Despite positive indicators at the annual level, the new residential mortgage granted by banks to individuals in the Kingdom recorded a remarkable monthly decline of 25% by the end of April 2025, compared to March of the same year, in a clear reflection of the fluctuations in demand for real estate products during the recent period.
According to the monthly statistical bulletin issued by the Saudi Central Bank SAMA, the total amount of new residential mortgage financing granted by banks to individuals in the Kingdom According to the monthly statistical bulletin issued by Saudi Central Bank "SAMA", the total new residential mortgage financing for individuals at the end of April amounted to about 6.297 billion riyals, compared to 8.399 billion riyals in March, meaning a decline of more than 2.1 billion riyals in just one month.
This decline came as a result of the decrease in financing in various types of real estate products, as the financing of residential villas decreased from 5.186 billion riyals in March to 3.930 billion riyals in April, the financing of residential apartments decreased from 2.798 billion riyals to 2.064 billion riyals, and the residential land sector witnessed a decline from 415 million riyals to 304 million riyals in the same period.
Residential land decreased from 415 million riyals to 304 million riyals in the same period.
Yearly performance reflects recovery
Despite the monthly decline, the bulletin revealed a marked improvement in year-on-year performance, with total mortgage financing at the end of April 2025 rising to SAR 6.297 billion, compared to SAR 5.341 billion in April 2024, registering an estimated annual growth of more than SAR 956 million.
The year-on-year growth was driven by higher financing in almost all sectors, with villas financing reaching SAR 3.930 billion compared to SAR 3.681 billion in April last year, and apartments achieved a significant jump in financing to record SAR 2.064 billion compared to SAR 1.389 billion in the same month of 2024, while land financing increased from SAR 270 million to SAR 304 million.
Financing for residential apartments increased to SAR 2.064 billion compared to SAR 1.389 billion in the same month of 2024.
Mortgage loans rise quarterly and annually
In a related context, official data showed an increase in total real estate loans provided by commercial banks during the first quarter of 2025 by 4.4% compared to the fourth quarter of 2024, as the value of these loans amounted to 922.198 billion riyals, compared to 883.279 billion riyals, an increase of 38.919 billion riyals.
Official data showed an increase in total real estate loans provided by commercial banks during the first quarter of 2025 by 4.4% compared to the fourth quarter of 2024. <According to reports, these loans were distributed in two main segments: The first for individuals, which rose from 681.240 billion riyals to 698.760 billion riyals, and the second for companies, which recorded growth from 202.038 billion riyals to 223.438 billion riyals, reflecting the growing interest of the business sector to invest in the real estate market.
According to the reports, these loans were distributed in two main segments. <On an annual basis, total real estate loans increased significantly compared to the first quarter of last year 2024, when the total amounted to 800.445 billion riyals. This means that the sector achieved an annual growth of about 121.7 billion riyals. Individual loans were at the forefront of this growth, jumping from 625.240 billion riyals to 698.760 billion riyals, while corporate loans rose from 175.225 billion riyals to 223.438 billion riyals.
Reading the real estate landscape
These figures reveal an overlapping real estate scene; the residential sector is witnessing a gradual decline in the pace of monthly financing, offset by a gradual and clear improvement in annual performance, reflecting the resilience of the real estate market in the Kingdom and its response to economic factors and financing policies applied by banks and relevant institutions.
<The monthly decline is attributed to a range of potential factors, most notably interest rate changes, banks' precautionary policies, as well as seasonal factors and changes in individuals' buying behavior. On the other hand, the continued annual growth reflects a state of confidence and relative stability in the sector, especially with the expansion of financing options and the development of digital systems related to the issuance of licenses and approvals.
