In a significant policy shift, Saudi Crown Prince Mohammed bin Salman has mandated a five-year freeze on rent increases for both residential and commercial buildings in Riyadh. This decision, reported by the state-run SPA news agency, is designed to curb the rising cost of living and bring stability to the capital's real estate market. The move is seen as a major benefit for expatriates and residents alike.
The new regulations include several key measures to ensure fairness and transparency. These include mandatory registration of all leases on the government's "EJAR" electronic platform, automatic lease renewal unless a 60-day notice is given, and a system that bases rents for vacant units on the last agreed-upon price. The Real Estate General Authority will oversee the implementation and has the power to impose fines of up to 12 months' rent for violations.
This initiative is part of a broader effort to create a balanced and sustainable rental market. The Crown Prince has ordered regular reporting on market conditions to inform future decisions, underscoring a commitment to protecting the rights of both tenants and landlords while supporting urban development and investment in the city.
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