The New Rental Regulations in Riyadh
A Royal Decree and Council of Ministers’ resolution have been issued approving new legal provisions governing the relationship between landlords and tenants across the Kingdom of Saudi Arabia. These provisions introduce a series of regulatory measures for the Saudi rental market, applicable to all cities nationwide, with a set of specific exceptions designed exclusively for Riyadh. These special provisions aim to address the city’s real estate market challenges.
In this article, Al Salamah Law Firm & Legal Consultancy explains these new regulations in detail.
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Key Rental Regulations in Riyadh
1. Suspension of Annual Rent Increases
The annual increase in rental value for properties within Riyadh’s urban boundaries has been suspended for five years. This applies to both existing and new contracts effective from September 25, 2025.
2. Fixing Rent for Vacant Properties Previously Leased
To ensure price fairness, the rental value of vacant properties within Riyadh’s urban area will be fixed according to the last registered rent in the Ejar system.
3. Regulating Rent for Properties Leased for the First Time
For properties being leased for the first time, the rent will be determined based on mutual agreement between the landlord and tenant.
4. Cases of Non-Renewal of Lease Contracts
Lease contracts will automatically renew unless either party notifies the other of non-renewal at least 60 days before the contract ends.
However, in Riyadh, landlords may not refuse to renew the contract if the tenant wishes to renew except in specific cases, such as:
- Tenant’s failure to pay rent.
- Structural defects that affect residents’ safety (supported by an official technical report).
- The landlord’s wish to use the property for personal residence or for a first-degree relative.
- Any other cases determined by the General Real Estate Authority under specific regulations.
FAQs
Can rental values increase in Riyadh?
No. To stabilize the market in the capital, the new rules prohibit landlords from increasing rental values for residential and commercial properties within Riyadh’s designated urban area for five years from the date the provisions take effect.
Can rental increases occur in other Saudi cities?
Generally, rental values remain fixed as agreed in the contract. However, in cities outside Riyadh, the regulations allow landlords to request a rent adjustment at renewal—but not automatically. A formal request must be submitted through the Ejar platform, and explicit tenant consent is required, ensuring mutual agreement and balance between both parties.
If the tenant refuses a rent increase, can they stay in the property at the same rate?
Outside Riyadh, if a tenant rejects a proposed increase, the contract will not automatically renew, and staying in the property depends on reaching a new agreement.
In Riyadh, however, landlords cannot request rent increases during the five-year regulatory period and cannot refuse renewal except in cases specified by law.
Why is rent control applied only in Riyadh, and when might it extend to other cities?
Riyadh serves as the first phase of implementation based on real estate market indicators and the need to promote balance. The General Real Estate Authority may expand application to other cities in the future subject to the approval of the Council of Economic and Development Affairs based on ongoing market assessments.
If I already agreed with the tenant on a rent increase before the regulations, can I include it in the contract for a Riyadh property?
No. Under the new rules, no rent increases are allowed for any properties in Riyadh. The registered upper limit must be strictly observed.
What if a landlord falsely claims a property is outside Riyadh to bypass the rules?
Property locations are verified through ownership documentation. Any landlord who provides false information will face legal consequences.
When can a landlord object to the set rent ceiling?
Landlords may object in only two cases:
If the property underwent substantial renovations that significantly increased its value.
If the last recorded rental contract was before 2024.
What is the rent cap for a property previously leased but currently without an active contract?
For vacant properties in Riyadh that were previously leased, the rent cannot exceed the value recorded in the most recent Ejar contract.
How is rent determined for a new property with no prior Ejar record?
For properties leased for the first time, rent is set by mutual agreement and recorded as the maximum allowable rent in Riyadh.
If a 10-year lease with annual rent escalation was signed after the regulations took effect, what happens?
In Riyadh, the rent will be fixed at the first agreed value for five years from the effective date. Rent escalation will only be allowed after that five-year period.
In Conclusion:
By 2030, Riyadh is expected to experience denser urban growth, a more stable rental market, and greater economic expansion.
Al Salamah Law Firm & Legal Consultancy provides expert guidance and legal support to help clients understand and comply with the new rental relationship regulations, the White Land Fees System, and the updated Vacant Property Regulations and their executive bylaws.
If you wish to submit a formal legal objection, Al Salamah Law Firm is ready to assist you.
