Data released by Saudi Central Bank (SAMA) revealed a significant growth in the volume of new residential mortgage financing provided to individuals by banks during November 2024, reflecting remarkable activity in the real estate sector in the Kingdom.

Data released by Saudi Central Bank (SAMA)

Growth of real estate financing from banks:

The volume of new residential mortgage financing for individuals reached 10.1 billion riyals in November 2024, up 51% compared to the same month in 2023. The figure is the highest since August 2022, indicating a strong recovery in the real estate finance market.

Total contracts and funding level:

<According to SAMA reports, about 13.1 thousand contracts were signed between banks and individuals during the same month. The average value of new real estate financing increased by 5% to reach 765.8 thousand riyals compared to November 2023.

According to SAMA reports, about 13.1 thousand contracts were signed between banks and individuals during the same month.

Distribution of financing by property type:

Residential villas accounted for the largest share of the financing provided, amounting to SAR 6.5 billion, representing 64% of the total financing. Apartments came second with SAR 3.15 billion, followed by land with SAR 408 million.

Financing from finance companies declines:

In contrast to the strong performance of banks, residential real estate financing provided to individuals by finance companies declined by 35% compared to the same period of the previous year, reaching SAR 201 million in November 2024.

This strong growth in residential real estate financing from banks reflects the vitality of the real estate sector in the Kingdom, driven by growing demand from individuals, especially for residential villas. However, the decline in financing from finance companies remains an indicator worth monitoring to better understand market dynamics.