Prime Highlights:
- Saudi Arabia’s mortgage financing has crossed SR900 billion ($240 billion) in 2025, marking a major milestone in the Kingdom’s housing market.
- Vision 2030 reforms, along with digital innovation and new investment models, are driving the country’s real estate transformation and homeownership growth.
Key Facts:
- Real estate loans now make up 27% of Saudi banks’ portfolios, supported by sukuk issuances through the Saudi Real Estate Refinance Co.
- The National Housing Co. and the Wafi program have enabled over 100 national developers to deliver large-scale housing projects across the Kingdom.
Key Background:
Saudi Arabia’s real estate sector has hit a major milestone, with mortgage financing surpassing SR900 billion ($240 billion) in 2025, said Majid Al-Hogail, Minister of Municipal and Rural Affairs and Housing. The record growth reflects the Kingdom’s fast progress in transforming its real estate market under Vision 2030.
Speaking at the third Qatar Real Estate Forum in Doha, where Saudi Arabia was the guest of honor, Al-Hogail said the sector’s strong performance is driven by new regulations, digital tools, and modern investment models that are reshaping the housing and property landscape. He noted that the surge in mortgage lending reflects the success of national housing policies that aim to raise the homeownership rate among Saudi citizens to 70 percent.
Al-Hogail noted that housing finance now plays a key role in driving steady growth in the real estate sector. He explained that the total value of financing has risen sharply, from about SR200 billion to over SR900 billion in recent years. He also revealed that real estate loans now account for 27 percent of Saudi banks’ portfolios, supported by the Saudi Real Estate Refinance Co., which has issued sukuk on the London Stock Exchange to deepen capital market integration.
The minister emphasized that Saudi Arabia has built a comprehensive real estate ecosystem connecting landowners, developers, service providers, and facility managers into a unified framework. He pointed to the National Housing Co., established in 2016, and the “Wafi” program for off-plan sales as key enablers for large-scale development projects by over 100 national developers.
Al-Hogail also announced a new agreement with Qatar’s Diyar Co. to expand operations in Saudi Arabia, signaling a growing wave of Gulf cooperation in the real estate field. He further highlighted the “Saudi Architecture” initiative, launched by the Crown Prince, which celebrates 19 distinct regional architectural identities as part of building a national design vision.
Saudi cities are also making global strides in digitalization, with six ranked among the world’s top 100 smart cities, according to the IMD Index, a reflection of the Kingdom’s growing innovation and real estate modernization.
