Saudi Banks Issue USD 2.37 Billion in Home Loans in February
Mortgage demand grows among Saudis and expats as Riyadh unlocks land and eases restrictions amid housing market shifts.
Saudi banks issued SAR 8.91 billion (USD 2.37 billion) in residential mortgages to individuals in February 2025, according to data released by the Saudi Central Bank (SAMA). The figure represents a 28.3% increase compared to the same month last year, signalling renewed momentum in the Kingdom’s housing market.
Apartments saw the sharpest growth among property types, with lending in this category rising 46.5% year-on-year to SAR 2.9 billion. However, standalone houses continued to dominate overall mortgage volume, accounting for 62.6% of the total — roughly SAR 5.57 billion. Financing for residential land remained comparatively limited at SAR 436 million.
The shift toward apartment ownership comes amid rising property prices in key cities like Riyadh, where demand for more affordable housing options continues to grow. In response, Saudi authorities have taken steps to expand land availability and ease barriers to homeownership.
In March, the Royal Commission for Riyadh City announced the release of 81.5 square kilometres of land in the north of the capital for residential and commercial development. Under the plan, plots will be offered to Saudi citizens aged 25 and above at capped prices, aiming to increase supply and manage affordability.
While the mortgage sector remains primarily geared towards Saudi nationals, ongoing reforms are reshaping the landscape for foreign buyers. Non-Saudis can now purchase property in approved zones such as NEOM and the Red Sea Project, with 99-year lease options available. However, most mortgage activity still flows through domestic initiatives like the Sakani programme, which continues to support citizens in securing home loans.
