Saudi Arabia imposes rent freeze in Riyadh
In a landmark decision, Saudi Arabia has announced a five-year freeze on residential and commercial rents in the capital, Riyadh. Crown Prince Mohammed bin Salman introduced the new regulations on September 25, 2025, as part of efforts to stabilize the real estate market.
The General Real Estate Authority confirmed that the cabinet and royal directives are aimed at curbing rising rental costs. Officials stated that the law seeks to ensure fairness, transparency, and balance in Riyadh’s property market.
The new rules apply to all existing and new lease agreements. Landlords will not be allowed to increase rents on occupied properties for the next five years. For vacant properties, the rent must match the last recorded lease price. In cases where properties are leased for the first time, the rate will be decided by mutual agreement between landlords and tenants.
Impact on expatriates, especially Indians
This decision is expected to directly affect millions of expatriates living in Riyadh. Among them, Indians form one of the largest communities. According to estimates, over 2.5 million Indians live in Saudi Arabia, with a significant number residing in rented homes or running businesses in leased properties.
For Indian workers and entrepreneurs, the rent freeze could bring much-needed relief. Rising housing costs in Riyadh have been a growing concern, with many middle-class expatriates struggling to balance living expenses with stagnant wages.
Moreover, Indian-owned small businesses operating in rented commercial spaces stand to benefit from predictable rental rates. This could improve business stability and planning, particularly in the retail and service sectors.
Economic and bilateral implications
The rental reform is also seen as part of Saudi Arabia’s broader economic restructuring under Vision 2030. By controlling property inflation, the government hopes to make Riyadh a more attractive destination for global talent and foreign investment.
India and Saudi Arabia already share strong economic ties, with bilateral trade crossing $50 billion annually. The Indian community in Saudi Arabia contributes significantly to both economies, through remittances and active participation in local businesses.
Analysts believe the rent freeze will strengthen this economic relationship further. By ensuring stability for expatriates, the Saudi government sends a clear message about its commitment to fair housing policies and investor confidence.
Relief for tenants, concerns for landlords
While tenants have welcomed the decision, some property owners have expressed concerns. Landlords fear that fixed rents could reduce profitability, especially in areas where demand is high.
However, the government insists the move is temporary and necessary to balance the market. By preventing sudden rent spikes, officials argue, the reform will create long-term stability for both landlords and tenants.
Economists also note that landlords will benefit from lower vacancy rates, as stable rents encourage more tenants to commit to longer lease agreements.
What lies ahead for Indian expatriates?
For Indians living and working in Riyadh, the rental freeze is likely to ease financial stress in the coming years. Families dependent on affordable housing and entrepreneurs operating in competitive markets can plan their expenses with greater certainty.
Additionally, the reform may encourage more Indians to consider Riyadh as a destination for work or business opportunities. The stability in rental costs could make relocation and long-term settlement more feasible.
However, experts caution that while the freeze offers relief, other living costs such as utilities and food may continue to rise. Expatriates will need to balance these expenses despite the housing advantage.