When is market value accepted in «Ejar,» and when does the most recent contract remain the reference?

Imagine that the owner of an office or retail space in Riyadh finds that the rent listed in the most recent lease is now lower than the prevailing market value. He hires a certified real estate appraiser, who issues a report with a higher rental value. This raises a direct question: Is it sufficient to submit the appraisal report to the «Ejar» platform to have the new value approved?

According to the applicable official regulations and guidelines, the short answer is: A real estate appraisal report does not automatically raise the rent, nor does it constitute an independent basis for repricing every commercial property in Riyadh.
The market value is accepted as part of a formal objection process, which is limited to vacant properties and applies only in specific cases. As for existing leases or vacant properties that do not meet the grounds for objection, they remain subject to the provisions governing gross rent in the city of Riyadh.
This article presents the content of published government texts and regulations without providing legal or real estate advice, and without analyzing the investment or future implications of these provisions.

The Beginning: Five Years of Rent Freeze
The regulatory provisions governing the relationship between landlords and tenants entered into force on September 25, 2025. They apply to residential and commercial properties located within the urban area of Riyadh.
The regulations stipulate that the total rent may not be increased for lease agreements in effect at the time of their entry into force, or for agreements entered into thereafter, for a period of five years from the effective date.

The provisions also define «total rent» as the rent for the property and any other amounts paid by the tenant to the landlord under the lease agreement. Thus, the provision is not limited to the base rent alone but includes the total amounts that constitute the contractual rent.

Three Different Categories of Commercial Real Estate
The provisions do not treat all commercial real estate in the same manner. The determination of rent depends on the status of the property at the time the lease was entered into or when the objection was filed.

Property leased under an existing lease: The total rent may not be increased.
Vacant property that was previously leased: The rent may not exceed the amount of the last lease, unless a valid objection is accepted.
Property that has never been leased: The rent is determined by agreement between the landlord and the tenant.

This distinction is fundamental to understanding the role of real estate appraisal. The report does not change the rent under an existing lease, nor does it reprice the property simply because the market value has increased. Rather, it is included among the required documents in limited cases of objection involving a vacant property that was previously rented.

The property must be vacant
The regulations governing the review and adjudication of objections define a «vacant property» as a property that is not leased at the time the objection request is submitted. The regulations also stipulate that the property subject to the objection must be vacant at the time the request is submitted. Therefore, the objection process cannot be used to re-price an office, store, or warehouse that is still occupied under an existing lease agreement.

The landlord submits the objection via the «Ejar» network regarding the total rent determined for the vacant property, which is the rent recorded in the most recent lease agreement for that property.

When is a real estate appraisal report accepted?
The regulations specify two cases in which a report from a certified real estate appraiser is included among the supporting documents for the objection.
Case 1: Substantial structural or architectural renovations
The landlord may file an objection if the vacant property has undergone substantial structural or architectural renovations that have affected its total rent.
In this case, the appraisal report alone is not sufficient; the regulations require the submission of three additional documents:

1. A structural renovation permit.
2. A report issued by a certified engineering firm detailing the structural work or major structural renovations performed.
3. A report from a certified real estate appraiser indicating the total market rent value after the renovation work.
4. Thus, the appraisal report is part of a comprehensive file proving that substantial work has been carried out on the property, and is not a standalone document for requesting a rent increase.
   
   Second Case: Last Lease Executed Before 2024
   The landlord may object if the last lease for the vacant property was executed before January 1, 2024.
   In this case, the request must be accompanied by a report issued by a certified real estate appraiser specifying the total market rent as of the date the objection regulations were issued.

The report serves as supporting documentation for the objection request, while the General Real Estate Authority reviews the request and issues a reasoned decision to accept or reject it.

When Is a Real Estate Appraisal Insufficient?
According to the cases and documents specified in the official regulations, an increase in market value alone does not constitute an independent basis for adjusting the rent in the following cases:

• If the property is leased under an existing lease agreement.
• If the vacant property’s most recent lease was entered into on or after January 1, 2024, and it has not undergone any substantial structural or architectural renovations.
• If the document submitted is merely a market comparison or an appraisal report not related to any of the specified grounds for objection.
• If the property was not vacant at the time the objection was filed.
• As for a property that has never been leased before, there is no need to object to a previous rent; the regulations stipulate that its rent is calculated based on what the landlord and tenant agree upon.
  
  How is an objection reviewed?
• The General Real Estate Authority has established a specific process for reviewing objections to the rent of vacant properties:
• The landlord submits a request to object to the rent for the vacant property.
• The request is submitted through the «Ejar» network.
• The required documents must be attached, depending on the reason for the objection.
• The Authority will decide on the request within ten business days from the date it is completed.
• If the Authority requests additional documents, they must be submitted within ten business days from the date of notification; otherwise, the request will be closed.
• The landlord will be notified of a reasoned decision to accept or reject the objection via the «Ejar» network.
• These procedures do not imply that the value stated in the appraiser’s report is automatically approved; the regulations stipulate that the Authority has the authority to decide on the request after reviewing the grounds for the objection and the supporting documents.
  
  Summary
• In the city of Riyadh, real estate appraisal is not a general means of raising the rent for offices, stores, showrooms, or warehouses to market value.
• The role of the approved real estate appraiser’s report becomes evident when objecting to the rent for vacant property in two specific cases: When substantial structural or architectural renovations are carried out, or when the property’s most recent lease was signed before January 1, 2024.
• For existing leases or properties where the grounds for objection do not apply, the preparation of a new appraisal will not result in an adjustment to the registered total rent. Whether an objection is accepted or rejected remains a decision issued by the General Real Estate Authority via the «Ejar» network after reviewing the request and its supporting documents.
• Thus, the regulatory question is not only: What is the market value of the property? but also: Does the property fall under any of the officially specified grounds for objection?
  
  Official References
• Regulatory provisions governing the relationship between landlord and tenant – Umm al-Qura Newspaper.
• Regulatory Provisions Governing the Relationship Between Landlord and Tenant – General Real Estate Authority.
• Regulations for Reviewing and Ruling on Objections to the Total Rent Set for Vacant Properties – General Real Estate Authority.
• Official Questions Regarding the New Provisions – Ejar Network.
  Commercial Real Estate Expert