Riyadh Rent Burden Reduced to 15% of Household Income

The share of household income spent on rent in Riyadh has fallen to about 15%, from more than 17.5% in September 2025, according to Real Estate General Authority (REGA) CEO Abdullah Al-Hammad. Speaking at the Legal Aspects of Governance Conference at King Saud University, Al-Hammad said the decline was among the tangible results recorded following the introduction of measures aimed at balancing Riyadh’s property market. He noted that the most financially vulnerable households had been spending more than 30% of their income on rent. Al-Hammad said Crown Prince and Prime Minister Mohammed bin Salman’s directives included continuously monitoring real estate indicators and submitting periodic reports on results and challenges. Riyadh has introduced a series of measures aimed at addressing pressures in the rental market, including a five-year freeze on annual rent increases for existing and new residential and commercial lease contracts within the capital’s urban boundary. For vacant residential and commercial properties that have previously been leased, the total rent is fixed at the amount stipulated in the property’s most recent Ejar contract. For properties that have never previously been rented, the rent is determined by agreement between the landlord and tenant. The measures also extended the notice period required when a landlord does not intend to renew a standard residential lease because the property will be used personally or by a first-degree relative. In such cases, tenants must receive at least 365 days’ notice before the lease expires. If notice is given less than 365 days before expiry, the lease is extended until a full year has elapsed from the date the tenant was notified.