Riyadh landlords cannot increase rent in existing or new contracts per the new regulations governing the relationship between landlords and tenants, following their publication in the Official Gazette on Friday. The new regulations aim to stabilize the rental market and provide five-year temporary rental control that applies initially to Riyadh, with possible expansion nationwide.

Landlords are now prohibited from raising rents beyond the last contract value, curbing arbitrary rent increases. Meanwhile, new properties’ rent will be based on mutual agreement with tenants, ensuring flexibility for new developments. Landlords may challenge the set rent if the property underwent major renovations or if the last lease was signed before 2024, with other cases subject to board approval.

Automatic lease renewal becomes the default unless either party notifies the other at least 60 days before expiration. Landlords can only evict tenants for valid reasons such as non-payment, unsafe property conditions, personal or first-degree relative use, or other board-approved exceptions.

Unregistered leases must be recorded via the Ejar platform, and tenants may request registration or submit objections within 60 days. Violations of rent caps, renewal rules, or registration requirements carry fines of up to a year’s rent, and whistleblowers may receive up to 20% of the collected fine.

IN CONTEXT- The government has rolled out sweeping reforms to stimulate the real estate market to tackle “unacceptable” real estate prices, the Crown Prince acknowledged in his annual address. This includes a five-year rent freeze, opening property ownership to non-Saudis, permitting foreign investment in Makkah and Madinah real estate firms, and amending the White Land Tax law. The Royal Commission for Riyadh City also lifted temporary suspensions on a total of 114.7 sq km and launched the Tawazoun platform, offering citizens residential plots, capped at SAR 1.5k per sqm.

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