RIYADH (Realist English). Saudi Crown Prince Mohammed bin Salman has ordered a five-year freeze on residential and commercial rents in Riyadh, in a bid to rein in property costs that have surged alongside the kingdom’s economic transformation plans. The measure, announced Thursday by the Saudi Press Agency, fixes rents for vacant properties at their most recent levels.
Addressing the Shura Council earlier this month, the crown prince described recent rent hikes as “unacceptable” and pledged policies to “rebalance the sector, reduce costs, encourage development and expand housing options for citizens and investors.”
Riyadh’s property boom is tied to Vision 2030 initiatives to position the capital among the world’s top ten urban economies. But surging demand has complicated official goals of lifting Saudi homeownership rates to 70% by the end of the decade.
“Rents have risen by 30–40% over the past two to three years, with even sharper increases of 50–60% in northern districts,” said Faisal Durrani, head of MENA research at Knight Frank. He attributed the spike to a wave of domestic migration and a growing expatriate population, with an estimated 250,000 Saudis relocating to the capital over the past five years.
The government is also targeting land supply, quadrupling taxes on undeveloped “white lands” larger than 5,000 square meters in key areas of Riyadh. At the same time, authorities are pushing ahead with large-scale projects including a new national park, an entertainment hub with a Formula 1 track, and a major airport expansion. These are designed to accommodate global events such as Expo 2030 and the 2034 FIFA World Cup, while bolstering the city’s long-term growth.