The real estate finance residential market in Saudi Arabia during July 2025 witnessed a state of slowdown, as data from Saudi Central Bank (SAMA) revealed that the volume of new real estate financing provided to individuals by banks decreased to 6.42 billion riyals, down nearly 9% compared to the same month in 2024.

Despite this decline, the average value of real estate finance increased to about 748.3 thousand riyals, a slight increase of 21%. Despite this decline, the average value of real estate financing rose to about 748.3 thousand riyals, a slight increase of 2% compared to last year, while the total contracts concluded between banks and individuals during July amounted to about 8.6 thousand contracts.

Villas in the lead, followed by apartments and land

The data showed that residential villas continued to account for the largest share of the total financing provided by banks during July 2025, amounting to 4.11 billion riyals, equivalent to 64% of the total financing. Apartments came second with a total of 1.93 billion riyals, while residential lands recorded funding of only 371 million riyals.

Financing developments from the beginning of 2024 to July 2025

When looking at the monthly trajectory of real estate financing since January 2024, it is clear that financing for villas witnessed sharp fluctuations, as it started the year at 5.13 billion riyals in January 2024, then fell in February to 4.52 billion riyals, only to rise again in March, recording 4.91 billion riyals. In April, funding fell to 3.68 billion riyals as one of its lowest levels, before rising again in June to 5.11 billion riyals, then falling in June to 3.42 billion riyals, reaching 4.38 billion riyals in July 2024.

Performance in the second half of 2024

In the second half of the same year, funding ranged from a low of 3.79 billion riyals in August to a record peak of 8.12 billion riyals in December 2024. Entering 2025, funding in January amounted to 6.63 billion riyals, falling to 5.57 billion riyals in February, 5.18 billion riyals in March, and 3.93 billion riyals in April. After a relative improvement in May to 4.99 billion riyals, funding fell in June to 3.25 billion riyals before reaching 4.11 billion riyals in July 2025.

Financing for apartments started at SAR 1.96 billion in January 2024, then fluctuated between a low of SAR 1.38 billion in April and a peak of SAR 3.48 billion in December 2024. By 2025, apartments recorded 3.35 billion riyals in January, gradually declining to 1.85 billion riyals in May and 1.57 billion riyals in June, before stabilizing at 1.93 billion riyals in July 2025.

As for residential land, it recorded SAR 440 million in January 2024, reached its highest level of SAR 534 million in May 2025, while it fell to SAR 263 million in June 2024 as the lowest level during the period, to end July 2025 at SAR 371 million.

With regard to residential land, it recorded SAR 440 million in January 2024, and reached its highest level of SAR 534 million in May 2025.

The performance of real estate finance companies varies

On the other hand, data on residential real estate financing provided to individuals by financing companies showed a continued decline in July 2025 by about 4%, reaching 185 million riyals compared to 193 million riyals in the same month last year.

Data on residential real estate financing provided to individuals by financing companies showed a continued decline in July 2025 by about 4%, reaching 185 million riyals compared to 193 million riyals in the same month last year. <Over the past year and a half, these companies have recorded mixed performance, as funding in January 2024 amounted to about 273 million riyals, to decline in January 2025 to 224 million riyals, a decrease of 18%. In February, funding fell from SAR 268 million in 2024 to SAR 198 million in 2025, a sharp decline of 26%. In March, funding was recorded at 197 million riyals compared to 225 million riyals a year ago, down 13%.

In March, funding was recorded at 197 million riyals compared to 225 million riyals a year ago, down 13%. <In April 2025, there was a notable exception with a strong growth of 49% to reach 214 million riyals, compared to only 143 million riyals in April 2024. However, the trend reversed in May to record funding of SAR 191 million versus SAR 252 million in May 2024, a decrease of 24%.

In June 2025, a notable exception emerged with a strong growth of 49%.

In June 2025, real estate finance companies recorded 169 million riyals, a slight increase of 5% from June 2024, before the figure fell again in July to 185 million riyals from 193 million riyals a year earlier.

Real estate finance companies recorded 169 million riyals, a slight increase of 5% from June 2024.