Saudi Arabia Plans to Expand Riyadh's 5-Year Rent Freeze Nationwide

  • 09/10/2025

Saudi Arabia is set to implement a nationwide ban on rent increases for residential and commercial properties, expanding a model first introduced in Riyadh. The Real Estate Authority announced it is preparing to extend the five-year rent freeze across the country, with a decision expected after a careful review of rental rates in other major cities. This initiative, originally ordered by Crown Prince Mohammed bin Salman, aims to stabilize the real estate market, protect tenants from soaring costs, and ensure fair competition.

The regulatory framework mandates that all lease agreements be registered on the government's "Ejaar" digital platform. For vacant properties that were previously rented, the cost will be capped at the value of the last registered contract, while rents for new, never-leased properties will be determined by mutual agreement between the landlord and tenant. The system includes a 60-day window for either party to raise objections before a contract becomes legally binding.

To ensure compliance, the Real Estate Authority will monitor the market and raise public awareness about the new laws. The policy also includes incentives for enforcement, offering whistleblowers up to 20% of the fine imposed for violations. This comprehensive approach is part of broader government efforts to support sustainable urban development and provide housing stability for residents across Saudi Arabia.

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