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New real estate financing for individuals to buy residential properties in Saudi Arabia decreased by 24% during the first nine months of 2026, reaching SAR 49.42 billion, compared to SAR 64.86 billion during the same period in 2025, a decrease of SAR 15.44 billion.
In contrast, the third-quarter data revealed a remarkable shift, which was the increase in the number of new financing contracts despite the continued decline in their total value, in conjunction with the decline in the average value of the contract.
Total value of new funds for individuals to buy a residential property (one billion riyals)
First Quarter 27.77 15.75 -43.28%
Second Quarter 18.99 16.4 -13.64%
Third Quarter 18.1 17.27 -4.59%
Total 64.86 49.42 -23.81%
Source: Saudi Central Bank
Funding declines from 43% to 5% in three-quarters
The first quarter of 2026 recorded the largest annual decline in the value of new real estate financing by 43%, reaching 15.75 billion riyals compared to 27.77 billion riyals in the corresponding period of 2025. The decline fell to 14% in the second quarter, recording 16.40 billion riyals compared to 18.99 billion riyals, before slowing to 5% in the third quarter, in which financing amounted to 17.27 billion riyals compared to 18.10 billion riyals, in a sign of a gradual improvement in the value of new financing compared to similar periods of the previous year.
Total number of new financing contracts for individuals to buy a residential property
First Quarter 36,280 23,756 -34.52%
Second Quarter 25,569 24,958 -2.39%
Third Quarter 24,535 29,111 18.65%
Total 86,384 77,825 -9.91%
Source: Saudi Central Bank
Financing contracts rise 19% in the third quarter to 29.1 thousand contracts
The total number of new mortgage contracts decreased by 10% during the first nine months of 2026, to 77,825 contracts compared to 86,384 contracts during the corresponding period of 2025. However, the third quarter recorded an annual increase of 19% to 29,111 contracts, compared to 24,535 contracts a year ago, after a decrease of 35% in the first quarter and 2% in the second quarter, reflecting the return of growth in the number of new contracts despite the continued decline in their total value.
Average value of financing contracts for individuals to buy a residential property
First Quarter 765,434.124 662,864.119 -13.4%
Second Quarter 742,759.967 657,144.002 -11.53%
Third Quarter 737,613.746 593,143.485-19.59%
Total 750,821.134 634,950.209 -15.43%
Source: Saudi Central Bank
Average mortgage finance drops 20% to SAR 593 thousand
The average value of the new mortgage contract decreased by 15% during the first nine months of 2026; to reach 634,950 riyals compared to 750,821 riyals during the corresponding period of 2025. The third quarter recorded the largest annual decline on average by 20%, reaching SAR 593,143 compared to SAR 737,614, compared to a decrease of 13% in the first quarter and 12% in the second quarter, which explains the increase in the number of contracts in the third quarter despite the decline in the total value of financing.
New financing for individuals to buy residential villas (one billion riyals)
First Quarter 17.4 10.12 -41.84%
Second Quarter 12.18 10.58 -13.14%
Third Quarter 11.55 11.17 -3.29%
Total 41.12 31.87 -22.5%
Source: Saudi Central Bank
Financing residential villas falls 22% to 31.87 billion riyals
Residential villas accounted for about 64.5% of the total value of new real estate financing for individuals during the first nine months of 2026, with a value of SAR 31.87 billion, compared to SAR 41.12 billion during the corresponding period of 2025, a decrease of 22%. Villa financing fell by 42% in the first quarter and 13% in the second quarter, before the pace of decline narrowed to 3% in the third quarter, which recorded financing of 11.17 billion riyals compared to 11.55 billion riyals a year ago.
New financing for individuals to buy apartments (one billion riyals)
First Quarter 9.05 4.61 -49.06%
Second Quarter 5.49 4.79 -12.75%
Third Quarter 5.52 5.23 -5.25%
Total 20.06 14.63 -27.07%
Source: Saudi Central Bank
Financing apartments drops 27% to 14.63 billion riyals
The value of new financing allocated for the purchase of apartments amounted to 14.63 billion riyals during the first nine months of 2026, compared to about 20.06 billion riyals during the same period of 2025, a decrease of 27%. The first quarter recorded the largest decline of 49%, before the decline slowed to 13% in the second quarter and 5% in the third quarter, in which financing amounted to 5.23 billion riyals compared to 5.52 billion riyals a year ago.
New financing for individuals to buy residential land (one billion riyals)
First Quarter 1.33 1.02 -23.31%
Second Quarter 1.32 1.03 -21.97%
Third Quarter 1.03 0.87 -15.53%
Total 3,676,252 2,919 -20.6%
Source: Saudi Central Bank
Housing land financing declines 21% to SAR 2.92 billion
The value of new real estate financing for individuals to buy residential land decreased by 21% during the first nine months of 2026, reaching about 2.92 billion riyals, compared to about 3.68 billion riyals during the corresponding period of 2025. Funding fell by 23% in the first quarter, 22% in the second quarter and 16% in the third quarter, which recorded financing of 870 million riyals compared to 1.03 billion riyals a year ago.
The growth in the number of contracts reflects a shift in funding volumes
Residential mortgage data reveals a shift in market direction during 2026, as the annual decline in the value of financing gradually declined, coinciding with the return of the number of contracts to growth in the third quarter.
The decline in the average value of the contract is highlighted as one of the most important features of this shift, as the number of new contracts has increased without a similar increase in total financing, indicating the trend of financing towards relatively smaller amounts, without posing a direct evidence of the decline in residential real estate prices, in light of the different types of funded properties and their values and the funding ratios granted.
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