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Home Real Estate Policies

The New Rent Control Decision in Saudi Arabia: Why The Effective Decision Focuses on Riyadh

Saudi Arabia’s rent control introduces a 10% rent cap in Riyadh to stabilize housing costs and ensure fair pricing for both tenants and landlords.

5 October، 2025
in Real Estate Policies, Properties News
Rent Control

Contents

  • 1 When Does the Rent Control Decision Take Effect, and Does It Apply to All Cities?
  • 2 Does the Decision Cover Long-Term Contracts Signed Before It Took Effect?
  • 3 Practical Differences: Riyadh vs. Other Cities Under the Rent Control Decision
  • 4 What Does “Fixing the Rent of a Vacant Property” Mean in Riyadh?
  • 5 How Do I Document My Contract? And Why Use Ejar?
  • 6 What Are Legitimate Cases to Challenge the Rent Value in Riyadh?
  • 7 What Impact Does the Rent Control Decision Have on Landlords and Tenants?
  • 8 How Should I Prepare to Benefit from the Rent Control Decision?
  • 9 Frequently Asked Questions About the Rent Control Decision.
  • 10 Sources

The rent control decision aims to regulate the relationship between landlords and tenants, bringing balance to the real estate market, preventing unjustified price increases, and preserving the rights of both parties. In Riyadh, the key decision is to freeze the annual rent increase for existing and new residential and commercial leases for a period of five years, starting from September 25, 2025. All contracts must be documented via the Ejar platform and overseen by the General Real Estate Authority.

In the rest of the Kingdom, rent is determined by supply and demand, as well as mutual agreement (with proper documentation), allowing the market to retain flexibility. This measure works in conjunction with other regulatory tools described in the “Real Estate Balance Platform” (Tawazon), which provides terms and registration steps as a reference for both landlords and tenants.

When Does the Rent Control Decision Take Effect, and Does It Apply to All Cities?

The halt to annual rent increases in Riyadh begins on September 25, 2025, and extends for five years. It includes both residential and commercial contracts, provided they are electronically documented via Ejar and monitored by the General Real Estate Authority. In other cities, there is no general freeze; increases are allowed but must be agreed upon and documented under the new rental framework. To understand how these control policies intersect with boosting supply, it is essential to review analyses of the White Lands Fee System (White Lands Tax) and its objectives and impact.

Rent Control

Does the Decision Cover Long-Term Contracts Signed Before It Took Effect?

Contracts documented prior to this decision are unaffected; their agreed-upon annual increases remain valid. New contracts entered after the decision are subject to the freeze, meaning the rent stays fixed for the contract’s full term without annual increases.

Situation Example Outcome
Before the decision A tenant in 2023 signs a 5-year lease starting at 100,000 SAR in year one, increasing to 110,000 SAR, then 120,000 SAR, and so on. The increases agreed remain in force.
After the decision A tenant in 2026 signs a 5-year lease starting at 100,000 SAR with planned increases. No increases are applied; rent remains 100,000 SAR throughout.

Practical Differences: Riyadh vs. Other Cities Under the Rent Control Decision

Regulatory Item Riyadh Other Cities
Start of application Freeze of annual increase from September 25, 2025, for five years No general freeze; increases per agreement
Annual rent increase Suspended for existing and new residential/commercial contracts Permitted via agreement and documented in Ejar
Pricing of vacant property If previously rented: fixed at last documented contract amount; if new: set by mutual agreement Each unit is priced anew per negotiation and market forces
Renewal and notice Automatic renewal unless one party gives a 60-day nonrenewal notice The same rule applies in all cities
Nonrenewal by landlord Limited to defined cases: late payment, misuse, or need of the property for the landlord or a first-degree relative Requires a 60-day notice and applies standard legal cases

This distinction aims to provide price stability in the capital while allowing other cities to remain flexible. The flexibility benefits from supply drivers discussed in the White Lands system over the medium term. Rent Control

What Does “Fixing the Rent of a Vacant Property” Mean in Riyadh?

