Five-Year Rent Freeze Comes Into Effect in Riyadh

Rent increases in Riyadh are frozen for a five-year period as new real estate rules come into effect. The framework applies to both residential and commercial properties within the city’s urban boundary, covering existing and new contracts.

The system caps rental values for the duration of the freeze. Vacant properties are priced according to their most recent registered contract, while units that have never been leased can be set freely by landlords and tenants. All leases must be registered on the Ejar platform, with a 60-day window for objections before data is confirmed. Contracts nationwide will now renew automatically unless either party gives at least 60 days’ notice before expiry.

Landlords in Riyadh are barred from refusing renewal if tenants wish to extend, except in cases of non-payment, safety issues caused by structural defects, or if the landlord intends to occupy the property themselves or for a first-degree relative. Appeals are permitted in limited situations, such as after significant renovations or when the previous contract predates 2024.

Violations carry fines of up to the equivalent of 12 months’ rent and compensation for tenants. Whistleblowers may receive up to 20% of the fine imposed. The Real Estate General Authority will oversee enforcement, monitor market activity, and submit regular reports to the Crown Prince. The framework may also be extended to other cities following approval from the Council of Economic and Development Affairs.