RIYADH, Sep 25: The Real Estate General Authority of Saudi Arabia announced today the approval of new regulatory provisions governing the relationship between landlords and tenants, following directives issued by Crown Prince and Prime Minister Mohammed bin Salman Al Saud. The measures are part of broader efforts to establish balance and stability within the real estate sector in Riyadh.

According to the Authority’s statement, the new rules include a five-year freeze on annual rental increases for both residential and commercial properties—whether existing or newly signed contracts—within Riyadh’s urban boundaries, starting from today.

The regulations also stipulate that vacant properties in Riyadh will be leased based on the rental value of their last contract, while properties that have never been rented before will have their rent determined by mutual agreement between the landlord and tenant.

Additionally, the Authority clarified that lease contracts across all Saudi cities will be automatically renewed unless one party notifies the other of non-renewal at least 60 days before the contract’s expiration date. Specific conditions for landlords to refuse renewal in Riyadh have also been defined under the new framework.