REGA mulls rent cap, says CEO

Abdullah Alhammad, CEO of REGA

Real Estate General Authority (REGA) studies a cap on increased rents, given that this is one of the international practices to control higher rentals, CEO Abdullah Alhammad told Al-Arabiya TV.

A recent directive was issued by Crown Prince Mohammed bin Salman to rebalance the real estate market and control increased rents.

The landlord-tenant relations are registered on the ejar platform. There is a need to enhance these relations by balancing interests, Alhammad added.

On idle land fees, REGA’s CEO said these fees mainly aim to encourage land development, and their implementation in several regions has paid off.

He added that the expected improvements and amendments to this law will further enhance and accelerate land development while addressing some of the challenges and shortcomings that have emerged. Additionally, these changes aim to achieve multiple objectives in response to the significant growth in the real estate sector.

Several entities are working on refining the law after inviting public feedback.