A decade ago, purchasing a home in Saudi Arabia required navigating a limited mortgage market with conservative lending terms. Today, that landscape has been fundamentally reimagined.
The Real Estate Development Fund (REDF) offers subsidised mortgages for Saudi nationals at near-zero interest, covering properties up to SAR 1.5 million. Through partnerships with 17 banks and financing companies, the REDF has helped over 320,000 families buy their first home since 2017.
For the private market, Islamic financing products including Murabaha and Ijarah have become more competitive, with major banks now offering 25–30 year terms and financing of up to 90% of property value.
"The mortgage market transformation is the single most important driver of Saudi real estate demand," said a Riyadh-based property consultant. "Young Saudis who expected to rent for life can now buy. That is a cultural shift as much as a financial one."
