Saudi Arabia: Residential Mortgage Loans Reach $29 Billion

Saudi Arabia: Residential Mortgage Loans Reach $29 Billion

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