New residential mortgage financing granted to individuals by finance companies in Saudi Arabia recorded annual growth during the third quarter of 2026, after its value rose to 604 million riyals, compared to about 559 million riyals in the same period of 2025, an increase of 8%, according to data from the monthly statistical bulletin issued by the Saudi Central Bank .
The value of financing during the third quarter was distributed across three main activities, including the purchase of villas, apartments and land. The apartment sector accounted for the largest share with a total of 310 million riyals, compared to 295 million riyals during the same quarter of the previous year, achieving growth of approximately 5.1%.
Land financing came in second in terms of growth rate, rising to SAR 84 million, compared to SAR 53 million during the third quarter of 2025, an increase of approximately 58.51 TP3T. In contrast, villa financing remained relatively stable at SAR 210 million, compared to SAR 211 million in the same period last year.
Quarterly decline despite annual growth
Based on a comparison with the second quarter of 2026, new residential mortgage financing provided by finance companies trended downward, recording a decline of 15%, after reaching 604 million riyals, compared to 711 million riyals during the previous quarter.
The decline affected all types of real estate; financing for villas fell to SAR 210 million, compared to SAR 269 million in the second quarter, while financing for apartments decreased to SAR 310 million, down from SAR 332 million. Financing for land purchases also declined to SAR 84 million, compared to SAR 111 million during the same period.
Increase compared to the first quarter of the year
Despite the quarterly decrease, the data showed an improvement in total financing during the third quarter compared to the first quarter of 2026, by a percentage of 3.2%, reaching 604 million riyals, compared to 585 million riyals.
The performance of the three sectors varied during this comparison; financing for villas declined to SAR 210 million, compared to SAR 249 million in the first quarter, while financing for apartments increased to SAR 310 million, compared to SAR 279 million. Financing for land also rose to SAR 84 million, compared to SAR 57 million during the first quarter of the year.
A decrease of 18% compared to the last quarter of 2025
When comparing the performance of the third quarter of 2026 with the fourth quarter of last year, the bulletin revealed a decline in the total new residential mortgage financing provided by finance companies by 18%, settling at 604 million riyals, compared to 737 million riyals in the last quarter of 2025.
The decline extended to all three real estate sectors; financing for villas fell to SAR 210 million, compared to SAR 284 million, while financing for apartments decreased to SAR 310 million, compared to SAR 353 million. Land financing also declined to SAR 84 million, compared to SAR 100 million during the fourth quarter of last year.
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