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In a decisive move to address soaring real estate prices and improve housing accessibility, Saudi Arabia has enacted a five-year rent freeze across Riyadh’s residential and commercial properties, effective September 25, 2025. This sweeping reform, enforced via royal decree, aims to bring stability to the rental market, ensure equitable relations between landlords and tenants, and support the Kingdom’s broader urban development goals.
The landmark policy follows an earlier directive by Crown Prince and Prime Minister Mohammed bin Salman, who in March 2025 ordered a comprehensive strategy to stabilise land and rental prices in the capital after sharp market hikes raised concerns about affordability and sustainable growth, a Saudi Gazette report said.
The new regulations, approved by the Council of Ministers, prohibit any increase in rental value, regardless of whether the contract is new or existing, for a period of five years within Riyadh’s urban boundary. This rule applies to all residential and commercial properties, and is viewed as a critical step to improve affordability, rein in inflationary pressures, and offer tenants long-term financial stability.
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Importantly, the framework may be extended to other cities and governorates, subject to assessment by the Real Estate General Authority and approval from the Council of Economic and Development Affairs.
In addition, vacant rental units will be priced at the most recent registered rent. For properties that have never been rented before, landlords and tenants are free to mutually agree on the initial rent. This gives flexibility for new property entries while ensuring price controls for existing stock.
To improve transparency, the reform mandates that all rental contracts be registered via the Ejar platform, a government-run digital system, either by the landlord or tenant. A 60-day window is provided for either party to file objections or amendments. If no dispute is raised within that period, the recorded contract data becomes final and enforceable.
This centralised registration system is expected to significantly reduce informal agreements, close loopholes, and support data-driven policymaking through accurate tracking of market dynamics.
Automatic lease renewals and tenant protection rules
A key aspect of the reform package is the introduction of standardized automatic renewal protocols across the Kingdom. Unless one party notifies the other at least 60 days before lease expiration, the contract will automatically renew under the same terms.
However, Riyadh introduces stricter tenant protections: landlords in the capital cannot deny renewal requests unless in the following cases:
- Tenant fails to pay rent
- The property has structural or safety defects
- The landlord or their first-degree relative intends to personally use the property
These provisions are designed to strengthen tenant rights and reduce forced evictions, especially in a market where rents have spiked in recent years.
Appeals and penalties for violations
Landlords may appeal fixed rents only in limited, defined scenarios, such as:
- Significant structural renovations
- Contracts signed before 2024
Violations of the rent control rules will carry fines of up to the equivalent of 12 months’ rent, with affected tenants also entitled to compensation. In a move to incentivise compliance, the government will award up to 20 per cent of any fine collected to whistleblowers who report illegal practices.
The Real Estate General Authority, in cooperation with other agencies, is tasked with enforcement and monitoring. It will also submit regular updates to the Crown Prince, tracking rent levels, regulatory compliance, and overall impact on the housing market.
Public awareness and policy alignment
Officials emphasised that the changes are part of a larger, long-term strategy to bring balance, transparency, and fairness to Saudi Arabia’s rapidly evolving real estate sector. The Crown Prince’s directives also stress the need for regular reporting and public awareness campaigns, ensuring that citizens and market participants understand their rights and responsibilities under the new regulations.
The goal, authorities said, is to safeguard the rights of both landlords and tenants, maintain market stability, and create a predictable regulatory environment that fosters sustainable urban development.
Foundations laid in March 2025: Land development and supply reforms
The five-year rent freeze is the latest in a series of reforms that began earlier this year. In March 2025, the Crown Prince issued wide-ranging directives following an in-depth market study by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs. These early measures were designed to:
- Curb surging land and rental prices
- Expand land availability
- Increase access to affordable housing
The reforms targeted two major undeveloped northern areas of Riyadh, lifting restrictions on land sales, purchases, subdivisions, and construction permits.
New development zones opened
The first newly opened zone spans 17 square kilometers, bordered by:
- King Khalid Road and Prince Mohammed bin Saad Road (West)
- Prince Saud bin Abdullah bin Jalawi Road (South)
- Asmaa bint Malik Street (North)
- Al-Arid District (East)
The second covers 16.2 square kilometers north of King Salman Road, between:
- Abi Bakr Al-Siddiq Road and Al-Arid District (East)
- Prince Khalid bin Bandar Road (North)
- Al-Qirawan District (West)
With these additions, total area released for development now stands at 81.48 square kilometres, including previously freed land totaling 48.28 square kilometres.
10,000–40,000 plots annually to boost supply
To further address housing demand, the Royal Commission for Riyadh City has been tasked with providing between 10,000 and 40,000 fully planned and developed residential plots annually over the next five years, based on actual market needs.
These plots will be offered to eligible Saudi citizens, specifically married individuals or those aged 25 and above with no previous property ownership, at prices not exceeding SAR1,500 per square metre.
Key conditions include:
- A 10-year restriction on selling, renting, or mortgaging the property (except for construction loans)
- If the buyer fails to construct a home within 10 years, the land will be reclaimed, and the purchase amount refunded
This measure is designed to ensure that land goes to end-users, not speculators, and is developed into actual housing stock within a reasonable timeframe.
Tax and regulatory reforms to follow
The March reform package also included fast-track deadlines for:
- Amending the White Land Tax Law within 60 days to encourage development
- Introducing regulations governing landlord-tenant relationships within 90 days to ensure fairness
Both the General Real Estate Authority and the Royal Commission for Riyadh City will oversee implementation and submit recurring progress reports, ensuring the market remains transparent and in alignment with national housing goals.
Paving the way for Vision 2030 housing goals
Combined, these measures mark one of the most aggressive and coordinated housing reform strategies in the Kingdom’s history. With a focus on:
- Price stability
- Increased housing supply
- Stronger tenant protections
- Transparent regulatory frameworks
Saudi Arabia is laying the groundwork for a more inclusive and sustainable real estate market, especially in Riyadh, which continues to play a central role in Vision 2030 and the country’s drive toward economic diversification.
