Daijiworld Media Network - Riyadh

Riyadh, Sep 27: Saudi Arabia has unveiled comprehensive rental market regulations in Riyadh, aimed at curbing soaring rents and ensuring fairness between landlords and tenants. Announced following directives from Crown Prince Mohammed bin Salman, the new framework introduces a five-year freeze on rent increases, mandatory contract registration, automatic renewals, and strict enforcement measures to stabilise the rental sector.

Effective September 25, the five-year freeze applies to both existing and new leases for residential and commercial properties in Riyadh. The General Real Estate Authority (GREA) may extend the freeze to other cities if needed, with approval from the Council of Economic and Development Affairs. The move seeks to prevent unchecked rent hikes and improve residents’ quality of life.

All rental contracts must now be registered on the government’s Ejar platform. Once registered, the other party has 60 days to raise objections; if none are made, the contract becomes legally valid. For previously rented units, rents must remain at the last registered value, while first-time leases are set by mutual agreement. Rental contracts will automatically renew unless either party provides at least 60 days’ notice. Landlords may refuse renewal only in cases of non-payment, verified structural issues, or personal/family use of the property.

Strict penalties have been outlined for violations. Landlords in breach may be fined up to 12 months’ rent, required to correct the violation, and compensate tenants. Whistleblowers reporting violations may receive up to 20% of collected fines. Disputes can be appealed within 30 days through competent judicial authorities.

The GREA will continuously monitor rent trends, enforce regulations, and issue public awareness campaigns and periodic reports to the Crown Prince. The reforms aim to enhance transparency, prevent sudden rent hikes, support sustainable urban development, and protect the rights of tenants and landlords alike.

This initiative underscores Saudi Arabia’s commitment to stabilising the real estate market while safeguarding the interests of all parties in Riyadh’s rapidly growing urban landscape.