Saudi Arabia Freezes Rent Increases in Riyadh for Five Years to Stabilize Market

Saudi Arabia has introduced a landmark decision to freeze rental hikes in Riyadh for the next five years, a move aimed at stabilizing the housing market and ensuring fairness for both tenants and landlords.

The directive was issued by Crown Prince and Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud and approved by royal decree. Officials say the move comes at a time when soaring rental costs have been a growing concern for residents and businesses.

Effective immediately, there will be no annual increases in rent on either new or existing contracts within the city’s urban boundaries. The freeze applies to both residential and commercial properties.

The Real Estate General Authority said the reform will bring greater transparency and balance to the rental sector. Authorities will monitor the rollout closely and hinted that the policy could be extended to other regions in the future if needed.

Under the new regulations, rents for vacant residential or commercial units in Riyadh must match the value of the last registered contract on Ejar, the Kingdom’s official leasing platform. This measure is intended to prevent arbitrary pricing and speculation.

From now on, all lease contracts must be registered on the Ejar system. Either landlords or tenants may initiate registration, but any disputes must be raised within 60 days. The mandatory registration is expected to standardize and digitalize lease agreements across the capital.

In addition, all rental contracts across the Kingdom will now automatically renew unless either party provides 60 days’ notice. However, landlords in Riyadh will only be allowed to refuse renewal in limited circumstances, such as non-payment, safety issues, or using the property for personal purposes.

The reforms also introduce strict penalties for violations. Landlords found breaching the rules may face fines equivalent to up to 12 months’ rent. At the same time, whistleblowers who report illegal practices could receive financial rewards, creating an incentive for compliance.

Analysts view the measure as part of Saudi Arabia’s broader economic reforms under Vision 2030, aimed at improving the quality of life in urban centers while protecting both investor and resident interests.

The rent freeze in Riyadh is being hailed as one of the most significant housing reforms in recent years. It is expected to bring immediate relief to tenants, encourage long-term stability in the property market, and serve as a model for potential adoption across other Saudi cities.