Riyadh rent burden falls to 15% of household income: REGA CEO

Riyadh's rent burden has decreased to approximately 15% of household income, down from over 17.5% in September 2025, according to Real Estate General Authority (REGA) CEO Abdullah Al-Hammad. The reduction in rent expenses is seen as a positive outcome of the measures implemented to stabilize the city's property market.

Al-Hammad made these remarks at the Legal Aspects of Governance Conference held at King Saud University. He highlighted that the most financially vulnerable households were previously spending more than 30% of their income on rent. The decline in the rent burden is attributed to Crown Prince Mohammad bin Salman's directives, which involve closely monitoring real estate indicators and reporting on the outcomes and challenges regularly.

To address pressures in the rental market, Riyadh has introduced a five-year freeze on annual rent increases for both existing and new residential and commercial lease contracts within the capital's urban area. For previously leased residential and commercial properties, the total rent remains fixed at the amount specified in the last Ejar contract. In the case of vacant properties, the rent is determined by negotiation between the landlord and tenant.

Furthermore, the measures include extending the notice period when a landlord intends to terminate a standard residential lease. Tenants are required to receive a minimum of 365 days' notice before the lease expires if the property will be used personally or by a first-degree relative. If notice is given less than 365 days prior to the lease's termination, the lease is extended until a full year has passed from the date the tenant was notified.