Data from the Saudi Central Bank showed a continued decline in new residential mortgage financing provided by banks on a year-over-year basis during the second quarter of 2026, despite showing an improvement compared to the first and fourth quarters of the previous year.
According to the Central Bank’s monthly statistical bulletin, the value of new residential mortgage financing new residential mortgage financing granted by banks reached 16.401 billion riyals during the second quarter of 2026, a decrease of 5.5% compared to 18.097 billion riyals in the same period of 2025.
Financing for villas accounted for the largest share at 10.582 billion riyals, followed by financing for apartments at 4.747 billion riyals, and then land at 1.032 billion riyals. On a year-over-year basis, villa financing declined from 12.181 billion riyals to 10.582 billion riyals, while apartment financing fell from 5.491 billion riyals to 4.747 billion riyals, and land financing declined from 1.320 billion riyals to 1.032 billion riyals.
In contrast, residential real estate financing rebounded on a quarterly basis, rising by 4.1% compared to the first quarter of 2026, as its value increased from 15.747 billion riyals to 16.401 billion riyals.
The quarterly growth spanned all sectors, with villa financing rising from 10.118 billion riyals to 10.582 billion riyals, apartment financing increased from 4.608 billion riyals to 4.747 billion riyals, while land financing rose slightly from 1.021 billion riyals to 1.032 billion riyals.
The data also showed a 5.4% increase in new residential real estate financing compared to the fourth quarter of 2025, which recorded 15.560 billion riyals.
Compared to the fourth quarter, financing for villas rose from 10.314 billion riyals to 10.582 billion riyals, and financing for apartments rose from 4.246 billion riyals to 4.747 billion riyals, while land financing increased from 1 billion riyals to 1.032 billion riyals, reflecting a gradual improvement in residential lending activity during 2026.
