The Residential Real Estate Finance market in Saudi Arabia during March 2026 witnessed a significant decline in the volume of new financing provided to individuals, whether by banks or finance companies, according to data from the monthly statistical bulletin issued by the Saudi Central Bank.

Residential Real Estate Finance in the Kingdom of Saudi Arabia during the month of March 2026.

The data showed that the total new residential mortgage financing for individuals in the Kingdom decreased by 22.3% during March 2026, to record about 4.355 billion riyals, compared to 5.612 billion riyals in February of the same year. This financing is distributed between banks and finance companies, with banks clearly dominating the largest share of activity.

Decline in bank financing leads the decline
New residential real estate financing provided by Saudi banks recorded a decline of approximately 22% on a monthly basis, reaching 4.187 billion riyals in March 2026 compared to 5.371 billion riyals in February. This level also came down significantly year-on-year by 50% compared to March 2025, in which financing recorded about 8.339 billion riyals.

Villas capture the largest share
According to the sectoral breakdown, residential villas captured the largest share of bank financing with SAR 2.614 billion, compared to SAR 3.425 billion in February, while financing for apartments amounted to SAR 1.293 billion compared to SAR 1.616 billion in the previous month. Land financing fell to 280 million riyals compared to 330 million riyals in February.
Year-on-year, all sectors also declined sharply, with villa financing falling from 5.186 billion riyals in March 2025 to 2.614 billion riyals in March 2026, apartment financing fell from 2.798 billion riyals to 1.293 billion riyals, and land financing fell from 415 million riyals to 280 million riyals.

All sectors also declined sharply.

Banks record the lowest level since 2023
The data indicated that new residential real estate financing provided by banks during March 2026 recorded its lowest level since April 2023, when it reached about 4.The number of contracts concluded between banks and individuals during the same month amounted to about 6.4 thousand contracts, while the average value of financing fell to 655 thousand riyals, a decrease of 13% compared to the same period last year. Villas accounted for about 62% of the total bank financing, followed by apartments and land, confirming the continued focus on the most in-demand residential sector despite the overall decline.

The number of contracts concluded by banks and individuals during the same month was 6.4 thousand contracts.

Finance companies. Monthly decline versus annual growth
On the level of financing companies, the data recorded a decrease in new residential real estate financing provided to individuals by 30.2% in March 2026 compared to February, reaching about 168 million riyals compared to 241 million riyals in the previous month.
The financing was distributed among three main sectors, where the financing of villas recorded 70 million riyals compared to 103 million riyals in February, while financing apartments reached 75 million riyals compared to 111 million riyals, while land financing recorded 22 million riyals compared to 26 million riyals.