Saudi Real Estate Lending Surges as Banks Shift Focus to Corporate Projects
Commercial real estate loans in Saudi Arabia have increased by 15% year-on-year, reflecting a shift in bank lending strategies toward larger projects.
Real estate loans provided by Saudi Arabian commercial banks reached SR922.2 billion ($245.9 billion) during the first quarter of 2025, marking an annual increase of approximately 15%, as per data from the Kingdom's central bank (SAMA).
This growth represents the fastest year-on-year expansion in nearly two years and highlights a robust resurgence in property financing, driven primarily by increased lending to commercial real estate projects.
Although home mortgages still dominate, making up about 75.8% of total outstanding real estate credit at SR698.8 billion with an 11.7% year-on-year increase, corporate real estate loans have grown significantly faster, expanding by nearly 27.5% to reach SR223.4 billion.
This shift in lending focus reflects a broader strategy change among Saudi banks, which have traditionally been largely funded by residential mortgages.
This growth represents the fastest year-on-year expansion in nearly two years and highlights a robust resurgence in property financing, driven primarily by increased lending to commercial real estate projects.
Although home mortgages still dominate, making up about 75.8% of total outstanding real estate credit at SR698.8 billion with an 11.7% year-on-year increase, corporate real estate loans have grown significantly faster, expanding by nearly 27.5% to reach SR223.4 billion.
This shift in lending focus reflects a broader strategy change among Saudi banks, which have traditionally been largely funded by residential mortgages.
