Saudi Arabia Freezes Riyadh Rents for 5 Years to Cut Living Costs
Saudi Arabia has announced a five-year freeze on rent increases in Riyadh to control rising housing and office costs. Crown Prince Mohammed bin Salman approved the move, the Saudi Press Agency reported on Thursday.
How the freeze works
The rule covers both existing and new rental contracts in the city. Empty properties will keep their last agreed rent, while landlords and tenants can negotiate prices for units that haven’t been rented before. Breaking the rule could lead to fines of up to one year’s rent, according to the Real Estate General Authority.
Why the freeze was needed
Rents in Riyadh have been climbing quickly. In the first half of 2025, apartment rents went up 15% and villa rents 8%, according to CBRE. Commercial rents have also jumped by double digits for several years. This has made it harder for families and businesses to afford property in the capital, especially as demand grows under Saudi Arabia’s Vision 2030 plan.
Rising costs have already slowed down housing sales. Research from Knight Frank showed a drop in transactions in early 2025 as many households could not afford market prices.
Reactions and other measures
Analysts welcomed the freeze as a step to make housing more affordable. At the same time, the government is trying to increase supply and curb speculation. Taxes on large undeveloped plots have risen from 2.5% to 10% unless development begins, and up to 5% will be charged on unused buildings.
More homes and offices are also being built. About 20,000 new homes are expected this year, and another 60,000 by 2027. Around 600,000 square meters of office space will be added in 2026. Experts believe this could help bring rents down even before the freeze ends.
Balancing act
For the crown prince, the rent cap aims to keep Riyadh attractive for investors while also protecting residents from high costs. If carried out well, the freeze could make housing more affordable, stabilize the property market, and support Saudi Arabia’s wider economic plans.
Published: 26th September 2025
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