Housing finance for individuals in Saudi Arabia surged by 15% in the first half of 2025, reaching $12.8 billion (SAR48 billion), compared to $11.1 billion (SAR41.74 billion) in the same period last year, according to data from the Saudi Central Bank (SAMA).
Experts attribute the increase to a mix of government incentives, competitive financing offers, stable interest rates, and rising rents in major cities, which have boosted demand for home ownership.
Real estate consultant Matar Al-Shammari told Asharq Al-Awsat that the growth is largely driven by initiatives from the Ministry of Housing, the Real Estate Development Fund, and the “Sakani” program, along with stable mortgage rates and diverse housing products.
He noted that off-plan construction projects have seen particular interest, supported by competitive bank offers, fee exemptions, and a concentration of demand in cities like Riyadh, the Eastern Province, and the Western Region, which benefit from strong job markets, educational opportunities, and rapid economic growth. The entry of international developers into the Saudi market is also reinforcing its investment appeal.
For his part, property valuer and expert Eng. Ahmed Al-Faqih cited two main factors behind the surge. First, historically low mortgage rates, coupled with both new and pent-up demand, have logically boosted borrowing. Second, soaring rents in major urban centers have made buying more financially attractive than remaining a tenant.
Al-Faqih highlighted that government housing programs - particularly those by the National Housing Company - have focused on off-plan sales, offering preferential rates that make them more appealing than ready-built properties, thereby increasing the uptake of supported housing projects.
Real estate consultant Al-Oboudi bin Abdullah added that the rise in housing finance reflects sustained demand for residential projects in major cities, fueled by government incentives and attractive bank mortgage offers. He pointed to SAMA’s figures showing that over 97% of housing finance for individuals came from banks, with villas being the most financed property type (SAR29.6 billion), followed by apartments (SAR14.5 billion) and land plots (SAR2.65 billion).
These figures, he said, underline the continued strength and capacity of the Saudi housing market to absorb new projects, supported by strong buyer confidence. Looking ahead, he believes ongoing housing support programs, stable interest rates, and the imminent implementation of updated regulations allowing non-Saudis to own property will further stimulate the real estate sector in the second half of 2025.
