saudi Arabia's new rent rules: What the 5-year freeze means for landlords, tenants

Riyadh: Saudi Arabia’s Crown Prince Mohammed bin Salman has ordered a freeze on rental prices for both commercial and residential properties in Riyadh for the next five years. This decisive move aims to address the rapid surge in rent following the coronavirus pandemic and the kingdom’s ongoing large-scale development projects.

The freeze, effective from September 25, 2025, prohibits any rent increases on existing or new leases within Riyadh’s urban boundaries. The regulations also include strict penalties for violators, with fines up to the equivalent of one year’s rent plus compensation for tenants affected by unauthorised rent hikes. To encourage enforcement, whistleblowers can receive up to 20% of the collected fines as a reward.

Under the new rules, vacant properties will have their rent fixed at the value of the most recent lease registered in the government’s Ejar platform. For properties that have never been leased, landlords and tenants may mutually agree on rents. Additionally, rental contracts must be electronically registered to ensure transparency and accountability.

The Real Estate General Authority will oversee the implementation and monitoring of these measures in collaboration with other government agencies. They will also submit periodic reports to the Crown Prince on rental trends and compliance to maintain market balance.

With inputs from AP