‎Residential real estate finance for individuals fall 21% to SAR 120.3 bln in 2022: SAMA

‎Residential real estate finance for individuals fall 21% to SAR 120.3 bln in 2022: SAMA

Residential real estate finance provided for individuals by banks in Saudi Arabia fell by 21% year-on-year (YoY) to SAR 120.3 billion in 2022, data issued by the Saudi Central Bank (SAMA) showed.

This is the first annual decline in new residential real estate financing provided to individuals by banks since the publication of the data.

The following is the volume of financing provided since 2016:

On a monthly basis, new residential real estate finance provided to individuals by banks recorded a YoY decrease during all months of 2022 except for June, which saw an increase of 58%.

Data indicated that the steepest decline in the volume of financing was in December by 50% to reach SAR 6.36 billion, as shown in the following table:

Villa mortgages accounted for 70%, or SAR 83.97 billion, of total housing loans provided in 2022. Apartments and land plots followed with SAR 27.24 billion and SAR 9.07 billion, respectively.

According to SAMA, 154,400 contracts were signed between banks and retail clients in 2022, a decline of 23% YoY.

Financing firms provided new real estate loans worth SAR 3.1 billion in 2022, a decline of 18% YoY.

Monthly, new residential real estate finance provided to individuals by financing firms recorded a YoY decrease in