New mortgages loans exceeds that offered in last two years: Saudi SAMA

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.

The report emphasized that mortgage loans in October 2020 recorded 25,961 contracts an increase of 19%. Residential loans last month worth SR12.5 billion with 35% growth compared to October 2019 that recorded 21,759 contracts with a value of SR9.3 billion.

The SAMA report indicates that 97% of new 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 SR11.9 billion, or about 95% of the value of the funds.

In October, residential villas acquired the largest portion of funding with SR10.1 billion, or about 81% of the total funding provided by banks and financing companies. Residential apartments came in second with SR1.7 billion (14%). Residential lands come in third with SR6.5 million (5%).

Real estate mortgage in 2019 jumped 3 times in a historical performance with 179,217 contracts with value of SR79,128 billion compared to that offered in 2018 of 50,496 contracts with a value of SR29.5 billion, in 2017 about 30,833 contracts with value of SR21,025 billion, in 2016 with 22,259 contracts worth SR17,096 billion. — SG