Recent data showed continued momentum in the residential real estate finance market in Saudi Arabia, as the value of new financing provided to individuals by commercial banks increased by 3.7% during the second quarter of 2025 compared to the same period last year, bringing the total financing to 19.6 billion riyals.
The “Real Estate Sector Performance Report” issued by The General Authority for Real Estate. The "Real Estate Sector Performance" report issued by The General Authority for Real Estate showed that new residential real estate financing provided by financing companies increased by 3.2% during the second quarter of 2025 compared to the same quarter of 2024, while the total value of existing mortgage loans reached about 961.44 billion riyals by the end of the second quarter of the year.
The report showed that the total value of existing mortgage loans increased by 3.2% during the second quarter of 2025 compared to the same quarter of 2024, while the total value of existing mortgage loans amounted to about 961.44 billion riyals by the end of the second quarter of the year. The report indicated a remarkable growth in the value of loans provided by commercial banks by 14.5% during Q2 2025 compared to the previous year, while the growth rate in loans provided by finance companies amounted to 4.1% for the same period.
The report indicated a remarkable growth in the value of loans provided by commercial banks by 14.5% during Q2 2025 compared to the same quarter of 2024.
Real estate prices
In terms of price movements, the Kingdom's real estate price index recorded a rise of 3.2% during Q2 2025 compared to Q2 2024. The Consumer Price Index (CPI) for "actual rents for main residence" increased by 8.9% during June 2025 compared to the same month last year, while the index for "rent paid for residence" increased by 8.7% during the same period.
On the labor market, the Kingdom's Real Estate Price Index (RPI) recorded a rise of 3.2% during the second quarter of 2025 compared to the second quarter of 2024. <In terms of the labor market, the number of workers in the real estate and construction sectors reached 3.5 million by Q2 2025, registering a significant annual growth of 18.7%. The percentage of Saudis working in this sector amounted to 13.5%.
Specifically in real estate activities, the number of active participants reached 57.136 thousand workers as of Q2 2025, an increase of 5.8% compared to last year, with 38.8% of Saudis among them.
In the construction sector, the number of active participants reached 13.5%. In the construction sector, the number of employees reached 3.4 million in Q1 2025, registering a growth of 19% compared to Q1 2024, while the percentage of Saudis working in the sector reached 13% until the same period.
As of Q1 2025, the number of employed participants reached 57.136 thousand workers, an increase of 5.8% compared to last year.
