mortgage loans issued by commercial banks in the Kingdom of Saudi Arabia recorded annual growth of 15.2% by the end of the first quarter of 2025, an increase of 121.73 billion riyals compared to the same period of the previous year.
According to data released by the Saudi Central Bank “SAMA,” the total cumulative volume of mortgage loans extended by banks to individuals and companies reached approximately 922.2 billion riyals by the end of the first quarter of 2025, the highest level ever reached by these loans, compared to 800.46 billion riyals at the end of the first quarter of 2024.
On a quarterly basis, mortgage loans rose by 4.4% compared to the end of the fourth quarter of 2024, reaching 883.28 billion riyals at that time, which means that loans granted during the first three months of this year totaled 38.92 billion riyals.
Individuals Account for the Largest Share
Individual loans accounted for the largest share of total mortgage loans, representing approximately 75.77% of the total at the end of the first quarter of 2025, equivalent to 698.76 billion riyals, compared to 625.24 billion riyals in the same quarter of 2024, representing an annual growth rate of 11.76% and an increase of 73.52 billion riyals.
On a quarterly basis, personal loans rose by 2.57% compared to their level at the end of the fourth quarter of last year, when they stood at 681.24 billion riyals. New loans granted to individuals during the first quarter of this year totaled approximately 17.52 billion riyals.
Corporate loans grow by more than 27% annually
In contrast, real estate corporate loans continued to post strong growth rates, rising by 27.5% year-over-year to reach 223.44 billion riyals by the end of the first quarter of 2025, compared to 175.23 billion riyals in the same period last year, an increase of 48.21 billion riyals.
On a quarterly basis, real estate company loans increased by approximately 10.6%, equivalent to 21.4 billion riyals, compared to the end of the fourth quarter of 2024, when loans stood at 202.04 billion riyals.
Continuous growth in recent years
The growth in the volume of mortgage loans in the Kingdom a continuous acceleration in mortgage financing over recent years; while mortgage loans did not exceed 200.4 billion riyals at the end of 2016, they rose gradually to 210.99 billion riyals in 2017 and 238.54 billion riyals in 2018, then jumped to 297.37 billion riyals in 2019.
In 2020, the value of loans reached 428.41 billion riyals, then rose to 568.86 billion riyals by the end of 2021, and reached 687.83 billion riyals by the end of 2022, then 767.27 billion riyals by the end of 2023, before reaching 883.28 billion riyals by the end of 2024 and hitting a record high of 922.2 billion riyals in the first quarter of 2025.
