Real estate loans to retail customers up 7.3% in Q3: Saudi Central Bank
The value of residential mortgage financing provided by banks to Saudi individuals fell
Image used for illustrative purpose.
By Ruba AlrashedRinat Gainullin, Arab News
Real estate loans made to Saudi individuals increased by 7.2 percent to hit SR412.6 billion ($110 billion) in the third quarter of this year, data from the Saudi Central Bank showed.
Saudi banks lent SR533.4 billion in real estate loans to both retail and corporate customers in Q3, while finance companies lent a much lower SR25.4 billion.
The value of residential mortgage financing provided by banks to Saudi individuals fell to SR11.8 billion in October, down from both the previous month and the same period in 2020.
The number of contracts for these deals, however, increased to 23,899 contracts in October, SAMA data revealed. This reflected a 3.4 percent uptick from September’s level.
On the other hand, total contracts for residential mortgages were numbered at a higher 25,483 in October 2020. Their value was SR12.1 billion.
In particular, new residential mortgages for houses amounted to SR9.1 billion in October. Meanwhile, new bank loans used to finance the purchases of apartments by individuals were valued at SR2.3 billion in the same month.
These mortgages are used by individuals to finance the purchases of houses and apartments.
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