‎Home loans decline 12% to SAR 80.4B in 2025

Residential mortgages granted to individuals by banks in Saudi Arabia retreated 12% year-on-year (YoY) to SAR 80.4 billion in 2025, data issued by the Saudi Central Bank (SAMA) showed.

Novemberhadthe lowest value in 2025 in terms of the volume of new residential real estate financing per month, at about SAR 4.47 billion, recording the lowest level in over two and a half years.

SAMA reduced the reverse repo and repo rates three times during the past year to 375 basis points and 425 basis points, respectively, in conjunction with the US Federal Reserve’s decision.

According to data issued by SAMA, 108,800 contracts were concluded between banks and individuals in 2025.

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The average value of new residential mortgages declined by 1% YoY in 2025, reaching SAR 739,000.

Financing for residential villas accounted for the largest share of the total mortgages provided by banks during 2025, with a value of SAR 51.4 billion, at 64%. Residential apartments came in second place with SAR 24.3 billion, followed by land plots with SAR 4.7 billion.

Residential Mortgages to Individuals by Product Type (SAR mln)*

Year

Villas

Apartments

Land Plots

2018

21.97

3.41

2.36

2019

56.52

11.31

11.14

2020

93.26

21.92

35.61

2021

96.19

28.40

27.95

2022

83.97

27.24

9.07

2023

53.33

20.25

4.16

2024

58.30

28.09

4.68

2025

51.44

24.30

4.68

Residential mortgages granted to individuals by financing firms in Saudi Arabia dropped by 3% YoY to SAR 2.49 billion, marking its lowest level in seven years.

Residential Mortgages to Individuals from Financing Firms (SAR mln)*

Year

Value

Change

2016

2166

—

2017

2102

(3%)

2018

2461

17%

2019

5287

115%

2020

4592

(13%)

2021

3767

(18%)

2022

3086

(18%)

2023

3057

(1%)

2024

2568

(16%)

2025

2487

(3%)

Residential mortgages granted to individuals by banks in Saudi Arabia retreated 12% year-on-year (YoY) to SAR 80.4 billion in 2025, data issued by the Saudi Central Bank (SAMA) showed.

Novemberhadthe lowest value in 2025 in terms of the volume of new residential real estate financing per month, at about SAR 4.47 billion, recording the lowest level in over two and a half years.

SAMA reduced the reverse repo and repo rates three times during the past year to 375 basis points and 425 basis points, respectively, in conjunction with the US Federal Reserve’s decision.

According to data issued by SAMA, 108,800 contracts were concluded between banks and individuals in 2025.

The average value of new residential mortgages declined by 1% YoY in 2025, reaching SAR 739,000.

Financing for residential villas accounted for the largest share of the total mortgages provided by banks during 2025, with a value of SAR 51.4 billion, at 64%. Residential apartments came in second place with SAR 24.3 billion, followed by land plots with SAR 4.7 billion.

Residential Mortgages to Individuals by Product Type (SAR mln)*

Year

Villas

Apartments

Land Plots

2018

21.97

3.41

2.36

2019

56.52

11.31

11.14

2020

93.26

21.92

35.61

2021

96.19

28.40

27.95

2022

83.97

27.24

9.07

2023

53.33

20.25

4.16

2024

58.30

28.09

4.68

2025

51.44

24.30

4.68

Residential mortgages granted to individuals by financing firms in Saudi Arabia dropped by 3% YoY to SAR 2.49 billion, marking its lowest level in seven years.

Residential Mortgages to Individuals from Financing Firms (SAR mln)*

Year

Value

Change

2016

2166

—

2017

2102

(3%)

2018

2461

17%

2019

5287

115%

2020

4592

(13%)

2021

3767

(18%)

2022

3086

(18%)

2023

3057

(1%)

2024

2568

(16%)

2025

2487

(3%)