• Saudi Arabia freezes rent increases in Riyadh for five years to control inflation and boost housing and commercial supply.
• The rule covers new and existing contracts, with vacant units priced at previous rates and first-time leases set by agreement.
• Officials say the freeze could expand beyond Riyadh if residential rent growth remains at high levels across the Kingdom.

Rent Hikes

Saudi’s Real Estate General Authority (REGA) announced new rent control measures in Riyadh. These measures are designed to curb inflation and increase the availability of housing and commercial units. Additionally, the freeze covers both existing and new contracts within the capital’s urban boundaries.

The suspension will apply to properties within Riyadh’s urban boundaries for five years, beginning today, 03 Rabi’ Al-Akhir 1447 AH (25 September 2025). From this date forward, landlords will not be allowed to raise the total rental value of a property in either existing or new contracts. 

Market Dynamics

Under the new rules, vacant properties that were previously leased must maintain their last registered rental rate. For properties entering the rental market for the first time, landlords and tenants can negotiate terms directly. This framework provides clarity while limiting sudden increases in overall rental values.

Authority spokesman Tayser al-Mufarrej told Al Arabiya that the decision will “limit inflation and expand supply in the property market.” He also stressed that the five-year period was set to measure the policy’s impact on prices and availability.

The policy is seen as part of broader efforts to ease cost pressures in Saudi Arabia’s largest city. Riyadh has seen sharp increases in residential rents, driven by strong demand, population growth, and ongoing urban development projects.

Officials also signaled that if rental prices continue to climb in other regions, the freeze could be extended beyond the capital. That possibility underscores how central housing affordability has become in the Kingdom’s economic planning.