The Residential Mortgage Market in Saudi Arabia slowed down during September 2025, as the volume of new financing provided to individuals by banks fell to 5.82 billion riyals, a 15.1% decline compared to the same period in 2024, according to data released by the Saudi Central Bank “SAMA”.
In the same context, only 8,000 new financing contracts were recorded between banks and individuals during September, reflecting the declining level of demand for mortgage financing. The average financing amount also fell to 728,000 riyals, a slight decrease of 1% compared to September of the previous year.
Villas Lead Residential Demand
A detailed review of mortgage financing by product type shows that financing directed toward residential villas continues to account for the largest share. In September 2025, the value of financing provided for villas reached 3.69 billion riyals, representing 63.1% of the total residential mortgage financing provided by banks. Residential apartments ranked second with a total of 1.83 billion riyals, while the value of financing allocated for the purchase of residential land did not exceed 303 million riyals during the same month.
These figures reflect citizens" continued preference for owning villas over apartments and land, despite a decline in financing compared to the start of the year. Financing for villas reached its highest level in January 2025 at 6.64 billion riyals, before beginning to decline to 3.69 billion riyals in September. Financing for apartments began the year at 3.35 billion riyals in January, then gradually declined to 1.83 billion riyals in September. Land financing followed a similar downward trend, falling from 475 million riyals in January to 303 million riyals in September.
Financing provided by finance companies
The new residential mortgage sector for individuals in Saudi Arabia recorded remarkable growth during September 2025, according to the monthly statistical bulletin issued by the Saudi Central Bank. The total volume of financing provided by finance companies rose to 206 million riyals, compared to 167 million riyals in August, marking a monthly increase of 23.31%.
The new financing was distributed across three main sectors: villas, apartments, and land. All sectors saw an increase in financing volume during September compared to the previous month. The volume of financing allocated for the purchase of villas reached 80 million riyals, up from 68 million riyals in August. As for the apartment sector, financing rose to 100 million riyals, compared to 93 million riyals during the same period. The land sector also recorded exceptional growth, with financing jumping from 7 million riyals in August to 27 million riyals by the end of September.
On a year-over-year basis, new residential mortgage financing for individuals saw a slight increase of 1.91%, rising from 202 million riyals in September 2024 to 206 million riyals during the same period in 2025. Despite this overall increase, some sectors showed a divergence in trend, as financing for villas doubled compared to last year, while the apartment and land sectors saw a notable decline.
Financing in the villa sector rose from 49 million riyals in September of last year to 80 million riyals this year. Meanwhile, financing in the apartment sector declined from 107 million riyals to 100 million riyals, and land financing fell even more sharply, from 45 million riyals in 2024 to 27 million riyals in 2025.
