The Council of Ministers of the kingdom has approved two decrees providing for the automatic extension of existing leases, according to International Investment.

The new system also includes measures to protect vulnerable citizens from eviction and a temporary ban on investment funds purchasing residential real estate. The initiatives were split into two separate documents because the automatic renewal of contracts under previous terms raised debate in parliament.

Analysts note that, for investors, this primarily alters the risk-reward ratio. Opportunities to increase yield by adjusting rents, using seasonal lease contracts, or renting out individual rooms are shrinking, while property management requirements are becoming stricter.