Real estate financing for individuals decreased by 11.7% in the third quarter of 2025

2 hours ago

Less than a minute

Real estate financing for individuals decreased by 11.7% in the third quarter of 2025

New residential real estate financing record for individuals from Commercialbanks in the third quarter of 2025, an annual decline of 11.7%, and a quarterly decline of 4.7%.

According to the performance report of Finance"Villas" By 4.2% annually, which indicates a high sensitivity of demand to the cost of lending and buyers’ orientation towards more financially suitable options.

Sale deals witnessed a mixed performance between sectors during the third quarter of 2025. Activity in the residential market recovered quarterly by 12.9%, despite its annual performance remaining under pressure.

Commercial Sector

As for the commercial market, it witnessed an increase in the number of deals with a significant decline in their value quarterly by about 49.6%.

According to the report, this indicates that investors are focusing on smaller, more liquid deals.

The agricultural sector

The agricultural sector continued its sharp annual decline in both number and value, which reflects the decline in investment demand in it.

This discrepancy shows the market gradually moving towards a new equilibrium stage led by price and geographical factors more than rapid liquidity.

Licenses and contracts. Brokerage

The issuance of licenses and intermediary activities witnessed a remarkable quarterly recovery, and the number of licenses issued increased by 19.8%, and brokerage contracts reached 135,983 contracts, an increase of 23.7%.

However, the numbers are still below their record levels recorded a year ago, which reflects the stage of market adaptation to new legislation.

The data shows a strong concentration of activity in the major urban centers of Riyadh. And Mecca and the East; (acquires more than 85% of licenses).

Marketing and sales activities lead the vast majority of contracts, which confirms that the market need is still focused on monetizing assets and not managing or developing them.

Real Estate Loans

The existing real estate loans from commercial banks and finance companies together have a strong and growing financing base, as their total value exceeded 966.8 million riyals in the third quarter of 2025.

Individual loans constitute the majority The portfolio of each bank accounted for 77.4% and finance companies accounted for 79.9%, while the bank financing model remains the largest and fastest expanding, recording an annual growth of 10.8% compared to 3.1% for finance companies.

Real Estate Lease

Real estate lease deals witnessed clear price pressures despite the high volume of transactions. The number of residential rental deals increased quarterly, but their total value decreased by 21.2.

The decline was more severe in commercial rents, and the value fell by 53.6% on an annual basis to 6.97 billion riyals.

This general trend reflects the decline in average rental values and the market’s trend towards less expensive contracts, driven by purchasing power pressures and the impact of regulatory decisions aimed at achieving a balance between the rights of landlords and tenants.