real estate financing in Saudi Arabia continues to set new record levels, driven by increasing demand for home ownership and expanding real estate activity, in light of government programs supporting the housing sector. By the end of 2025, official data revealed a new jump in the volume of real estate loans provided by commercial banks, approaching the trillion riyals barrier, an indicator that reflects the growing role of bank financing in supporting the real estate market and enhancing the investment and ownership movement in the Kingdom.
Data released by Saudi Central Bank (SAMA) showed that the total real estate loans provided by commercial banks in Saudi Arabia increased by 7.7% during 2025 on an annual basis, an increase of 68.02 billion riyals compared to the end of 2024. The cumulative value of real estate financing provided by banks to individuals and companies reached about 951.3 billion riyals by the end of the fourth quarter of 2025, the highest level ever recorded, compared to about 883.28 billion riyals in the same period of 2024.
The cumulative value of real estate financing provided by banks to individuals and companies reached about 951.3 billion riyals by the end of the fourth quarter of 2025, the highest level ever recorded.
Quarterly growth at year-end
On a quarterly basis, real estate loans grew during the fourth quarter of 2025 by 1.4% compared to the end of the third quarter of the same year. Total loans amounted to 937.99 billion riyals at the end of the third quarter, before rising in the fourth quarter with an increase of about 13.3 billion riyals.
During 2025, individuals accounted for the largest share of real estate financing provided by banks, as the value of loans directed to them amounted to 48.72 billion riyals, while companies received real estate financing worth 19.31 billion riyals.
Individuals dominate real estate financing
Individuals continued to dominate the largest share of real estate financing in the Kingdom, as their loans accounted for about 76.73% of total real estate loans by the end of Q4 2025, compared to 23.The total real estate loans granted to individuals amounted to SAR 729.96 billion by the end of the fourth quarter of 2025, compared to SAR 681.24 billion in the same period of 2024, an increase of SAR 48.72 billion, equivalent to an annual growth of 7.15%.
Quarter-on-quarter, retail mortgage loans recorded a slight increase during the fourth quarter of 2025, rising to SAR 729.96 billion compared to SAR 726.15 billion at the end of the third quarter, achieving a growth of 0.5%, equivalent to additional financing of about SAR 3.8 billion.
Quarter-on-quarter, retail mortgage loans recorded a slight increase during the fourth quarter of 2025.
Corporate financing exceeds 221 billion riyals
In contrast, the cumulative real estate loans provided to companies in the Kingdom amounted to SAR 221.35 billion by the end of the fourth quarter of 2025, compared to SAR 202.04 billion in the same period of 2024. Thus, corporate real estate financing increased by SAR 19.31 billion in one year, registering an annual growth rate of 9.56%. In terms of quarterly performance, corporate real estate loans increased by 4.5% during the fourth quarter of 2025, having increased by about 9.5 billion riyals compared to the level at the end of the third quarter, which amounted to 211.85 billion riyals.
Accelerated growth in recent years
The figures reveal a remarkable acceleration in the growth of real estate financing in the Kingdom during the past years, as the volume of real estate loans at commercial banks increased from 200.4 billion riyals at the end of 2016 to 210.99 billion riyals in 2017, then to 238.54 billion riyals in 2018. Real estate loans continued to rise to reach 297.37 billion riyals by the end of 2019, before jumping to 428.41 billion riyals in 2020.
In subsequent years, growth continued at a strong pace, with total mortgage loans reaching SR 568.86 billion at the end of 2021, then SR 687.83 billion in 2022, rising to SR 767.27 billion in 2023, reaching SR 883.28 billion by the end of 2024, before approaching the SR 1 trillion mark in 2025.
These successive jumps in real estate financing reflect the expansion of the real estate market in the Kingdom, the high demand for residential ownership, and the expansion of banks in providing real estate financing solutions to individuals and companies within the financing system supporting the housing sector.
