Riyadh Rent Burden Drops to 15% of Household Income

The share of household income spent on rent in Riyadh has fallen to about 15%, down from more than 17.5% in September 2025, according to Real Estate General Authority CEO Abdullah Al-Hammad.

Speaking at the Legal Aspects of Governance Conference at King Saud University, Al-Hammad said the decline was among the results recorded after a series of measures were introduced to ease pressure in the capital’s property market.

He added that the most financially vulnerable households had previously been spending more than 30% of their income on rent.

Recent measures include a five-year freeze on annual rent increases for existing and new residential and commercial lease contracts within Riyadh’s urban boundary.

For vacant properties that have been leased before, the total rent is fixed at the amount recorded in the most recent Ejar contract. For properties being rented for the first time, the rent is determined by agreement between landlord and tenant.

The rules also extend the notice period for landlords who do not intend to renew a standard residential lease because they plan to use the property personally or for a first-degree relative.

In those cases, tenants must receive at least 365 days’ notice before the lease expires. If notice is given later, the lease is extended until a full year has passed from the date of notification.