In a new sign of slowing demand for mortgage financing, The Saudi Central Bank “SAMA” reported a decline in the volume of new housing loans extended to individuals by banks to 6.297 billion riyals in April 2025, compared to 8.399 billion riyals in March of the same year, representing a 25% decline on a month-over-month basis.

This decline comes despite a notable year-over-year growth of 17.9%, as mortgage financing for individuals in April of last year stood at only 5.341 billion riyals.

Villas Lead the Way Despite the Decline

According to the statistical bulletin issued by “SAMA,” residential villas continued to top the list of the most sought-after real estate products, accounting for 62.4% of the total residential loans granted to individuals in April, with a value of 3.93 billion riyals.

However, it is noteworthy that this figure represents a decline compared to March, which recorded financing of 5.186 billion riyals—a monthly decrease of 24%.

Shifts in consumer behavior?

Real estate experts believe that the decline in monthly mortgage financing reflects shifts in consumer behavior, driven by several factors, most notably: rising interest rates, saturation in some local markets, and the shift by certain segments of the population toward new financing alternatives or less expensive housing options, such as apartments or ready-to-move-in units.

Housing Support and Financing Solutions Take Center Stage

Despite the decline in monthly financing, data indicates that relevant authorities are continuing their efforts to expand the base of beneficiaries of housing programs. According to recent data, approximately 870,000 citizens have benefited from housing support programs, in addition to the announcement of three new financing solutions to enhance homeownership capacity.

In this context, more than one billion riyals were deposited into the accounts of beneficiaries of the “Sakani” program last May, as part of ongoing efforts to support the housing sector and increase homeownership rates among citizens.