Big News! Saudi Arabia Freezes Rent Increase For Five Years In Riyadh

According to a big development, Saudi Arabia has introduced important regulations. These regulations are for the rental market of the city, for which the rent increases have been frozen. As a result, both the residential and commercial property rent increases have been frozen for five years, and we are here to tell you all about this development.

Five Years Of Rent Increase Frozen In Riyadh

As revealed in a report by Saudi Gazette, Saudi Arabia has introduced important changes for regulating the rental market in Riyadh. Yes, according to the new regulations, the rent increase has been frozen for the capital city. As it happens, these measures were approved by the Council of Ministers. With the decision taking place under the directives from Crown Prince and Prime Minister, Mohammad Bin Salman, the reforms aim to address the rent hike

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What Does It Mean For Owners And Tenants?

As it happens, vacant properties will have the rent fixed at the value of the most recent registered contract. While the units which have never been rented, the initial rent can be agreed upon freely by the landlords and the tenants. However, all the contracts should be registered through the Ejar platform. Whether by landlord or tenants, this must be done with a 60-day window for objections and if there is no objection raised, the contract data will be deemed valid. In fact, automatic renewals will also be regulated!

In fact, if a person is found violating these rules, they will be liable to pay a fine equivalent to up to 12 months of rent. This will be along with compensation for the affected tenants. In fact, 20% of the fine will be given as a reward to the whistleblowers.

So with the aim of safeguarding the rights of all the parties, this truly happens to be a return point in the rental market of Riyadh. As it happens, it is possible that it can be extended to other cities if it is deemed important.

Cover Image Courtesy: Canva Pro/MOHAMED HUSSAIN YOUNIS