According to the data, the decrease in the value of financing amounted to SAR 7.82 billion, reflecting increasing pressure on the local real estate market and a noticeable slowdown in demand for residential financing.
<The total volume of new real estate financing provided to individuals by banks and finance companies reached SAR 11.98 billion during the first two months of this year, compared to SAR 19.8 billion in the same period of 2025.
In parallel, the number of funded contracts decreased by 30.4% to 17.85 thousand contracts, compared to 25.64 thousand contracts in the comparable period last year, reflecting a significant decline in real estate activity during the beginning of the year.
Decrease in bank financing
When breaking down the financing provided by banks, the decline was more pronounced, as financing decreased by 40.32% to reach 11.56 billion riyals during the first two months of 2026, compared to 19.37 billion riyals in the same period of 2025.
The number of bank-financed contracts fell by 31.03% to 17.36 thousand contracts, compared to 25.17 thousand contracts in the same period last year, equivalent to a decrease of 7.8 thousand contracts. The data shows that financing was mainly directed towards the purchase of villas worth SAR 7.50 billion, while facilities for the purchase of apartments amounted to SAR 3.31 billion, and SAR 741 million was allocated for the purchase of land during the same period.
Data shows that financing was mainly directed towards the purchase of villas worth SAR 7.50 billion.
Slight decline in corporate financing
The financing provided by financing companies amounted to about 417 million riyals during the first two months of this year, compared to 422 million riyals in the comparative period of 2025, recording a slight decrease of 1.14% equivalent to 5 million riyals.
The facilities granted by financing companies were distributed to 204 million riyals for the purchase of apartments, 179 million riyals for the purchase of villas, and 34 million riyals for the purchase of land, bringing the total contracts financed by these companies to more than 489 contracts during the two months.New real estate financing provided by banks declined by 11.7% during 2025 to reach 80.42 billion riyals, compared to 91.06 billion riyals in 2024, through the financing of 108.79 thousand contracts. The volume of financing from finance companies decreased by 3.2% over the past year to reach 2.5 billion riyals, compared to 2.56 billion riyals in 2024, by financing 2.79 thousand contracts.
