Saudi Arabia Freezes Rent Hikes In Riyadh For 5 Years To Control Soaring Rental Prices

(MENAFN- Khaleej Times)

Saudi Arabia has introduced new rental market regulations for Riyadh. Following directives from Crown Prince Mohammed bin Salman, these rules include a five-year freeze on annual rent increases for both residential and commercial properties.

The General Real Estate Authority stated that the regulations are designed to address the soaring housing and commercial rental prices in the capital, aiming to bring greater balance, transparency, and fairness to the market.

Recommended For You UAE researches AI use in cloud seeding for precise rain enhancement

Other measures include mandatory registration of rental contracts in the Ejar system, automatic contract renewal rules, and clear conditions under which landlords can refuse renewal. The regulations also set fines for violations and provide a framework for resolving disputes, aiming to ensure fairness, transparency, and stability in the city's rental market.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

Fixed rent for vacant properties

Under the new rules, rent for previously leased properties will be fixed at the rate of the last contract. For properties that have never been rented, the rent will be determined through mutual agreement between the landlord and tenant. This ensures consistency and transparency in rental pricing.

Mandatory contract registration in Ejar

All rental contracts must now be registered in the Ejar electronic system. Landlords and tenants have 60 days to raise objections to contract details, after which the contract is considered valid. This step is designed to create a reliable and official record of all rental agreements.

Automatic renewal and renewal conditions

Rental contracts in Riyadh will now renew automatically unless either party notifies the other at least 60 days before the contract ends. Landlords cannot refuse renewal except in cases such as non-payment, structural safety issues, or the landlord's personal use of the property. This protects tenants while giving landlords limited, justified exceptions.

Right to object to rent adjustments

Landlords may challenge the fixed rent under certain conditions, such as if major renovations have been made or if the last contract was signed before 2024. Additional conditions may be determined by the General Authority for Real Estate, which also oversees objections and sets regulations for these cases.

Fines and enforcement

Violations of the new rules carry fines of up to 12 months' rent, alongside required corrections and compensation to affected tenants. Reporting violations may earn a reward of up to 20 per cent of the collected fine. Disputes can be appealed in court within 30 days of receiving a fine.

What the rental regulations aims

These regulations aim to create a fair, transparent, and stable rental market in Riyadh. The General Authority for Real Estate will monitor compliance, provide guidance, and issue clarifications as needed. The reforms also support sustainable urban development and improve the overall quality of life for residents.

MENAFN25092025000049011007ID1110112276