In a significant move, Crown Prince Mohammed bin Salman has introduced new property-rent regulations in Riyadh, Saudi Arabia. These regulations stipulate that residential and commercial property rents in Riyadh will not be increased for the next five years. The aim of this decision is to stabilize rental prices and ensure a fair and transparent property market within the capital city. This decision will directly affect expatriates residing in Saudi Arabia for employment or business purposes, particularly those who rent their accommodation or operate businesses on leased premises. A large number of Indians are included in this category.
The General Real Estate Authority stated that the cabinet and royal directives are designed to control rising housing and commercial rents in the capital and bring more balance, transparency, and fairness to the market. This law includes rent control as well as renewals and property registration.
This new law came into effect on September 25, 2025. Landlords in Riyadh will not be able to increase existing or new rents for five years. The rent for vacant properties should be the same as the previous lease value. The rent for properties being leased for the first time will be determined by agreement between the landlord and the tenant.