Riyadh Rent Costs Drop To 15 Percent As New Rules Protect Tenants
As of September 14, 2026, the Real Estate General Authority of Saudi Arabia reports that the average household rent burden in Riyadh has decreased from over 17.5 percent in September 2025 to approximately 15 percent. REGA CEO Abdullah Al-Hammad stated that this decline reflects the initial measurable results of balance measures implemented in the Riyadh rental market. While the 15 percent figure serves as a city-wide average, individual costs remain dependent on salary, neighborhood, unit size, and contract history. Despite the city-wide reduction, REGA noted that some financially vulnerable households have experienced rent burdens exceeding 30 percent.
Key details from the report include:
- Average household rent burden in Riyadh decreased to 15 percent.
- A five-year rent freeze is in effect within Riyadh's urban boundary.
- Ejar registration is the primary mechanism for tenant protection.
- Strict fines apply for violations of rent rules and missing Ejar registrations.
Five-Year Rent Freeze and Ejar Rules
Since September 25, 2025, a five-year rent freeze has been in effect for both existing and new residential and commercial lease contracts within Riyadh’s urban boundary. Under this framework, landlords cannot arbitrarily increase total rent upon renewal. For properties previously rented, the new rent cannot exceed the amount registered in the most recent Ejar contract. For units never before rented, the initial rate is set by mutual agreement. Limited exceptions to the cap apply, such as properties with major structural renovations or those with leases dating before 2024.
Ejar registration remains the primary mechanism for tenant protection. Landlords are mandated to register leases via the Ejar network; if they fail to do so, tenants may initiate the registration themselves. Once notified, the counterparty has 60 days to file an objection. Cash payments or informal agreements are discouraged in favor of official Ejar documentation to ensure legal recourse.
Lease Termination and Penalties
Regarding lease termination, landlords are restricted from forcing tenants out unless specific grounds are met, such as non-payment, structural defects, or the landlord's intent to occupy the property personally. In the event of a personal-use reclamation, a 365-day notice period is mandatory. If the notice is provided less than 365 days before expiry, the contract can be extended to complete the full year.
Violation of these rent rules carries significant penalties. A first-time prohibited rent increase can result in a fine equal to two months' rent, escalating to six months for a second offense and up to 12 months for repeated violations. Failure to register an Ejar contract can lead to fines ranging from three to six months' rent. Furthermore, whistleblowers reporting valid violations may be eligible for an incentive reward of up to 20 percent of the collected fine. Residents may utilize REGA’s official channels or call 199011 for inquiries or to file complaints. Indian expatriates are advised to verify their Ejar account details, including contract expiry dates and registered rent amounts, and to ensure all payments are made through approved digital channels to maintain verifiable records.