Saudi Arabia freezes home rents for 5 years, citing steep increases

Saudi Arabia has ordered a five-year freeze on rent increases for residential and commercial properties in Riyadh, effective immediately, citing a steep rise in housing costs.

The decree, issued by Crown Prince Mohammed bin Salman, requires that rents for vacant units be capped at their last registered amount. 

Under the new measures, landlords found violating the freeze could face fines up to a full year’s rent, and whistleblowers may be eligible for 20% of collected fines. 

The freeze comes amid government concern about the impact of rising Saudi real estate values on cost of living in the capital, Bloomberg reports.

According to government data, private home rents jumped 13.9% and apartment rents 6.9% year-over-year in the second quarter.

High house prices and rents are undermining affordability, so much so that the Riyadh market saw a slowdown in deals for the first time in years in the first half of 2025, according to London-based consulting firm Knight Frank