In a landmark decision, Crown Prince Mohammed bin Salman has introduced new property rent regulations in Riyadh. The new rules freeze residential and commercial property rents in Riyadh for the next five years. This initiative seeks to stabilize rental prices and cultivate a just and transparent property market in the capital. This decision has a direct impact on expatriates who are working or residing in Saudi Arabia, who rent their homes or run businesses on leased properties. Notably, there is a large population of Indian residents who will benefit from this.
The General Real Estate Authority explained that the cabinet and royal directives were aimed at controlling the increase in housing and commercial rents in the capital and to bring more balance, transparency, and fairness to the market. The law includes rent control in addition to renewals and property registration.
The new law came into effect on September 25, 2025. Following this, landlords in Riyadh are prohibited from increasing existing or new rents for five years. The rent for vacant properties should equal the previous lease value. The rent for properties being leased for the first time will be determined through an agreement between the landlord and tenant.