One of the prominent issues in the real estate field is the annual increase in property rents, it’s directly related to economic changes such as real estate inflation and maintenance costs. The rent freeze in Riyadh came as a result of these challenges to solve them immediately. So, let’s discover what this system means and how it works.
What is the Rent Freeze in Riyadh ?
The Saudi cabinet declared new regulatory provisions that aim to organize and regulate the relationship between the landlord and the tenant.
Basically, it encompasses stopping the annual rental increases in residential and commercial properties value, specifically in Riyadh for 5 straight years. These provisions were activated on 25th of september/2025.
In other words, it means preventing the landlord from increasing the total rent of the property, whether in the current or new contracts.
Reasons for Establishing the Rent Freeze in Riyadh
According to REGA (Real Estate General Authority), this provision came as a tool to achieve the authority plan. It embodies the balancing supply and demand, in addition to increasing the real estate inventory in the capital.
After implementing the rent freeze in the capital, the authority spotted multiple violations, such as:
- Requesting property eviction without a legal justification.
- Submitting non-renewable requests without valid reason.
- Attempts to raise the overall property value.
- Payments made outside the Ejar Platform .
- Failing to register contracts through the platform.
It’s worth mentioning that these violations are one of the key reasons why this provision was established, which contributes to enhancing the real estate security procedures.
The Importance of the Rent Freeze
The rent freeze in Riyadh is not only a normal provision or decision, it embodies starting a new phase that opens new horizons in the real estate market.
Since establishing this provision, the authorities aimed to create a fair floor that gathers the landlord and the tenant. In addition to accomplishing the stabilization of society during their residential period and their demands.
In addition to all what we mentioned above, a plenty of additional importances follow the establishment of this decision, such as:
Long Duration to Achieve Stability
This provision gives the tenant a long duration extending till 5 years to achieve stability, in addition to protecting him from sudden increases. At the same time, it provides the investor a clear road to build his project confidently in a stable environment.
Controlling Real Estate Inflation
The rent freeze will contribute to controlling the real estate inflation and decrease the life costs pressure. This enhances household purchasing power and supports consumption in other sectors.
International Investments Attraction
This decision helps to attract global investors, they look for organized transparent markets with clear regulations, leading to building their project in a high investment security environment.
Reducing Residential Mobility
It exceeds the economical role, actually, it impacts directly the social aspect, through reducing the residential mobility because of sequenced rental increases. Additionally, it bolsters family stability in a balanced urban environment.
Curbing Real Estate Speculation
From an urban perspective, stopping annual rent hikes helps control real estate speculation and promotes equitable housing distribution across cities. Also, it supports Saudi 2030 vision aim of creating sustainable and high quality urban living.
The Latest New Regulatory Provisions
The authorities created multiple regulatory provisions to organize the relationship between landlords and tenants, such as:
Fixing the Rent Value for Vacant Properties
For previously rented residential and commercial vacant properties, the rent is fixed based on the last recorded rental contract, guaranteeing transparency between landlord and tenant.
As for properties that have not been previously rented, their value is determined by mutual agreement between the parties. It is emphasized that no arbitrary increase is allowed upon renewal or new leasing, which helps stabilize the market and protect the rights of all parties.
Contract Registration through “Ejar” Platform
Contract registration through “Ejar” Platform became an obligatory step for both parties, every party can register the contract through it.
At that moment, the other party has 60 days as a grace period to object to any information in the contract. If there was no objection, this means that these information are correct and registered, ensuring on protecting both parties rights.
Regulating the Automatic Contract Renewal Mechanism
These provisions regulate the automatic contract renewal mechanism. The new contract will be renewed automatically if none of the both parties notified their intention not to renew the contract before 60 days.
Also, there are some exceptions for this mechanism, such as contracts with 90 days or less remaining at the time the regulations take effect. In addition to cases where both parties mutually agreed to terminate the contract.
Also read about: How to Renew a Rental Contract through the Ejar Platform?.
FAQs about Rent Freeze in Riyadh
Here are the most frequently asked questions about the rent freezing:
Can the Landlord Increase the Rent Annually?
No, According to the rent freeze in Riyadh provision he can not increase it for straight 5 years.
Is the Rent Freeze Only Applied in Riyadh?
This decision is only implemented in Riyadh for now, but it is capable of spreading across other cities.
Ultimately, the rent freeze in Riyadh is one of these decisions and provisions that you can discover with Bayut Blog to protect both parties in real estate procedures, including all the rights and obligations that they have to follow.
