In a fresh boost to the housing market, new residential mortgage financing provided by Saudi banks rose by 17% in May 2025, reaching SR7.376 billion, compared to SR6.297 billion in April of the same year, according to data from Saudi Central Bank (SAMA).
Despite the monthly growth, the data showed a year-on-year decline of 3.9%, compared to SR7.674 billion in May 2025, according to the Saudi Central Bank.
But despite this monthly growth, the data showed an annualized decline of 3.9%, compared to financing of 7.674 billion riyals in May 2024, reflecting some fluctuation in the pace of real estate demand over the annual term.
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Villas lead the real estate landscape
Villas came at the forefront of citizens" choices, accounting for 67.7% of total new real estate financing in May, with a value of 4.992 billion riyals.
Villa financing recorded a remarkable monthly growth of 27% compared to April, but declined by 2.4% year-on-year, after registering 5.114 billion riyals in May 2024.
Apartments lose appeal
In contrast, real estate financing for the purchase of apartments decreased by 10.4% compared to the previous month, recording 1.850 billion riyals, compared to 2.064 billion riyals in April. It also fell year-on-year by 14%, as financing amounted to 2.153 billion riyals in May last year.
Apartments accounted for only 25% of the new mortgage financing, indicating a change in the preferences of beneficiaries during the recent period.
Land records the highest growth
Real estate financing for land purchase jumped significantly by 75.7% month-on-month, registering 534 million riyals in May, compared to 304 million riyals in April. It also increased by 30.9% year-on-year, compared to 408 million riyals in May 2024, with land accounting for 7.2% of the total financing.
Real estate financing for the purchase of land jumped significantly by 75.7% month-on-month, recording 534 million riyals in May, compared to 304 million riyals in April.
Rising number of contracts signed
The number of new retail mortgage contracts during May 2025 was 9961, up from 8204 in April, but slightly down when compared to May 2024, which stood at 10123.
Reading the real estate landscape
These figures reflect a relative recovery in demand for real estate financing during May, especially for villas and land, while apartments seem to suffer from a decline in investment or residential attractiveness, which may prompt real estate developers to reconsider their priorities.
These figures reflect a relative recovery in demand for real estate financing during the month of May, especially for villas and land.
Villas lead the real estate landscape
Villas came at the forefront of citizens" choices, accounting for 67.7% of total new real estate financing in May, with a value of 4.992 billion riyals.
Villa financing recorded a remarkable monthly growth of 27% compared to April, but declined by 2.4% year-on-year, after registering 5.114 billion riyals in May 2024.
Apartments lose appeal
In contrast, real estate financing for the purchase of apartments decreased by 10.4% compared to the previous month, recording 1.850 billion riyals, compared to 2.064 billion riyals in April. It also fell year-on-year by 14%, as financing amounted to 2.153 billion riyals in May last year.
Apartments accounted for only 25% of the new mortgage financing, indicating a change in the preferences of beneficiaries during the recent period.
Land records the highest growth
Real estate financing for land purchase jumped significantly by 75.7% month-on-month, registering 534 million riyals in May, compared to 304 million riyals in April. It also increased by 30.9% year-on-year, compared to 408 million riyals in May 2024, with land accounting for 7.2% of the total financing.
Real estate financing for the purchase of land jumped significantly by 75.7% month-on-month, recording 534 million riyals in May, compared to 304 million riyals in April.
Rising number of contracts signed
The number of new retail mortgage contracts during May 2025 was 9961, up from 8204 in April, but slightly down when compared to May 2024, which stood at 10123.
Reading the real estate landscape
These figures reflect a relative recovery in demand for real estate financing during May, especially for villas and land, while apartments seem to suffer from a decline in investment or residential attractiveness, which may prompt real estate developers to reconsider their priorities.
