The real estate finance housing for individuals in Saudi Arabia recorded a remarkable recovery during February 2025, as data from <a href="https://www.sama.gov.The Saudi Central Bank "SAMA“ data showed a significant rise in the volume of new financing provided to individuals through banks, reaching 8.91 billion riyals, achieving a jump of 28% compared to the same period in 2024, in a clear indication of the return of momentum to the residential sector.
Residential financing in Saudi Arabia showed a remarkable recovery during February 2025. According to SAMA's official data, February witnessed the signing of about 11.8 thousand new financing contracts between banks and individuals, with a remarkable increase in the average value of financing per contract, which amounted to 758 thousand riyals, a growth rate of 4% year-on-year.
Villas dominate the largest share
Residential villas are still the first choice of Saudis, accounting for 63% of the total value of mortgage financing provided during February, with a value of 5.57 billion riyals. Apartments came second with a total of 2.89 billion riyals, followed by land worth 436 million riyals.
Monthly development of financing by property type
SAMA's data indicates a remarkable development in the financing of villas and apartments from the beginning of 2024 to February 2025. While the financing of villas in January amounted to 6.64 billion riyals, it declined relatively in February to 5.57 billion riyals. As for the financing of apartments, it recorded a slight decrease from 3.35 billion riyals in January to 2.89 billion riyals in February, while land financing remained relatively stable around the level of 430-475 million riyals per month.
While the financing of villas in January reached 6.64 billion riyals, it decreased slightly in February to 5.57 billion riyals.
Finance companies out of the equation
On the other hand, residential real estate financing provided by finance companies witnessed a significant decline, falling by 26% in February to record only about 198 million riyals, confirming the continued dominance of banks in the real estate financing scene in the Kingdom.
