More than 17000 New Residential Mortgages with 11% Growth in May 2021 Issued, SAMA Announces

Riyadh, July 01, 2021, SPA -- Saudi Arabian banks and financial institutions issued 17,460 new residential real estate mortgages contracts for individuals in May 2021, a growth of 11% compared to May 2020 when 15,730 contracts worth SR7.9 billion were recorded. On the other hand, the real estate financing grew in May 2021 to more than nine billion Saudi Riyal at a rate of 14%, according to the Saudi Central Bank "SAMA" monthly report issued here today. SAMA report pointed out that the mortgages contracts for new residential real estate for individuals since the beginning of the year until May 2021 amounted to 135,302 contracts, a growth of 27%. The value of finance surpassed SR71.4 billion until May 2021 while the rate of growth of real estate finance amounted to 48% compared to the same period last year 2020 when 107033 contracts were recorded in the amount of SR48.2 billion. The report showed that more than 98% of new mortgages contracts were issued through banks, while 2% of them were struck through finance companies in May 2021. The real estate financing for residential villas amounted to SR7.3 billion, a rate of 80% out of the total finance of the funds provided by banks; SR1.4 billion allocated for residential apartments, a rate of 16%,, and residential land purchases amounted to SR415 million, a rate of four percent. Mortgage in 2020 achieved a record growth in terms of number of contracts concluded as more than 295,590 contracts in the value of SR 140.7 billion, were struck. In 2019, mortgage financing jumped to 179,217 contracts worth SR79.1 billion, an historical performance of more than 3.5 folds compared to 2018. By the end of 2018, finance loans amounted to 50,496 worth SR29.5 billion. In 2017, nearly 30,833 contracts valued SR21 billion were reached, while in 2016 as many as 22,259 loan contracts worth SR17 billion concluded. -- SPA