{"id":108484,"date":"2026-08-09T12:08:00","date_gmt":"2026-08-09T09:08:00","guid":{"rendered":"https:\/\/amlak.net.sa\/?p=108484"},"modified":"2026-08-09T12:09:22","modified_gmt":"2026-08-09T09:09:22","slug":"%d9%87%d9%84-%d9%8a%d9%83%d9%81%d9%8a-%d8%a7%d9%84%d8%aa%d9%82%d9%8a%d9%8a%d9%85-%d8%a7%d9%84%d8%b9%d9%82%d8%a7%d8%b1%d9%8a-%d9%84%d8%b1%d9%81%d8%b9-%d8%a5%d9%8a%d8%ac%d8%a7%d8%b1-%d8%a7%d9%84%d9%85","status":"publish","type":"post","link":"https:\/\/amlak.net.sa\/en\/108484\/","title":{"rendered":"Is a real estate appraisal sufficient grounds to raise the rent on an office or store in Riyadh?"},"content":{"rendered":"

When is market value accepted in \u00abIjar,\u00bb and when does the most recent contract serve as the reference?<\/strong><\/h1>\n\n\n\n

Imagine that the owner of an office or retail space in Riyadh believes that Rent Amount<\/strong><\/a> The rent recorded in the most recent lease agreement is now lower than the prevailing market rate. He hires a certified real estate appraiser, who issues a report stating a higher rental value. This raises a direct question: Is it sufficient to upload the appraisal report to the \u00abEjar\u00bb platform to have the new value approved?<\/p>\n\n\n\n

In accordance with the applicable official provisions and regulations, the short answer is: A real estate appraisal report does not automatically increase rent, nor does it constitute an independent basis for repricing every commercial property in Riyadh.<\/strong>
Market value is accepted as part of a formal objection process, limited to vacant properties and in specific cases. Existing leases, or vacant properties that do not meet the grounds for objection, remain subject to the provisions governing gross rent in the city of Riyadh.
This article presents the content of published legal texts and government regulations without providing legal or real estate advice, and without analyzing the investment or future implications of these provisions.<\/p>\n\n\n\n

The Beginning: Five Years of Fare Freeze\u00a0<\/strong>
The regulatory provisions governing the relationship between landlords and tenants took effect on September 25, 2025. They apply to residential and commercial properties located within the urban area of Riyadh.
The provisions 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 date of entry into force.<\/p>\n\n\n\n

The provisions also define \u00abtotal rent\u00bb 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 fall under the contractual rent.<\/p>\n\n\n\n

Three Different Cases Involving the Commercial Drug<\/strong>
The rulings do not treat all commercial properties the same way. The determination of rent depends on the condition of the property at the time the contract was entered into or when the objection was filed.<\/p>\n\n\n\n

Property Leased Under an Existing Lease:<\/strong> The total fare may not be increased.
Vacant property that was previously rented:<\/strong> The rent shall not exceed the amount of the most recent lease, unless a valid objection is accepted.
A property that has never been rented before:<\/strong> The rent is determined by agreement between the landlord and the tenant.<\/p>\n\n\n\n

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 result in the property being repriced simply because its market value has increased. Rather, it is one of the documents required in specific cases of dispute involving a vacant property that was previously leased.<\/p>\n\n\n\n

The property must be vacant<\/strong>
The regulations governing the review and resolution of objections define \u00abvacant property\u00bb as a property that is not leased at the time the objection is filed. 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.<\/p>\n\n\n\n

The landlord submits an objection through the \u00abEjar\u00bb network regarding the total rent set for the vacant property, which is the rent recorded in the most recent lease agreement for that property.<\/p>\n\n\n\n

When is a real estate appraisal report accepted?<\/strong>
The regulations specify two cases in which a report by a certified real estate appraiser is included among the supporting documents for an objection.
Case 1: Substantial structural or building-related repairs<\/strong>
The landlord may object if the vacant property has undergone major structural or construction renovations that have affected the total rent.
In this case, the appraisal report alone is not sufficient; the regulations require that three documents be attached:<\/p>\n\n\n\n

    \n
  1. Structural Renovation Permit.<\/li>\n\n\n\n
  2. A report issued by a certified engineering firm detailing the construction work or major structural repairs that have been carried out.<\/li>\n\n\n\n
  3. A report from a certified real estate appraiser indicating the total market rental value following the renovation work.<\/li>\n\n\n\n
  4. The appraisal report is therefore part of a comprehensive file documenting the completion of substantial work on the property, rather than a standalone document supporting the request for an increase.

    Case 2: The most recent contract was entered into before 2024<\/strong>
    The landlord may object if the most recent lease for the vacant property was entered into before January 1, 2024.
    In this case, the application must be accompanied by a report issued by a certified real estate appraiser stating the total market rent as of the date the objection regulations were issued.<\/li>\n<\/ol>\n\n\n\n

    The report remains a supporting document for the objection request, while the General Real Estate Authority reviews the request and issues a reasoned decision to accept or reject it.<\/p>\n\n\n\n

    When Is a Real Estate Appraisal Not Enough?<\/strong>
    According to the cases and documents set forth in the official regulations, an increase in market value alone does not constitute an independent basis for adjusting the fare in the following cases:<\/p>\n\n\n\n