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Contrary to expectations, real estate financing rises in various regions of the Kingdom

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The Saudi Monetary Authority's (SAMA) quarterly report revealed that real estate banks" portfolios rose to SR186.4 billion in the fourth quarter of 2015, nearly a year after the 30% requirement came into effect. This was contrary to expectations that the 30% requirement would put Saudi banks in the predicament of low demand among customers looking to buy real estate.

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According to the SAMA report issued in March 2016, real estate loans granted by banks and licensed financial institutions operating in the Kingdom to individuals and companies recorded an increase of 17% compared to the same period in 2014, which recorded loans worth 158.9 with a difference of 27.4 billion riyals.

According to the SAMA report issued in March 2016.

According to the report, real estate loans granted by these banks to individuals increased during the fourth quarter of 2015 to reach about 102.2 billion riyals, an increase of 8.4% compared to 94.2 billion riyals during the same period last year, a difference of 7.9 billion riyals. Real estate loans granted by these banks to companies increased to about 84.2 billion riyals, an increase of 30% compared to about 64.7 billion riyals and a difference of 19.5 billion riyals for the same period.