The volume of new residential financing provided to individuals in Saudi Arabia recorded a slight growth during the period from January to October 2025, reaching 1.66% year-on-year, reflecting continued financing activity in the residential sector.
Data from the Saudi Central Bank (SAMA) showed that the value of new residential financing in the Kingdom of Saudi Arabia grew slightly during the period from January to October 2025, reaching 1.66% year-on-year. <Data from Saudi Central Bank (SAMA) showed that the value of new residential financing increased by about 1.18 billion riyals compared to the similar period last year. The total financing provided by banks and finance companies amounted to about 72.37 billion riyals during the period from January to the end of October 2025, compared to 71.19 billion riyals during the same period in 2024.
The number of financed contracts also witnessed a limited increase of 0.27%, equivalent to 261 contracts year-on-year, bringing the total number of contracts to 96.65 thousand contracts, compared to 96.4 thousand contracts during the comparable period last year.
The number of contracts financed increased by 0.27%, equivalent to 261 contracts year-on-year, reaching 96.65 thousand contracts, compared to 96.4 thousand contracts during the comparable period last year.
Banks drive housing finance growth
Banks continued their pivotal role in supporting housing finance, as the value of financing provided to individuals by banks increased by 1.95% since the beginning of 2025 until October, reaching SAR 70.41 billion, compared to SAR 69.06 billion during the corresponding period of 2024, an increase of SAR 1.35 billion.
Banks continued to play a pivotal role in supporting housing finance. <The number of contracts financed by banks increased by 0.6% to 94.41 thousand contracts, compared to 93.86 thousand contracts during the same period last year. The financing facilities were distributed by 43.67 billion riyals for the purchase of villas, 21.44 billion riyals for the purchase of apartments, in addition to 3.93 billion riyals to finance the purchase of land.
Finance companies" financing declined
On the other hand, residential financing provided by finance companies recorded a decline during the same period, as total financing amounted to about 1.97 billion riyals during the first ten months of 2025, compared to 2.13 billion riyals in the same period of 2024, a decrease of 7.74%, equivalent to 165 million riyals.
Finance companies financed SAR 1.04 billion for the purchase of apartments, SAR 647 million for the purchase of villas, and SAR 283 million for the purchase of land. The number of contracts financed decreased to 2.25 thousand contracts, compared to 2.53 thousand contracts in the comparable period last year, a decrease of 11.14%, equivalent to 282 contracts.
The number of contracts financed decreased to 2.25 thousand contracts, compared to 2.53 thousand contracts in the comparable period last year.
Strong performance in 2024
New residential financing for individuals in Saudi Arabia grew by 15.88% year-on-year in 2024. Its value increased by SAR 12.83 billion, bringing the total financing to SAR 93.63 billion, compared to SAR 80.8 billion in 2023, reflecting strong demand and continued momentum in the housing finance market.
New housing finance for individuals in Saudi Arabia grew significantly during 2024, by 15.88% year-on-year.
