The mortgage sector in the Kingdom is witnessing accelerated growth through 2025, driven by the expansion of housing finance programs and growing consumer confidence in the Saudi real estate market.
In recent years, the demand for mortgages has increased despite the forgotten rise in housing prices, as a result of banking facilities and lower financing costs. In recent years, the demand for mortgage has increased despite the relative rise in housing prices due to banking facilities and lower financing costs. The Ministry of Municipal Affairs and Housing has launched new programs to finance the purchase of housing units through 2025, including the “Masaer” program, which aims to enable Saudi families to own their homes more easily, by providing financing up to 800 thousand riyals with a low down payment.
Ministry of Municipal Affairs and Housing
Mortgage Loans Increase
The total real estate loans provided to individuals and companies rose to about SAR 922 billion during the first quarter of 2025, an increase of about 15% compared to the same period of the previous year, according to data Saudi Central Bank (SAMA), which showed that individual loans accounted for the largest share of real estate loans worth SAR 697 billion, compared to SAR 223 billion for corporate loans.
In January of this year, Saudi banks recorded new real estate loans worth 10.5 billion riyals, an annual increase of more than 39%, with an average loan of 780,000 riyals.
Saudi banks recorded new real estate loans worth 10.5 billion riyals, an annual increase of more than 39%.
New financing programs and incentives to support ownership
The homeownership rate among citizens rose to 63.7% by the end of 2023, with the government continuing to work to reach 70% in the next five years, as revealed by Jadwa Investment's February 2025 report.
The value of housing has risen to #800000; New financing programs and incentives to support homeownership. <The value of residential transactions in the Kingdom rose to SAR 118 billion, up more than 50% year-on-year, with a growing appetite for integrated residential projects and major real estate brands, according to Deloitte Middle East.
