New Reality: Five-Year Rent Freeze in Riyadh
Riyadh has enacted a five-year freeze on rent increases for all residential and commercial properties from September 25, 2025. For businesses, understanding and verifying compliance is essential in decision-making, budgeting, and negotiations.
How to Verify Your Rent Is Protected
- Ejar Platform Registration:
Every lease—including renewals—must be digitally registered on the government’s Ejar platform. The registered contract and rental value are legally binding. Log into Ejar (www.ejar.sa) to confirm your contract details and current rent amount. - Automatic Renewal & Notification:
All contracts in Riyadh are automatically renewed unless either party gives at least 60 days’ notice. For renewals, the rent cannot be raised unless approved exceptions apply. - Check Previous Rent:
For vacant properties, rent is fixed at the last registered value in Ejar. If moving to a new location, request and verify this value before signing. - Never Accept Verbal Changes:
Only written, Ejar-registered agreements signed by both parties are valid. Avoid agreeing to off-the-record or “side” rent hikes, as these are unenforceable under current law.
What If a Landlord Demands a Rent Hike?
- Remind and Show the Law:
Politely reference the rent freeze regulation. Share the Ejar record that confirms your current, “locked-in” rent. - File a Complaint:
If pressured, use Ejar’s complaint channel, or contact the Real Estate General Authority. Violating landlords face penalties up to 12 months’ rent and must compensate tenants. - Whistleblower Protections:
Tenants who report violations are eligible for up to 20% of any fine imposed on the landlord. This encourages swift legal action and compliance.
What Are the Exceptions and When Can Rent Increase?
Rent can only be increased IF:
- The last contract predates 2024.
- Major renovations, validated by official reports, substantially increase property value.
- The General Real Estate Authority grants specific approval after review.
Other exceptions include proven non-payment, verified safety hazards, or if the landlord/family needs to occupy the space.
Demand, Supply, and Reliable Rents: How to Stay Safe
Even as supply and demand set rent for new units, once a business signs a contract, the rental price remains fixed for five years—even if the market shifts.
- Before signing: Always check Ejar for historical rents of similar properties.
- After signing: Use Ejar to confirm no rent increases are sneaked into automatic renewals.
- Strategic Site Selection: If expanding or relocating, focus on compliance history and transparency of landlords, not just price.
Decision Checklist for Businesses
- Register or update all lease contracts on Ejar
- Confirm the rent value in writing, stored on Ejar
- Reject and report any attempt to raise rent outside approved exceptions
- Factor rent certainty into site selection, budgeting, and expansion strategies
