RIYADH: According to official figures, Saudi Arabian banks gave out SR8.91 billion ($2.37 billion) in new home mortgages to people in February, representing a 28.33% yearly increase. According to data from the Saudi Central Bank, or SAMA, flat lending grew fastest during this time, increasing by 46.45% to SR2.9 billion.
As demand increasingly turns towards apartments, the share of residential real estate financing that is dominated by houses, at 62.6 percent, has decreased from 65.24 percent in February 2024. This momentum coincides with Saudi Arabia’s efforts to reach its Vision 2030 goal of 70% home ownership.
Citizens and an increasing number of expatriates are driving demand. According to March Knight Frank research, 72 percent of Saudis and foreigners want to purchase a home. Among high-income citizens who make more than SR50,000 a month, the percentage jumps to 93 percent. Seventy-seven percent of foreigners would like to purchase real estate in the Kingdom.
According to Knight Frank, affordability is still a problem despite the high demand, especially in places like Riyadh, where villa and apartment prices have increased by 40% and 75% since 2019, respectively.
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