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Riyadh Rent Reform: Five-Year Freeze and New Rules for Landlords and Tenants

Riyadh — 3 Rabi’ al-Thani 1447 AH (25 September 2025)

Introduction Following Crown Prince Mohammed bin Salman’s directive to restore balance to Riyadh’s real-estate market, the Royal Decree and Cabinet decision approved regulatory provisions to govern the landlord–tenant relationship in Riyadh. Below is a concise, website-ready summary for Saudisphere.

Key measures

  1. Five-year freeze on annual rent increases
  • Effective 25 September 2025, annual increases to total rent for residential and commercial leases (existing and new) inside Riyadh’s urban boundary are suspended for five years.
  • The Real Estate General Authority (REGA) may apply similar rules to other cities or districts by board decision with approval from the Council of Economic and Development Affairs.
  1. Rent rules for vacant and never-leased units
  • Previously leased units that become vacant: rent is fixed at the total amount charged in the last lease.
  • Units never leased before: rent is set by agreement between landlord and tenant.
  1. Mandatory registration on the “Ejar” platform
  • Landlords must register unregistered leases on the Ejar electronic platform; tenants may also request registration.
  • Either party can object to registered lease data with REGA within 60 days of notification; if no objection is filed, the recorded data is deemed correct.
  1. Automatic renewal with limited grounds for refusal
  • Leases nationwide renew automatically unless either party notifies the other at least 60 days before expiry that they do not wish to renew.
  • For properties inside Riyadh’s urban boundary, a landlord may not refuse renewal or force the tenant to vacate except in three cases: tenant nonpayment; structural defects affecting safety (confirmed by an authorized technical report); or landlord’s need for the unit for personal use or for a first‑degree relative.
  • REGA may add other permissible cases and set notice periods in model contracts.
  1. Landlord right to seek rent review
  • Landlords may object to the prescribed rent (except in existing contracts) if the unit underwent major structural renovations that materially affect rent value, if the last lease was signed before 2024, or in other cases defined by REGA. REGA will set procedures to handle objections.
  1. Violations and penalties
  • Violators face fines up to the equivalent of 12 months’ rent for the contracted unit, corrective measures, and compensation to affected parties.
  • REGA will publish a schedule of violations and fines and enforce penalties through committees formed under the Real‑Estate Brokerage Law. Decisions can be appealed to the competent judicial authority within 30 days.
  • Informants (non-enforcement personnel) who provide information that leads to a final proven violation may receive up to 20% of the collected fine; REGA will set reward distribution rules.
  1. Governing law and future amendments
  • Matters not covered by these provisions follow the Civil Transactions Law (Royal Decree M/191, 29/11/1444 AH).
  • The Cabinet may amend these rules upon recommendation from the Council of Economic and Development Affairs based on REGA reports.

Implementation and oversight

  • REGA will implement, monitor, and coordinate these measures with relevant authorities, publish explanatory guidance, and report regularly on prices and market indicators to ensure compliance and market stability.
  • The Crown Prince directed periodic reporting on implementation progress and market indicators to allow further adjustments if needed.

What this means

  • Tenants: greater rental stability and protection against unjustified eviction on renewal in Riyadh.
  • Landlords: temporary limits on rent increases, with defined channels to request reviews in specified cases; stricter registration and disclosure obligations.
  • Market: a step toward restoring balance, transparency, and sustainable urban development in Riyadh’s rental market.

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Disclaimer

The content on Saudisphere.com is for informational purposes only and does not constitute legal, financial, or professional advice. The summary provided here reflects the announced regulatory measures as of 25 September 2025 but is not a substitute for the official texts, regulations, or guidance issued by the Real Estate General Authority, the Cabinet, or other competent authorities. Readers should consult the full legal texts, seek professional legal or financial advice for specific situations, and verify any dates, deadlines, or procedures with official sources before taking action. Saudisphere and the author are not liable for decisions made based on this summary.