Saudi Crown Prince Mohammed bin Salman ordered a five‑year freeze on rent increases across Riyadh, applying to both residential and commercial properties and taking effect on 25 September 2025.
The package requires all leases to be registered on the government’s Ejar digital platform, enforces automatic renewals unless 60 days’ notice is given, and fixes rents for previously let vacancies at their last registered level; rents for units never leased remain subject to mutual agreement between landlord and tenant.
Enforcement provisions include fines of up to 12 months’ rent, compensation for affected tenants and a whistleblower reward of up to 20% of collected fines; landlords may contest fixed rents only in limited circumstances such as major renovations or contracts signed before 2024.
Authorities framed the move as a corrective measure after rapid post‑pandemic rental growth in the capital and as part of broader regulatory reforms to improve market transparency and affordability; the Real Estate General Authority will monitor compliance and may recommend extending measures to other cities.
Implementation will rely on registered contract data, administrative oversight and public awareness campaigns to reduce informal arrangements and protect tenant rights, while landlords and market participants evaluate legal and commercial implications.
The freeze is expected to reshape landlord‑tenant relations in Riyadh over the coming years and will be closely watched for its impact on investment, housing supply and market dynamics.
Crown Prince Mohammed bin Salman Picture BANDAR AL-JALOUD for AFP picturedesk.com via heute.at
