Residential real estate financing from banks declines to SAR 16.4 billion in the second quarter of 2026 Bank Residential Mortgage Financing Declines to SAR 16.4 Billion in Q2 2026

Central Bank of Saudi Arabia data showed a decline in new residential real estate financing provided by banks during the second quarter of 2026, and the total financing amounted to about 16.401 billion riyals, a decrease of 5.5% on an annual basis. Financing recorded an improvement of 4.1% compared to the first quarter of 2026, which amounted to 15.747 billion riyals. Financing also increased by 5.4% compared to the fourth quarter of 2025, at 15.560 billion riyals.

Data from the Saudi Central Bank showed that new residential mortgage financing provided by banks declined during the second quarter of 2026, with total financing reaching approximately SAR 16.401 billion, down 5.5% year-on-year. Financing improved by 4.1% compared with the first quarter of 2026, when it stood at SAR 15.747 billion, and increased by 5.4% compared with the fourth quarter of 2025, when it amounted to SAR 15.560 billion.

Villa financing accounted for the largest share with a value of 10.582 billion riyals during the second quarter, apartment financing came second with a value of 4.747 billion riyals, then land financing with about 1.032 billion riyals, and on an annual basis, villa financing declined from 12.181 billion to 10.582 billion riyals, apartment financing also decreased from 5.491 billion to 4.747 billion riyals, and land financing declined annually from 1.320 billion to 10.582 billion riyals. 1.032 billion riyals.

Villa financing accounted for the largest share at SAR 10.582 billion during the second quarter, followed by apartment financing at SAR 4.747 billion, and land financing at approximately SAR 1.032 billion. Year-on-year, villa financing declined from SAR 12.181 billion to SAR 10.582 billion, while apartment financing fell from SAR 5.491 billion to SAR 4.747 billion, and land financing decreased from SAR 1.320 billion to SAR 1.032 billion.

On a quarterly basis, financing for villas increased from 10.118 billion to 10.582 billion riyals, financing for apartments increased from 4.608 billion to 4.747 billion riyals, and land from 1.021 billion to 1.032 billion riyals. The data indicates a gradual improvement in residential lending activity during 2026 despite the continued decline on an annual basis.

On a quarterly basis, villa financing increased from SAR 10.118 billion to SAR 10.582 billion, while apartment financing rose from SAR 4.608 billion to SAR 4.747 billion, and land financing increased from SAR 1.021 billion to SAR 1.032 billion. The data indicates a gradual improvement in residential lending activity during 2026 despite the continued year-on-year decline.