If the property had been rented before, its rent is fixed at the value stated in the last documented contract during the rent control period. If the property had never been rented, the rent would be set by mutual agreement at the time of the first contract. This prevents unjustified jumps and ensures realistic pricing for newly rented units consistent with real estate balance.

How Do I Document My Contract? And Why Use Ejar?

Documenting your contract via the Ejar platform gives it legal weight, links it to payment services, and facilitates dispute resolution through authorities such as the General Real Estate Authority. Undocumented contracts lose many advantages. Hence, regular synchronization of contracts is recommended, along with following the updates through the Real Estate Balance platform’s terms and steps.

What Are Legitimate Cases to Challenge the Rent Value in Riyadh?

A landlord may request a review of rent value in specific cases, such as:

  • Carrying out substantial improvements or renovations that objectively raise property value
  • Demonstrating that the current rent is below comparable units during 2024
  • A decision by a designated committee to adjust the value based on announced criteria

These controls complement incentives to address the supply side, as detailed in the White Lands System discussions.

What Impact Does the Rent Control Decision Have on Landlords and Tenants?

For landlords: More stability in occupancy, fewer annual negotiation rounds, and an incentive to improve maintenance and services rather than rely on rent hikes. For tenants: Budget clarity and protection from surprise annual increases in Riyadh, while preserving negotiation opportunities in other cities. To prepare a balanced plan, link control concepts (as in the Real Estate Balance platform) with incentives to boost supply (as in the White Lands System).

How Should I Prepare to Benefit from the Rent Control Decision?

  1. Document or register all contracts in Ejar
  2. Review expiration dates and send/receive a 60-day nonrenewal notice if needed
  3. Maintain a record of maintenance and invoices for any value objection or dispute.
  4. Prepare standard legal forms in advance, such as the Eviction Notice Form, to preserve your rights.
  5. Compare neighborhoods and prices, explore alternatives on sa.aqar.fm, and enable alerts for matching offers.

Rent Control

Frequently Asked Questions About the Rent Control Decision.

What is the new rent law/system?

It is the regulatory framework known as the “rent control decision,” which freezes annual increases in Riyadh for five years, starting from September 25, 2025, with mandatory contract documentation via Ejar under the oversight of the General Real Estate Authority. In other cities, increases can remain possible through documented agreements.

Does a new landlord have the right to evict the tenant?

No. In Riyadh, nonrenewal is only permitted in defined cases, such as late payment, misuse, or the landlord’s need for the property (for themselves or a first-degree relative), with a 60-day notice.

What’s new for nonresidential leases?

The rent control decision in Riyadh also applies to commercial contracts, freezing annual increases for five years. Outside Riyadh, rent is determined by agreement with required documentation in Ejar.

Can the landlord raise rent every year?

In Riyadh: not during the decision period. In other cities: yes, if agreed upon during renewal or in a new contract and documented accordingly.

What is the typical duration of nonresidential lease contracts?

As agreed by both parties. The key is digital documentation via Ejar and compliance with the 60-day nonrenewal notice.

Is the new rent control decision now in effect?

The annual increase freeze in Riyadh takes effect starting September 25, 2025. Until then, the terms of the current contracts will remain in effect as written.

Does the rent control decision cover long-term contracts signed before it came into effect?

No. Pre-existing extended contracts are exempt, and their scheduled increases remain in effect until their natural expiration. Upon renewal (after the effective date), the terms of the decision apply.

How do I file a complaint or inquiry?

Use the channels of Ejar or the General Real Estate Authority. Please attach your documented contract and supporting documents to expedite the handling process. Prepare to use the Eviction Notice Form if needed to safeguard your rights. Rent Control

Sources

  • Saudi Press Agency (SPA): Official announcement and regulatory provisions
  • Al Arabiya: Details on the rent control implementation in Riyadh Argaam: Ministerial comments on rent control and regulation
  • Reuters: Report on Saudi Arabia’s five-year rent freeze in Riyadh
  • Ejar Platform: Documentation, regulations, and benefits
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