Number of new mortgage contracts grow to 254%: Saudi SAMA

RIYADH — The monthly report issued by Saudi Arabian Monetary Authority (SAMA) revealed that the volume of new residential mortgages for individuals provided by banks and institutions continued to grow in August 2019 with 317% comparing to August 2018.

The number of real estate loans last August reached 12,306 contracts with total value 5.2 billion Riyals, achieving a growth rate of more than 218% based on year.

The SAMA report explained that the total number of individual's mortgage until August 2019 reached 96,787 contracts with total value of SR43,816 billion, compared to about 27,000 contracts with SR16,884 billion during the same period in 2018.

The number of contracts achieved growth of more than 254% and about 160% in the value compared to 2018.

According to the SAMA report, in August, the volume of financing villas is the largest proportion by 4.2 billion, which is 80% of total mortgages provided by banks and finance companies, while apartments is 13% with 668 million. The financing of purchase land came in third place by 7% with a value of SR374 million.

The report points out that, approximately 93% of the value of mortgage contracts for individuals concluded in August 2019 through commercial banks, while about 7% offered by finance companies.

In its previous reports this year, SAMA indicated that real estate loans had jumped more than 3 times this year. The total number of mortgage contracts offered to individuals in January was 9,578, compared to 2,674 in January 2018.

In February 2019 9,736 contracts compared to 3,143 contracts in February 2018. In March 2019 reach 12,148 contracts compared to 3,973 in the same month of last year.

In April, there were 14,398 mortgage contracts with a total value exceeded SR6.4 billion compared to 4,286 contracts in April 2018, and around 12,949 contracts in May with SR5.6 billion.

June contracts were 9,711 with value of SR4,362 billion. In July reached 15,961 contracts with total value SR7.2 billion, which was the highest record in the history of Saudi banks.

While the total number of residential mortgage contracts offered to individuals by the end of 2018 amounted 50,496 contracts with value of SR29.5 billion, and in 2017 about 30,833 contracts with value of SR21,025 billion, while 2016 was about 22,259 mortgage contracts worth SR17,096 billion.