Saudi Arabia Freezes Rent Increases in Riyadh for Five Years Amid Property Surge

When It Takes Effect:
From September 25, 2025 onward, the new freeze applies.

What It Covers:

• The freeze applies to both residential and commercial properties within Riyadh’s urban boundary.

• Landlords will no longer be allowed to increase rent for existing or new leases during this five-year period.

• For vacant properties, the rent is capped to the value of their last registered rent.

• Contracts must be registered under the Ejar platform (Saudi’s official lease registration system).

• Leases will have automatic renewal, unless either party gives 60 days’ notice.

• Landlords found violating the rules may face fines up to 12 months’ rent, and compensation to tenants.

• Whistleblowers who report violations may receive 20% of the collected fines as reward.

Why It Happened:

• Rent surges in Riyadh have been steep: villa rents rose ~13.9% year-on-year, and apartment rents ~6.9% in Q2 2025. 

• Property sale prices have also ballooned: apartments up ~82% since 2019; villa prices up ~50%.

• The move is part of regulatory efforts to stabilize the housing market, protect tenants, and ensure balanced development amid rapid urban growth.