New residential mortgage financing provided by banks in Saudi Arabia grew by 4.1% during the second quarter of 2026 compared to the first quarter of the same year, driven by an increase in financing directed toward villas, apartments, and land, at a time when activity remained below the levels recorded a year earlier.
The monthly statistical bulletin issued by the Saudi Central Bank, that total new residential mortgage financing to 16.401 billion riyals during the second quarter of 2026, compared to 15.747 billion riyals in the first quarter of the year.
The increase was driven by a rise in financing for villa purchases to 10.582 billion riyals, compared to 10.118 billion riyals in the first quarter, while financing for apartments rose to 4.747 billion riyals from 4.608 billion riyals, and financing for land recorded a slight increase to 1.032 billion riyals, compared to 1.021 billion riyals.
The data also showed continued improvement compared to the fourth quarter of 2025, as the volume of new residential real estate financing rose by 5.4%, climbing from 15.560 billion riyals to 16.401 billion riyals.

All three residential sectors saw growth during this period, with financing for villas rising from 10.314 billion riyals to 10.582 billion riyals, apartment financing increased from 4.246 billion riyals to 4.747 billion riyals, and land financing rose from 1 billion riyals to 1.032 billion riyals.
Despite this quarterly recovery, data from the Saudi Central Bank showed a year-over-year decline in new residential mortgage activity of 5.5%, as total financing fell from 18.097 billion riyals in the second quarter of 2025 to 16.401 billion riyals during the same period in 2026.

By sector, financing for villas declined year-over-year from 12.181 billion riyals to 10.582 billion riyals, while financing for apartments fell from 5.491 billion riyals to 4.747 billion riyals, while land financing fell from 1.320 billion riyals to 1.032 billion riyals, reflecting a continued slowdown in financing compared to last year, despite improved performance during the final quarters of 2026.