The residential mortgage market in Saudi Arabia witnessed a noticeable decline during February 2026, as the volume of new financing provided by banks to individuals dropped to SAR 5.37 billion, representing a 40% decrease compared to the same period in 2025.
According to the Saudi Central Bank, approximately 8.4 thousand contracts were signed between banks and individuals in February 2026, reflecting reduced activity in the sector compared to the previous year. The average value of individual mortgage financing also saw a significant decline, settling at SAR 643 thousand, down 15% from February 2025.
In terms of financing distribution, residential villas accounted for the largest share of total bank financing, reaching SAR 3.425 billion, equivalent to 64% of the total. Apartments followed with financing amounting to SAR 1.616 billion, while financing provided for land purchases did not exceed SAR 330 million.
On the other hand, new residential mortgage financing provided by private finance companies to individuals recorded a 22% increase during the same month, reaching approximately SAR 241 million. This notable growth indicates that finance companies are beginning to play an increasingly important role in supporting the Kingdom’s residential real estate market.
These figures reflect ongoing changes in the behavior of the Saudi real estate market, influenced by multiple economic factors, and open the door for deeper analysis to better understand the shifts affecting individuals’ choices and their future financing decisions.
