According to a recent announcement, implementing a new property initiative in Saudi Arabia resulted in transactions in the real estate market worth approximately SR1.2 trillion (USD 319.8 billion) between July 2023 and July 2025.
Following the second “Real Estate Brokerage Forum 2025,” which occurred at the Riyadh International Convention and Exhibition Centre, the General Real Estate Authority (GESA) disclosed the figure, according to the Saudi Press Agency.
The Kingdom’s ambitious economic diversification agenda, “Vision 2030,” is revolutionising the real estate market in Saudi Arabia by increasing homeownership from roughly 63.7% in 2023 to 70% by 2030. By increasing bank participation, the plan aims to double mortgage activity, diversify financing, and increase mortgage lending.
In his keynote address, Tayseer Al-Mufarrej, the authority’s general director of strategic communication and official spokesperson, emphasised the system’s impact, stating that it has resulted in over eight million real estate transactions, the licensing of over 86,000 brokers, and the approval of 75 digital platforms that house over 685,000 authorised listings.
The “Real Estate Brokerage Law,” which was introduced in 2022 and aims to professionalise real estate transactions through standardised contracts, broker licensing, and stricter oversight to increase transparency and protect consumers, is what is driving the change.
“Al-Mufarrej noted that the system had brought about a fundamental transformation in the structure of the sector by turning brokerage into a licensed profession governed by regulations and defined responsibilities and obligations,” the Saudi Press Agency reported further.
In its first year, transactions increased by 17%, reaching SR605 billion in deals. Tens of thousands of individual and corporate brokers, as well as digital platforms, were licensed as a result. Real estate loans by Saudi Arabia’s commercial banks, on the other hand, climbed to a record SR922.2 billion (USD 245.9 billion) in the first quarter of 2025, marking an annual increase of just over 15%. Based on data from the Kingdom’s central bank, also known as SAMA, this expansion has been the fastest year-on-year growth in nearly two years, and underscores a robust resurgence in property financing.
There was a surge in lending to commercial real estate projects even as home mortgages, which still form the lion’s share, grew at a more moderate pace. Saudi banks’ retail mortgages, which are primarily home loans to individuals, accounted for about 75.8% of total outstanding real estate credit in the first quarter, reaching SR698.8 billion.
This represents an 11.7% year-on-year rise. Corporate real estate loans (the funding provided to developers and commercial ventures) grew nearly 27.5% over the same period to SR223.4 billion, outpacing the retail segment’s growth several times over.
Although smaller in absolute terms, the corporate real estate portfolio has been expanding at its fastest pace in almost a decade, according to SAMA data, boosting its share of total real estate credit to roughly 24%, while signalling a significant shift in banks’ lending focus.