The state-backed real estate developer Saudi Arabia’s National Housing Company (NHC) will launch a Build to Rent programme as part of government efforts to ease pressure on the capital’s rental market.
Housing Minister Majid al-Hogail announced the initiative, saying it forms part of a package of measures designed to rebalance the rental sector, especially in Riyadh, after Crown Prince Mohammed bin Salman ordered tighter regulation of landlord-tenant relations.
Under the new rules, landlords in Riyadh will be barred from raising rents for five years starting 25 September 2025. The freeze applies to both existing and new contracts. NHC’s entry into the rental market will not only boost supply but also encourage other developers to invest.
Combining the rent freeze with the injection of new units through an institutional developer would translate administrative controls into genuine market balance, easing future pressures. NHC-led projects, typically run under unified management with professional maintenance standards, would improve the quality of rental units, enhance tenant satisfaction and secure long-term occupancy.
By offering standardised contracts, clear financing models and long-term operating structures, NHC lowers risks for private developers and draws institutional investors such as real estate investment trusts (REITs).
If rolled out as planned over the next two years and extended through 2030, the programme would narrow price bands across Riyadh, improve occupancy rates and balance supply between northern and eastern districts.
“The unprecedented growth of KSA’s residential sector reflects a deeper story: a region balancing tradition with modernity, where investment fuels progress while retaining the country’s charm and culture. More than just a property trend, this is a catalyst for regional development, driving improvements in infrastructure, services and lifestyle.
“Policy reforms are also transforming the Kingdom’s real estate landscape. Under the new foreign property ownership law, non-Saudi’s will be able own property in designated areas, significantly broadening market access, while the increased White Land Tax and Vacant Property Tax should stimulate supply, discourage speculative holding, and promote more efficient land use.
“These measures are expected to accelerate housing delivery, stabilise long-term price growth, and reinforce the Kingdom’s Vision 2030 objectives, which include 70% home ownership in the next five years.”
Sean Heckford, Director – Built Asset Consulting, Cavendish Maxwell
NHC’s entry would spur rival developers to compete for Riyadh’s strong rental demand. The government’s measures were designed to cool soaring property costs in the capital and would help stabilise the rental market in the medium term.
In August, to meet housing demand, the NHC formally launched Al-Ruba, a new urban development east of Riyadh with investments totalling $ 2.1bn. The project will cover 5.7 million sqm, feature over 9,000 residential units, and include 800,000 sqm of green space.
With the addition of Al-Ruba, the value of NHC’s Riyadh investment portfolio has risen to more than $39bn. The project forms part of NHC’s broader mandate to support Saudi Arabia’s Vision 2030 housing programme.
The state-funded development schemes come as residential property sales values in Saudi Arabia’s capital Riyadh have surged 63% year-on-year to $17.5bn in the first half of this year.
