Saudi mortgages jump in February bucking global property trepidation

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DUBAI : Residential mortgages in Saudi Arabia increased by almost a third in February from a year earlier, according to new data from the Saudi Central Bank (SAMA).

Around 26,800 new housing contracts were recorded in February 2021 – 28 percent more than February 2020 – reaching a value of more than SR14 billion ($3.7 billion).

Banks arranged 97 percent of these mortgage contracts, while the rest were handled by financing companies, SAMA said.

Residential villas accounted for nearly 80 percent of the new contracts, valued at around SR11.3 billion. Apartments came second at 16 percent, and land purchases stood at 4 percent.

The COVID-19 pandemic has put pressure on the global housing market, as people delay big purchases because of worries about job security and financial stability

Still, pent up demand for new housing in the Kingdom is keeping the mortgage market buoyant.

The data showed contracts from January to February reached 59,671 with a value of SR30.5 billion – representing growth of 20 percent compared to last year’s figures.

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