Saudi Rent Freeze & Price Controls

Marty and Odell explain Riyadh’s five-year rent freeze, consequences of price controls, and threats to property investment.

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- Saudi Arabia | Crown Prince Orders Rent Freeze in Riyadh

In Saudi Arabia, Crown Prince Mohammed bin Salman has ordered a five-year freeze on residential and commercial rents in the capital of Riyadh. This follows a sharp rise in rent prices in recent years, a trend that the policy aims to curb. Violations face steep financial punishments. Property owners who violate the freeze risk fines of up to a year’s rent plus compensation for tenants. And whistleblowers can earn 20% of any fines collected. While billed as relief, rent freezes are a form of price control that can often yield adverse effects. Property owners may reduce upkeep, shift investments away from housing, or demand informal payments to compensate for the loss of income. This can create shortages and deteriorating conditions, making it disproportionately harder for new or lower-income residents to find affordable housing amid the backdrop of authoritarian rule and immense digital repression. FinancialFreedomReport.org

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