{"id":84531,"date":"2025-10-05T10:27:52","date_gmt":"2025-10-05T07:27:52","guid":{"rendered":"https:\/\/amlak.net.sa\/?p=84531"},"modified":"2025-11-25T17:15:29","modified_gmt":"2025-11-25T17:15:29","slug":"%d8%aa%d8%a3%d8%ab%d9%8a%d8%b1-%d8%a7%d9%84%d8%b3%d9%8a%d8%a7%d8%b3%d8%a7%d8%aa-%d8%a7%d9%84%d8%a7%d9%82%d8%aa%d8%b5%d8%a7%d8%af%d9%8a%d8%a9-%d9%88%d8%a7%d9%84%d9%85%d8%a7%d9%84%d9%8a%d8%a9-%d8%b9","status":"publish","type":"post","link":"https:\/\/amlak.net.sa\/en\/84531\/","title":{"rendered":"The impact of economic and fiscal policies on the Saudi real estate market"},"content":{"rendered":"

The impact of economic and fiscal policies on the Saudi real estate market<\/strong><\/span><\/h4>\n

Architect Dr. Hisham Alqasem<\/strong><\/p>\n

The real estate market in Saudi Arabia is one of the sectors most affected by economic and financial policies, where interest rates, real estate financing, and banking policies play a direct role in supply and demand and the price level.<\/p>\n

Modern indicators<\/strong><\/span><\/h4>\n

According to Saudi Central Bank<\/strong><\/a> (As of the first quarter of 2025, outstanding real estate loans amounted to 922.2 <\/strong>billion rials<\/strong>a year-on-year increase of more than 15%. New home loans granted to individuals from January to April 2025 also recorded around 34.1 <\/strong>\u00a0billion rials<\/strong>an increase of 24% compared to the same period of 2024. CBRE reports that mortgage financing rose in the first quarter of 2025 by 28.3%<\/strong>while the residential real estate price index rose by 5.1%<\/strong>driven by the increase in land and villa prices.<\/p>\n

The role of interest rates and banking policies<\/strong><\/span><\/h4>\n

Higher interest rates increase the cost of borrowing and limit the ability of individuals to obtain new loans, putting pressure on demand. Conversely, low or stable interest rates encourage the expansion of real estate financing. Banks' conditions - such as down payment size and deduction rates - remain a strong determinant of demand.<\/p>\n

Impact of government policies<\/strong><\/span><\/h4>\n

Subsidy programs such as \u00abSakani\u00bb and subsidized financing helped mitigate the impact of high interest rates and increased citizens' appetite for ownership, which explains why loans continue to grow despite economic pressures.<\/p>\n

Challenges<\/strong><\/span><\/h4>\n

Despite growth, the challenge remains in ensuring affordability for the middle classes, especially as prices rise in major cities, and the increasing reliance on loans raises risks in the event of sudden changes in monetary policy or oil prices.<\/p>\n

Recommendations for improving balance<\/strong><\/span><\/h4>\n