# Saudi Residential Mortgage Financing Reaches SR604 Million in Q3 2026 New mortgage data from Saudi Central Bank shows annual growth despite quarterly declines. - **Source:** [Saudi Gazette](https://saudigazette.com.sa) - **Published:** 2026-11-08 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/c0b6748a-4b18-498c-ad41-6f77313299d1 ## Annual Growth in Financing New residential mortgage financing provided by finance companies to individuals in Saudi Arabia reached SR604 million during the third quarter of 2026. This figure represents an 8 percent increase compared to the same period in 2025, when financing stood at SR559 million, according to the latest monthly statistical report from SAMA. ## Quarterly Performance Comparison Despite the year-on-year growth, the total volume of new residential mortgage financing experienced a 15 percent decline compared to the second quarter of 2026. Financing dropped from SR711 million in Q2 2026 to SR604 million in Q3 2026, reflecting significant fluctuations in the quarterly lending activity within the kingdom's mortgage market. ## Sectoral Breakdown of Loans The financing data is categorized into three primary sectors: villas, apartments, and land. In Q3 2026, apartment financing led the market at SR310 million, while villa financing stood at SR210 million. Financing for land acquisitions reached SR84 million, showing varied performance across these distinct real estate segments during the third quarter period. ## Apartment Sector Performance Financing for apartments demonstrated resilience, increasing to SR310 million in Q3 2026 from SR295 million in Q3 2025. However, this sector also faced a quarterly contraction, falling from SR332 million in Q2 2026. These figures highlight the shifting preferences and availability of credit for apartment buyers within the Saudi residential property market. ## Villa Financing Trends The villa sector saw financing reach SR210 million in Q3 2026, remaining relatively stable compared to the SR211 million recorded in Q3 2025. Conversely, the sector experienced a notable decline from the SR269 million reported in the second quarter of 2026, indicating a cooling trend for villa-related mortgage activity during this specific timeframe. ## Land Financing Dynamics Financing for land acquisitions showed the most significant annual growth, rising to SR84 million in Q3 2026 from SR53 million in Q3 2025. Despite this annual gain, land financing also dropped on a quarterly basis, falling from SR111 million in Q2 2026, reflecting broader volatility in the land development and acquisition financing sector. ## Year-to-Date Comparison When compared to the first quarter of 2026, total residential mortgage financing grew by 3.2 percent, rising from SR585 million to SR604 million. While apartment and land financing saw increases over this nine-month period, villa financing decreased from SR249 million in Q1 2026 to SR210 million by the end of the third quarter. ## Market Context and Outlook The data provided by the Saudi Central Bank illustrates the complex nature of mortgage lending through finance companies. By tracking these quarterly shifts across villas, apartments, and land, stakeholders can better understand the evolving credit landscape in Saudi Arabia, which remains sensitive to both seasonal demand and broader economic conditions in 2026. ## Sources covering this story - https://saudigazette.com.sa/article/666084/saudi-arabia/residential-mortgage-financing-for-individuals-in-saudi-arabia-rises-8-to-sr604-million-in-q3-2026 — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._