Saudi mortgage lending picks up in July 2021

RIYADH: More Saudis have taken out new mortgages in July after a short slump in June, however, the total banks lending to the real estate sector is still higher in the first six months of this year compared to last year as the effects of the pandemic have eased, official data showed.

Saudi new residential real estate financing contracts reached over 18,000 worth SR8.4 billion for individuals in July, up from a month ago but down from the same month last year, Saudi central bank (SAMA) data showed. It's half of the value recorded at the beginning of this year.

The slow down in the summer months of this year for new mortgage did not affect the overall growth this year, with total real estate loans to corporate and individuals in Q2, up by 40 percent from a year ago, settling at SR503 billion. One reason for this is the focus of banks on lending more at home after they cut on the amount of money they had in assets abroad, the data showed.

Khaled Al-Mobayed CEO of Menassat Reality Co., a Riyadh-based real estate developer, told Arab News that the reason for the growth in mortgage lending is due to growing demand for