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Real Estate General Authority CEO Abdullah Al-Hammad told a conference on the legal aspects of governance at King Saud University that the rent burden ratio in Riyadh fell from over 17.5 percent of household income in September 2025 to approximately 15 percent. Al-Hammad described the reduction as one of the initial measurable outcomes from decisions aimed at achieving comprehensive real estate balance in the capital. The REGA chief added that the change came after more than a year and a half since those decisions took effect, with periodic reports on market indicators submitted in line with directives from Crown Prince Mohammed bin Salman. Families with the greatest need had been allocating more than 30 percent of their income to rent before the measures produced this relief, according to Al-Hammad.
The roughly 2 percent decline represents a tangible result for residents, Al-Hammad stated at the university event. A Real Estate General Authority assessment found that the initiatives have helped moderate pressures that previously pushed costs higher amid supply shortages relative to rising demand. The authority continues to track these metrics closely, with Al-Hammad noting that follow-up reports highlight both progress and remaining challenges in the sector.
Regulatory provisions approved in September 2025 suspended annual increases in total rental value for residential and commercial lease contracts in Riyadh for five years, the Real Estate General Authority said in an official announcement. The rules apply to both existing and new contracts within the capital’s urban boundaries, fixing rents at the last registered level on the Ejar platform for vacant properties. REGA indicated that similar steps could extend to other cities if needed, subject to further approvals from the Council of Economic and Development Affairs.
Riyadh’s rental market currently includes more than 1.07 million units, of which 838,000 are residential and 332,000 commercial, according to figures Al-Hammad presented during a government press conference. These properties belong to around 200,000 owners and corporates, with 84 percent of owners holding residential units. The largest single owner controls 3,200 units, or just 0.4 percent of the total, a distribution that Al-Hammad said demonstrates the market’s broad and diverse nature without dominance by any one party.
Al-Hammad emphasized during his university remarks that the absence of monopoly does not eliminate all difficulties, as rising prices had stemmed from imbalances between housing supply and demand. The Real Estate General Authority has focused on building trust through electronic registration on the Ejar platform, which now mandates digital recording for all landlord-tenant agreements. This system allows either party to register contracts, with a 60-day window for objections, as outlined in the authority’s published regulations.
The measures align with broader efforts to enhance stability and quality of life, according to statements from the Real Estate General Authority. Automatic renewal of rental contracts has become the default unless one side provides at least 60 days’ notice of non-renewal, with limited exceptions for eviction such as non-payment or safety issues. REGA data places the current framework as a response to earlier surges, including reported 20 to 25 percent rent increases in some districts over recent years prior to the intervention.
Further oversight has led to the detection of violations, with the authority handling 268 reports in one period and confirming 18 cases that prompted legal action against landlords, the Real Estate General Authority reported. These included unauthorized rent hikes and failures to register on Ejar. Al-Hammad has stressed the importance of balancing interests between landlords and tenants while safeguarding rights through continued monitoring and enforcement.
