Crown Prince Mohammed bin Salman has implemented new rent regulations in Riyadh, with a focus on stabilizing the property market. The new rules dictate that rents for both residential and commercial properties will remain unchanged for the next five years. This measure is intended to promote a more equitable and transparent property environment. The regulations will directly impact expatriates living and working in Riyadh, many of whom are tenants or operate businesses in rented spaces. A substantial Indian population resides in Saudi Arabia and will be directly impacted.
The General Real Estate Authority clarified that the new regulations aim to manage rising rental costs and create a more balanced, transparent, and fair market environment. The law encompasses rent control measures, renewal provisions, and property registration requirements.
The new law became effective from September 25, 2025. Consequently, landlords in Riyadh are restricted from increasing current or new rents for a period of five years. For vacant properties, the rent must correspond to the previous lease value. For properties being leased for the first time, the rent will be determined by the mutual agreement between the landlord and tenant.