بدءا من اليوم.. إيقاف الزيادة السنوية للإيجارات السكنية والتجارية في الرياض

In implementation of the directives previously issued by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister - may God protect him - to begin executing a package of new regulatory measures for the rental market in Riyadh; in response to the challenges faced by the capital over the past years regarding the rise in residential and commercial rental prices; the General Authority for Real Estate has studied the procedures according to the best practices and global experiences to regulate the relationship between landlords and tenants. The Cabinet's decision and the royal decree have been issued approving the regulatory provisions related to regulating the relationship between landlords and tenants, which include the following:

First: The annual increase in the total rent value in residential and commercial lease contracts (existing or new) for properties located within the urban boundary of Riyadh will be halted for a period of (5) years starting from today, 3 Rabee' Al-Thani 1447 AH, corresponding to September 25, 2025 AD. Accordingly, the landlord cannot increase the agreed total rent value of the property in existing or new contracts starting from this date. The provisions for regulating the annual increase in rental value may also be applied to all or parts of other cities, governorates, and centers (when necessary) by a decision from the Board of Directors of the General Authority for Real Estate after obtaining the approval of the Economic and Development Affairs Council.

Second: Starting from today, the total rent value for vacant residential and commercial lease contracts within the urban boundary of Riyadh (which were previously rented) will be fixed according to the total rent value of the last "Ejar" contract, and the total rent value for residential and commercial properties (which have not been previously rented) will be calculated based on what is agreed upon between the landlord and the tenant.

Mandatory Contract Documentation

Third: The documentation of lease contracts in the "Ejar" network: The landlord must apply to register the lease contract in the "Ejar" electronic network for any lease not registered in the network. The tenant has the right to apply for the registration of the contract in "Ejar," and the other party may object to the General Authority for Real Estate regarding the contract data within (60) days from the date of being notified of the registration; if that period expires without objection, the contract data will be considered correct.

Fourth: Organizing the rules for automatic renewal in lease contracts: The lease contract (in all cities of the Kingdom) is considered automatically renewed unless one party notifies the other party of their unwillingness to renew at least 60 days before the contract's expiration date, except for the following cases: contracts with a fixed term that have 90 days or less remaining at the time these provisions come into effect, or in cases where both parties agree to terminate the contract amicably after the specified notice period for expressing unwillingness to renew has passed. The General Authority for Real Estate may extend the notice period stipulated in the model contracts in accordance with the contract's duration and type, and the landlord may not refuse to renew the contract (for properties located within the urban boundary of Riyadh) if the tenant wishes to renew, and may only require the tenant to vacate the property in three cases:

1. The tenant's failure to pay.

2. The existence of structural defects in the property that affect its safety and the safety of the residents according to a certified technical report from the relevant government authority.

3. The landlord's desire to use the residential unit for personal use or for the use of a first-degree relative.

Or any other cases determined by the Board of Directors of the General Authority for Real Estate, according to the regulations and standards it sets.

Fifth: The landlord has the right to object to the rental value determined under these provisions in cases other than existing contracts, in any of the following cases: if the property has undergone substantial structural or renovation work that has affected its rental value, or if the last lease contract for the property was concluded before 2024, and any other cases approved by the Board of Directors of the General Authority for Real Estate, which is responsible for preparing the necessary regulations and mechanisms to consider and receive objections.

Penalties for Violators

Sixth: Regulations for violations and the penalties resulting from them, where a financial penalty will be imposed on anyone who violates these provisions, not exceeding the amount of rent for 12 months for the property subject to the contract, along with correcting the violation and compensating the affected party. The Board of Directors of the General Authority for Real Estate will issue a schedule of violations and their corresponding penalties based on these provisions, taking into account the severity of the violation and its circumstances. The formed committees will consider violations of these provisions and impose the stipulated penalties, and anyone who has been issued a violation decision may appeal it to the competent judicial authority within 30 days from the date of being notified of the violation decision. A reward of up to 20% of the amount of the penalty collected for any violation of these provisions (the regulatory provisions related to regulating the relationship between landlords and tenants only) will be granted to anyone who reports it - not specialized in applying its provisions - if they provide information that leads to a final decision confirming the violation. The Board of Directors of the General Authority for Real Estate will determine the regulations for distributing rewards and the mechanism for dividing them if there are multiple informants.

Seventh: In matters not specifically addressed in these provisions: the provisions of the Civil Transactions Law will apply, and the Council of Ministers may amend these provisions based on a recommendation from the Economic and Development Affairs Council in light of the reports received from the General Authority for Real Estate regarding these provisions.

The directives related to real estate balance stipulate that the General Authority for Real Estate should activate and monitor the new regulatory procedures in accordance with what has been approved in cooperation with the relevant authorities, and in line with the implementation plan, in addition to continuing to monitor rental prices and market movement to ensure compliance and the ability to raise any subsequent remedies as new developments arise. His Royal Highness the Crown Prince has also directed the submission of periodic reports on the progress of implementing these provisions, including reports on prices and related real estate indicators, as part of his commitment - may God protect him - to achieve balance in the real estate sector while safeguarding the rights of all parties.

To ensure the effective application of the regulatory measures taken to regulate the relationship between landlords and tenants, the General Authority for Real Estate and the relevant authorities will publish clarifications and explain the mechanisms taken in this regard and raise awareness about them.

These provisions come as a pivotal step towards restoring balance to the residential and commercial rental market in Riyadh, establishing justice and transparency in the contractual relationship between landlords and tenants, and represent an important phase towards providing a fair and safe investment environment that enhances quality of life and supports sustainable urban development efforts.