In a bold move to stabilize its real estate market, Saudi Arabia has implemented a five-year rent freeze across Riyadh, covering both residential and commercial properties, effective September 25, 2025. Enforced via royal decree, the policy aims to improve housing affordability, protect tenants, and support sustainable urban development.
The decree prohibits any rent increase for existing or new contracts within Riyadh’s urban boundaries. Vacant units will be priced at the most recent registered rent, while new properties can be set through mutual agreement. All contracts must be registered on the government-run Ejar platform, ensuring transparency and reducing informal agreements.
Automatic lease renewals are now standardized, with landlords only able to deny renewal under limited circumstances, such as non-payment or property safety concerns. Violations of the rent freeze carry fines up to 12 months’ rent, with whistleblowers eligible for up to 20% of penalties collected.
This reform follows a broader March 2025 strategy by Crown Prince Mohammed bin Salman to curb surging rents and expand land supply. Two new development zones totaling 33.2 square kilometers have been opened, with plans to offer 10,000–40,000 residential plots annually to eligible citizens at controlled prices.
These measures, combined with tenant protections and transparent regulations, represent Saudi Arabia’s most coordinated effort to date to balance housing supply and affordability, aligning with Vision 2030 goals of sustainable urban growth and economic diversification.
