New residential mortgage financing provided by banks to individuals in Saudi Arabia declined year-on-year during the third quarter of 2026, despite an increase in the number of contracts signed during the same period. According to data from the Saudi Central Bank (SAMA ), total new residential mortgage financing provided by banks to individuals reached approximately SAR 17.27 billion during the third quarter of 2026, compared to SAR 18 billion during the same quarter of 2025, registering a decrease of 4.61%.
Regarding the distribution of financing according to property type, residential villas accounted for the largest share, with financing provided for their purchase reaching approximately 11.1 billion riyals during the third quarter of 2026, compared to 11.5 billion riyals in the same period last year.
Financing allocated for residential apartments amounted to approximately 5.2 billion riyals, compared to 5.5 billion riyals during the third quarter of 2025, while financing provided for land purchases reached 866 million riyals, compared to approximately one billion riyals, according to the comparison included in the data.
The number of contracts increased by 18.6%
Despite the decline in the total value of financing on an annual basis, the number of new residential mortgage financing contracts for individuals increased during the third quarter of 2026, reaching 29,111 contracts, compared to 24,535 contracts during the same period of 2025, an increase of 18.6%.
Funding increased by 5.3% compared to the second quarter.
On a quarterly basis, new residential mortgage financing for individuals recorded an increase during the third quarter of 2026, reaching approximately 17.2 billion riyals, compared to 16.4 billion riyals during the second quarter of the same year, achieving an increase of 5.31 TP3T.
Villas topped the list of real estate products in terms of financing value, as the financing allocated to them rose to 11.1 billion riyals during the third quarter, compared to about 10.5 billion riyals in the second quarter.
Financing for residential apartments also increased to 5.2 billion riyals, compared to 4.7 billion riyals during the previous quarter, while financing allocated for land amounted to about 866 million riyals, compared to about one billion riyals.
Funding growth 9.6% compared to the first quarter
Compared to the first quarter of 2026, the value of new residential mortgage financing for individuals during the third quarter rose to about 17.2 billion riyals, compared to 15.7 billion riyals at the beginning of the year, an increase of 9.61 TP3T.
Regarding the types of real estate, financing provided for the purchase of villas recorded approximately 11.1 billion riyals during the third quarter, compared to 10.3 billion riyals in the first quarter, while financing for residential apartments amounted to 5.2 billion riyals, compared to 4.2 billion riyals during the same period.
As for the financing allocated to land, it reached 866 million riyals during the third quarter, compared to about one billion riyals in the first quarter of 2026.
Funding is up 11% compared to the fourth quarter of 2025
The improvement in the value of new residential mortgage financing for individuals extended to include the comparison with the fourth quarter of 2025, as it rose to about 17.2 billion riyals during the third quarter of 2026, compared to 15.5 billion riyals in the last quarter of last year, with a growth rate of 11%.
According to the distribution of financing, residential villas recorded 11.1 billion riyals during the third quarter, compared to 10.3 billion riyals in the fourth quarter of 2025, while the financing allocated to apartments amounted to 5.2 billion riyals, compared to 4.2 billion riyals.
Regarding land, financing provided for its purchase recorded 866 million riyals during the third quarter, compared to about one billion riyals in the fourth quarter of last year.
The number of villa financing contracts decreased by 3.3%
Regarding the number of financing contracts allocated to residential villas, the data showed that 11,170 contracts were recorded during the third quarter of 2026, compared to 11,547 contracts during the same period of 2025, a decrease of 3.3%.
The decline in the number of villa financing contracts on an annual basis coincides with a rise in the total number of new residential mortgage financing contracts for individuals by 18.6%, reaching 29,111 contracts during the third quarter of this year, compared to 24,535 contracts in the third quarter of last year.
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