Saudi Arabia Freezes Riyadh Rent Increases Five Years

Saudi Arabia ordered a five-year freeze on rent increases for residential and commercial properties within Riyadh, effective Sept. 25, 2025, under a royal decree directed by Crown Prince Mohammed bin Salman. The suspension bars annual rent increases for existing and new contracts, fixes rents for previously leased vacant units at their last registered Ejar value, and leaves units never rented before to mutual agreement between landlord and tenant. Leases must be registered on the government Ejar platform and are automatically renewed unless either party gives at least 60 days' notice, with specified exceptions allowing landlords to refuse renewal and penalties for violations. The Real Estate Authority is charged with enforcement and monitoring and may extend the measures beyond Riyadh with approval. The decree is accompanied by supply-side steps — including higher annual fees on undeveloped land to spur construction — aimed at easing shortages driven by Vision 2030 megaprojects. Officials estimate Riyadh needs roughly 120,000–130,000 new housing units annually to meet growing demand.