Thursday 21 January 2021

Saudi home mortgage loans hit $29bn in 10 months

RIYADH, December 1, 2020

Residential new mortgage loans in Saudi Arabia for individuals reached 234,466 contracts with a value of SR109.2 billion ($29 billion), until October 2020, exceeding all mortgages provided by all financing institutions in 2019 and 2018.

Until October 2020, according to the monthly report issued by Saudi Central Bank SAMA, they registered a growth of 73% in the number of loans and 81% in loans compared to the same period of 2019, reported Saudi Press Agency (SPA).

The report emphasised that mortgage loans in October 2020 recorded 25,961 contracts by increase 19%. Residential loans last month worth SR12.5 billion with 35% grow comparing to October 2019 that recorded 21,759 contracts with a value of SR9.3 billion.

SAMA report indicates that 97% of newly mortgages were concluded through banks, while 3% of them through financing companies. The 25,033 housing product loans subsidized by government programs concluded in October 2020, constituted 96% of the total number of contracts with a value of SR 11.9 billion, or about 95% of the value of the funds.

In October, residential villas acquired the largest portion of funding with SR 10.1 billion, or about 81% of the total funding provided by banks and financing companies. Residential apartments came in second with 1.7 billion (14%). Residential lands come in third with 6.5 million (5%).

Real estate mortgage in 2019 jumped three times in a historical performance with 179,217 contracts with value of SR 79,128 billion comparing to that offered in 2018 of 50,496 contracts with a value of SR 29.5 billion, in 2017 about 30,833 contracts with value of SR 21.025 billion, while 2016 was about 22,259 contracts worth SR17.096 billion.



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