The real estate finance sector in Saudi Arabia is witnessing remarkable growth supported by legislative policies, housing initiatives, and payment facilities, in line with Vision 2030, which aims to raise the percentage of residential ownership to 70% by 2030.
Real estate finance in Saudi Arabia is witnessing remarkable growth supported by legislative policies, housing initiatives, and payment facilities.
Stats on real estate bank financing
According to the statement of Minister of Municipalities and Housing Majid Al-Hogail, the volume of real estate financing until 2025 amounted to about 900 billion riyals, and individual mortgage financing from banks in 2023 reached about 77.7 billion riyals, and housing financing for individuals from banks in 2024 amounted to 91.1 billion riyals.According to the report Real Estate Development Fund, mortgage financing within the housing support programs increased by 16.4% to reach 62.9 billion riyals in 2024, and the number of new housing finance contracts in November 2024 reached about 13 thousand contracts.
Villas accounted for the largest share of financing from banks in 2024 with a value of about 85.5 billion riyals, followed by apartments with about 28.1 billion riyals, then land worth 4.7 billion riyals, and banks granted new housing financing worth 34.1 billion riyals to individuals in the first four months of 2025.
The reduction in interest rates led to a significant increase in the volume of residential real estate financing, especially in the last months of 2024, which made some months record the best performance in more than two years, and the Real Estate Development Fund played a role in financing housing support programs, and the diversity of products between ready-made units and under construction, covering the needs of different segments of citizens.
The real estate development fund played a role in financing housing support programs, and the diversity of products between ready-made units and under construction, covering the needs of different segments of citizens.
