Saudi Arabia instates a rent freeze in Riyadh for the next five years
Incredible news for renters
If you rent in Saudi Arabia, you already know that for the past few years, the rental market in Saudi Arabia, especially in Riyadh, has been getting beyond out of hand. Well, good news for us. Crown Prince and Prime Minister Mohammed bin Salman has just announced a rent freeze in Riyadh for the next five years.
In a bid to stabilise housing costs and ensure fairness between landlords and tenants, the new rules state that the current rental value of properties, whether in existing or new contracts, cannot be increased for five years within Riyadh’s urban boundary.
The same rules can also be expanded to include other cities and governorates if deemed necessary by the Real Estate General Authority, pending approval of the Council of Economic and Development Affairs.
Properties in Riyadh that are currently vacant will have their rent fixed at the value of the most recent registered contract. For units that have never been rented, landlords and tenants may agree on the rent freely, according to Saudi Gazette.
All rental contracts need to be registered on the Ejar platform, either by landlords or tenants. There’s a 60-day window for objections, and if no objection is raised, the contract data will be deemed valid.
Landlords cannot refuse renewals
Also specified in the rules is that landlords in Riyadh cannot refuse renewals should the tenants wish to extend the contract, except under the following conditions:
- non-payment of rent
- structural defects affecting safety
- if the landlord wishes to use the property personally or for a first-degree relative.
Violations carry hefty fines
If landlords are reported for violating these new rules, they will have to pay fines equivalent to 12 months’ rent, alongside compensation for affected tenants. Whistleblowers can receive up to 20 per cent of the fine as a reward for reporting violations.
Appeals
According to the new rules, landlords are still allowed to appeal fixed rents in very limited circumstances, such as after significant renovations or if the last contract was signed before 2024.
Visit: rega.gov.sa
Images: Getty
