In a historic move to stabilize the real estate market, authorities have announced a Saudi Arabia rent freeze in Riyadh, effective from September 25, 2025. This unprecedented initiative freezes rental prices for both residential and commercial properties for five years, reflecting the Kingdom’s commitment to safeguarding tenant and landlord rights while promoting sustainable urban development.
Background and Objectives
The royal decree, endorsed by the Cabinet and directed by Crown Prince Mohammed bin Salman, comes in response to surging rents in the capital. The initiative aims to:
- Prevent excessive rent increases that burden tenants.
- Ensure fair competition in the rental market.
- Strengthen transparency between landlords and tenants.
- Support sustainable urban growth in Riyadh.
The freeze represents a broader effort by Saudi authorities to regulate the property market in line with global best practices.
Implementation Details
The new regulations introduce a structured framework for rental agreements:
- Fixed rental values: Rents for previously leased units are locked at the last registered contract value.
- Vacant properties: For properties never leased, rental rates remain negotiable between landlord and tenant.
- Mandatory registration: All lease agreements must be submitted on the government’s Ejar digital platform, with both parties having 60 days to object before validation.
- Automatic renewal: Leases are automatically renewed unless one party provides at least 60 days’ notice before contract expiration.
Certain exemptions apply:
- Contracts with less than 90 days remaining at the time of implementation.
- Leases terminated by mutual agreement after the notice period.
In Riyadh, landlords cannot refuse lease renewal unless there is:
- Non-payment of rent.
- Verified structural safety concerns.
- Personal use of the property by the landlord or immediate family.
The General Real Estate Authority (GREA) retains the authority to define additional exceptions in the future.
Handling Objections and Violations
Landlords may contest the fixed rental values under specific conditions, such as:
- Significant property renovations.
- Lease agreements predating 2024.
- Other cases approved by the authority.
The GREA will review objections and determine resolutions. Violations of the rent freeze carry strict penalties:
- Fines up to 12 months’ rent.
- Obligation to correct violations and compensate affected tenants.
- Appeals can be submitted within 30 days to the competent judicial authority.
Additionally, whistleblowers who provide information leading to confirmed violations may receive up to 20 percent of the collected fine.
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Broader Implications and Future Extensions
The Riyadh rent freeze is the first of its kind in Saudi Arabia and could extend to other cities and regions with approval from the Council of Economic and Development Affairs. By stabilizing rental prices, the Kingdom aims to prevent market volatility while promoting long-term urban planning and investment in sustainable housing projects.
Key Benefits
- Tenant protection: Prevents abrupt rent hikes and improves housing affordability.
- Market transparency: Standardizes lease agreements through the Ejar platform.
- Economic stability: Encourages long-term planning for landlords and investors.
- Urban development: Aligns with Riyadh’s vision for sustainable and structured city growth.
The measures also encourage responsible landlord behavior, ensuring that rental markets operate fairly while supporting the Kingdom’s vision for economic diversification.
Technological Integration
The mandatory use of the Ejar digital platform reflects Saudi Arabia’s commitment to leveraging technology in regulatory enforcement. By digitizing lease contracts, authorities can efficiently monitor compliance, track market trends, and maintain transparency between all parties involved.
Conclusion
Saudi Arabia’s decision to implement a five-year rent freeze in Riyadh marks a transformative step toward stabilizing the real estate market. By prioritizing tenant and landlord rights, standardizing contracts through digital platforms, and aligning with sustainable urban development goals, the Kingdom is setting a new benchmark for housing policies in the region. This bold move not only protects citizens from soaring rents but also fosters a fair, transparent, and sustainable rental market, laying the foundation for long-term economic growth and social stability.
