Gross real estate financing for new residential financing for individuals, provided through financing companies, recorded a significant decline of 10.7% during May 2025, compared to the previous April, according to the monthly statistical bulletin issued by Saudi Central Bank (SAMA).
Gross financing by the end of May amounted to 191 million riyals, compared to 214 million riyals in April 2025, an indication of a relative slowdown in demand for real estate financing from this sector.
Total financing at the end of May amounted to 191 million riyals, compared to 214 million riyals in April 2025, indicating a relative slowdown in demand for real estate financing from this sector.
Villas lead despite decline
New real estate financing was distributed across three main sectors, with residential villas maintaining the lead in financing, although it declined to SAR 70 million by the end of May, compared to SAR 73 million in April.
Residential villas maintained the lead, despite a decline to SAR 70 million by the end of May, compared to SAR 73 million in April.
<The volume of financing allocated to apartments declined further, from SAR 110 million in April to SAR 98 million in May.
As for land purchase financing, it recorded a sharp decline of nearly 26%, falling from SAR 31 million in April to SAR 23 million in May 2025.
With regard to land purchase financing, it recorded a sharp decline of nearly 26%, falling from SAR 31 million in April to SAR 23 million in May 2025.
Year-on-year decline of 24%... Apartments relatively holding up
On an annual basis, SAMA data showed a sharper decline in real estate financing provided by finance companies, falling by 24.2%, from 252 million riyals in May 2024 to 191 million riyals in May 2025.Financing for villas dropped significantly during the year, from SAR 113 million to SAR 70 million, while financing for apartments fell from SAR 120 million to SAR 98 million, recording the lowest rate of decline among the sectors.
On the other hand, land purchase financing recorded a slight annual increase from SAR 19 million to SAR 23 million, the only sector that witnessed an annual growth in the value of financing.
