The step comes after housing costs in the capital have escalated sharply, with villa rents rising 13.9 per cent and apartment rents climbing 6.9 per cent year-on-year in the second quarter. Meanwhile, property sale prices have surged by roughly 82 per cent for apartments and 50 per cent for villas since 2019.
Under the new rules, any vacant property will be locked to its last registered contract value. For properties never leased, landlords and tenants may negotiate a price, subject to regulatory oversight. Lease agreements must be registered via the national Ejar digital platform, with a 60-day window for objections before contracts become legally binding. Contracts with under 90 days remaining at the time of implementation are exempt, and mutual terminations agreed within notice periods are unaffected.
Renewal is automatic unless either party gives 60 days’ notice. Landlords can refuse renewal only under three conditions: tenant non-payment, documented structural safety concerns, or personal use by the landlord or immediate family. The General Authority for Real Estate may set additional exceptions in future.
Landlords may petition for higher rents under limited circumstances—for example, when significant renovations materially increase property value or when previous contract data precedes 2024. Appeals will be heard by designated committees under the Real Estate Mediation Law, with decisions appealable to judicial authority within 30 days.
Whistleblowers who report confirmed violations may be awarded up to 20 per cent of the collected fines. Fines will also be accompanied by orders to rectify the breach and compensate affected tenants.
This regulatory move aligns with the Crown Prince’s broader ambition to stabilise the housing sector while advancing Saudi Arabia’s Vision 2030 economic diversification goals. With large infrastructure and megaprojects concentrated in Riyadh, the city has seen intense inward migration and real estate demand.
Analysts had flagged that rents in the more exclusive northern districts of Riyadh had leapt by 50–60 per cent in recent years, putting middle-income residents under growing strain. Property consultancy Knight Frank noted that roughly 250,000 Saudi nationals migrated to Riyadh over the past five years, supplemented by expatriate inflows, exacerbating supply constraints.
To discourage land hoarding and stimulate construction, the government has recently increased taxes on undeveloped “white land,” particularly plots exceeding 5,000 sqm. These fiscal measures aim to accelerate housing supply—an essential complement to the rent freeze.
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Saudi Arabia