Freezing rents...an urban and quality of life move

Architect Dr. Hisham Al-Qasim

<In an unprecedented move, the General Authority for Real Estate announced through the Ejar platform stopping the annual increase of residential and commercial rents in Riyadh for five years, starting from September 25, 2025. The decision comes in implementation of the directives of His Highness the Crown Prince to achieve balance in the real estate sector and regulate the relationship between landlord and tenant to ensure justice and sustainability. <Although the measure appears to be purely economic, its impact extends to the urban fabric and the urban environment in the capital.

The decision in the context of urban development

Riyadh is witnessing rapid urban growth as part of the Kingdom's Vision 2030 projects, which has put pressure on the real estate market in recent years. The rent freeze is a supportive regulatory step for balanced urban development; it gives developers and tenants a stable environment for medium-term planning without fears of sharp price fluctuations.

This financial stability improves the quality of urban design, because developers can focus on efficiency and sustainability instead of riding the waves of rapidly rising rental values.

The impact of the decision on housing and usage patterns

<Architecturally, rent stabilization is an important factor in stabilizing urban occupancy patterns.
Households will not have to move frequently due to rising rents, which promotes place attachment and community continuity. The decision also allows investors and architectural offices to plan long-term projects in specific areas without worrying about market volatility, which contributes to achieving true urban sustainability within the city.

The decision also allows investors and architectural offices to plan long-term projects in specific areas without worrying about market volatility.

Improving the relationship between real estate value and design

The rapid rise in rents has led some developers to focus on quick profitability at the expense of architectural quality.

Under a price freeze, competition will shift toward increasing design quality, space efficiency, and diversity of urban functions as a means of attracting tenants.

The market becomes more competitive. <The market will become more mature in terms of design and architectural innovation rather than price speculation.

Towards a disciplined and sustainable real estate market

<The decision lays the foundation for a new phase of real estate balance in Riyadh, where the real value of a property is redefined based on its urban quality and environmental sustainability rather than price inflation.
Documenting contracts on the Ejar platform enhances transparency and provides accurate data to urban planners to help design more efficient housing policies in the future.

@ArchHesham