Rising financing costs shift Saudi homeownership trends toward apartments
Saudis increasingly opt for apartments and transitional housing over traditional villas, as higher financing costs and price gaps reshape homeownership culture.
The culture of homeownership in Saudi Arabia is evolving as higher financing costs and price gaps between villas and apartments reshape the market. Real estate expert Matar Al-Shammari observed this shift for Al-Ekhbariya TV, noting that many now prefer apartments and transitional housing over traditional villas. This change is driven by fluctuating interest rates, varying financial capabilities, and the widening price discrepancy between property types.
Financing for apartment purchases has surged to 169.5 billion riyals, marking a fivefold increase over the past eight years, according to recent data. This rise in apartment financing is attributed to a diversification of financial products offered by banks and mortgage companies to cater to different family needs, reflecting a broader transformation in Saudi Arabia's homeownership landscape.
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