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The value of new real estate financing provided to individuals by commercial banks in Saudi Arabia amounted to about 43.89 billion riyals during the first eight months of 2026, compared to 59.04 billion riyals during the same period in 2025, a decrease of 25.66%, while the number of financing contracts decreased by 13.07%, amid the decline in the average value of the contract to about 644,000 riyals.
The data indicate that the decline in the value of financing was greater than the decline in the number of contracts, in conjunction with the contracting average funding granted to individuals to buy residential properties.
The value of new real estate financing for individuals provided by commercial banks (one billion riyals)
January 10.46 6.19 -40.82
February 8.91 5.37 -39.73
March 8.4 4.19 -50.12
April 6.3 6.33 0.48
May 7.38 4.37 -40.79
June 5.32 5.7 7.14
July 6.42 5.87 -8.57
August 5.86 5.87 0.17
Total 59.04 43.89 -25.66
Source: Saudi Central Bank
Real estate financing declines 25.7%
The data showed that commercial banks provided new real estate financing to individuals worth SAR 43.89 billion during the period from January to August 2026, a decrease of SAR 15.15 billion compared to the same period of the previous year.
March recorded the largest annual decline in the value of financing by 50.12% to reach SAR 4.19 billion compared to SAR 8.40 billion in March 2025, followed by January with a decrease of 40.82%, and May with 40.79%.
In contrast, June recorded an annual growth of 7.14% to SAR 5.70 billion, and funding rose slightly in April and August by 0.48% and 0.17%, respectively.
The new financing in August amounted to about 5.87 billion riyals, compared to 5.86 billion riyals in the same month last year, indicating the stability of its value almost on an annual basis.
Number of new real estate financing contracts for individuals provided by commercial banks
January 13,411 9,005 -32.85%
February 11,757 8,353 -28.95%
March 11,112 6,398 -42.42%
April 8,204 9,579 16.76%
May 9,961 6,545 -34.29%
June 7,404 8,834 19.31%
July 8,575 9,620 12.19%
August 7,962 9,807 23.17%
Total 78,386 68,141 -13.07%
Source: Saudi Central Bank
68 thousand new real estate financing contracts
In terms of the number of contracts, the total number of new mortgage contracts for individuals reached 68,141 contracts during the first eight months of 2026, compared to 78,386 contracts during the same period in 2025, a decrease of 13.07%, equivalent to 10,245 contracts.
March recorded the largest annual decline in the number of contracts by 42.42% to 6,398 contracts, while the number decreased in January by 32.85%, and during May by 34.29%.
However, the data showed the number of contracts grew over the last four months, excluding May; the number increased in June by 19.31%, in July by 12.19%, and then August by 23.17%.
August recorded the highest monthly number of contracts since the beginning of the year, with 9,807 contracts, compared to 7,962 contracts in August 2025, reflecting the increase in the number of new funding operations despite the almost stable total value.
Average value of financing contracts for the purchase of new residential properties for individuals
January 780,234 687,285 -11.91%
Feb 757,638 643,003 -15.13%
March 755,821 654,423 -13.42%
April 767,584 660,403 -13.96%
May 740,530 668,144 -9.77%
June 718,254 645,461 -10.13%
July 748,276 610,499 -18.41%
August 736,055 598,042 -18.75%
Average 753,177 644,047 -14.49%
Source: Saudi Central Bank
Average funding drops to 644 thousand riyals
The average value of financing contracts for the purchase of new residential properties for individuals showed an average decline to 644,047 riyals during the first eight months of 2026, compared to 753,177 riyals during the same period of 2025, a decline of 14.49%, equivalent to about 109,000 riyals per contract.
The contract averaged a year-on-year decline in all months of the period, ranging from 9.77% in May to 18.75% in August.
During August, the average contract value was SAR 598,042, compared to SAR 736,055 in the same month of the previous year, a decrease of 18.75%, the lowest monthly average since the beginning of 2026.
The average also fell from 687,285 riyals in January to 598,042 riyals in August, a decrease of nearly 89,000 riyals in seven months.
More contracts with lower financing values
The comparison of August data reveals a change in the average volume of new mortgage financing; the number of contracts increased by 23.17%, while its total value increased by a limited 0.17%, in conjunction with the decrease in the average value of the contract by 18.75%.
This means that banks financed more contracts in August, but with an average value lower per contract than the same month last year.
These indicators highlight the importance of distinguishing between the size of real estate financing and the number of beneficiaries; increasing the number of contracts does not necessarily mean that the total financing at the same value increases.
The decrease in the average value of financing does not necessarily represent a similar decline in housing prices, given that the value of the loan is affected by other factors, including the value of the financed property, the percentage of the down payment and the financing capacity of borrowers.
The outcome of the first eight months of 2026 indicates a continued decline in new real estate financing compared to 2025, despite the improvement in the number of contracts in recent months, which reflects the different number of contracts from the total amounts provided by banks to finance the purchase of housing.
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