‎“SAMA”: 16K new housing contracts for individuals during ‎August, for SR 12.9 bln

The monthly bulletin issued by the Saudi Central Bank “SAMA” revealed a new growth in residential real estate financing for individuals – provided by real estate financiers from banks and finance companies – during the month of August, reaching 12.9 billion riyals, recording a growth rate of more than 56%. Compared to last July, which recorded a financing volume of 7.3 billion riyals, where 16,573 new housing finance contracts were registered, a growth rate of more than 55% compared to last July, which recorded 9,239 contracts.

According to the bulletin, the value of housing finance provided to individuals for the purchase of villas amounted to 8.7 billion riyals, representing 67% of the total volume of financing, while the value of financing for the purchase of residential apartments amounted to 3.7 billion, or 29%, and real estate financing for the purchase of residential lands recorded SR 489 million at 4%, and the Saudi Central Bank report can be viewed via the link https://www.sama.gov.sa/ar-sa/EconomicReports/Pages/MonthlyStatistics.aspx.

It is noteworthy that the total financing provided by banks and finance companies during the past year 2021 amounted to 206 thousand contracts, with a value of more than 156.3 billion riyals, while the year 2020 recorded a record growth equal to the total amount provided during the previous 4 years in the number of contracts, exceeding 295,590 contracts. With a value of 140.7 billion riyals, and during 2019, real estate financing reached historical rates that exceeded 3.5 times what was provided in 2018, with about 179,217 contracts worth 79.1 billion riyals, while the financing loans at the end of 2018 amounted to about 50,496 contracts, worth 29, 5 billion riyals, and in 2017, it amounted to about 30,833 contracts worth 21 billion, and the year 2016 witnessed the signing of 22,259 financing contracts worth 17 billion riyals.