Saudi Arabia introduces five-year freeze on annual rent in Riyadh

Saudi Arabia introduces five-year freeze on annual rent in Riyadh

Saudi Arabia: Saudi Arabia has introduced new regulations for the rental market in Riyadh, including a five-year freeze on rent increases for both residential and commercial properties. The measures, approved by the Council of Ministers and enacted through royal decree following directives from Crown Prince Mohammed bin Salman, are intended to address rising rental costs in the capital and promote greater transparency and balance in the market.

From 25 September 2025, landlords in Riyadh will be prohibited from raising rent values on existing or new leases for a period of five years. For properties that become vacant, the new rent must match the last recorded lease value, while rents for first-time leases will be set through mutual agreement between landlords and tenants. The freeze could later be extended to other cities or regions subject to approval from the Council of Economic and Development Affairs.

Source: Economy Middle East