The new residential finance sector in Saudi Arabia recorded a growth of 25.35% during the period from January to the end of April 2025, compared to the same period in 2024, according to an analysis based on data from Saudi Central Bank (SAMA).
The value of new housing finance from banks and companies rose to SAR 35.53 billion during the first four months of the year, compared to the same period in 2024.
The value of new housing finance provided to individuals by banks and companies rose to 35.53 billion riyals during the first four months of this year, compared to 28.35 billion riyals in the same period last year, an increase of more than 7.18 billion riyals. The value of new housing finance increased to 35.53 billion riyals during the first four months of this year.
In addition to the increase in value, the number of contracts for retail financing saw a significant increase of 21.08%, equivalent to about 7.91 thousand additional contracts, bringing the total number of contracts to 45.43 thousand by the end of April 2025, compared to 37.52 thousand in the same period of 2024. The number of contracts financed increased by 21%.
Saudi banks alone provided about 34.07 billion riyals of total new housing finance, an annualized growth of 24.2%, up from 27.44 billion riyals in the same period of 2024.
The number of contracts financed through banks rose to 44.5 thousand contracts, compared to 37.41 thousand contracts during the corresponding period last year, an increase of 19%, equivalent to 7.09 thousand new contracts.
In terms of the types of housing units financed, villas accounted for the largest share of financing during the period, worth SAR 21.33 billion, followed by apartments worth SAR 11.11 billion, while financing for the purchase of residential land amounted to about SAR 1.63 billion. Financing for the purchase of residential land amounted to about SAR 1.63 billion.
Despite the annual rise, residential financing from banks recorded a month-on-month decline of approximately 25% in April 2025, with total financing amounting to about 6.29 billion riyals distributed on only 8.20 thousand contracts. New home financing from banks declined month-on-month by approximately 25% in April 2025.
In contrast, real estate finance companies recorded a decline in their activity during the first four months of 2025, as the financing they provided fell to 833 million riyals, compared to 910 million riyals in the same period of 2024, a decrease of 8.5%, equivalent to 77 million riyals.
The facilities provided by these companies consisted of 457 million riyals for the purchase of apartments, 248 million riyals for the purchase of villas, in addition to 128 million riyals for the purchase of residential lands.
The number of contracts financed by financing companies decreased to 931 contracts during the first four months of 2025, compared to 1084 contracts in the same period last year, a decrease of 14.11%, equivalent to 153 contracts. The number of contracts financed by financing companies decreased to 931 contracts during the first four months of 2025, compared to 1084 contracts in the same period last year, a decrease of 153 contracts.
It is noteworthy that last year (2024) also witnessed a growth in residential financing for individuals by 15.88%, an increase of 12.83 billion riyals from 2023. The value of residential financing in 2024 amounted to 93.63 billion riyals, compared to 80.8 billion riyals in 2023.
Growth in the number of funded contracts by 21%
Banks take the largest share of financing
Villas lead the scene... Apartments follow
Monthly slowdown in April
Finance companies decline in performance
2024 saw a year-on-year growth in housing finance of 15.88%
The value of residential financing in 2024 amounted to 93.63 billion riyals, compared to 80.8 billion riyals in 2023, driven by ongoing incentives for home ownership and the expansion of the banking and finance sector in providing more diversified financing solutions.
