The value of real estate transactions increased by 5.6%, compared to its decrease during 2018 by 46.2%, to stabilize by the end of the year at 43.9 billion riyals “24.3%”. The commercial sector increased by 5.6%, compared to its decrease during 2018 by 46.2%, to stabilize at the end of the year at the level of 43.9 billion riyals “24.3% of total market transactions”.
The commercial sector increased by 5.6%, compared to its decrease during 2018 by 46.2%.
78.7 billion riyals of loans to individuals
Specialists attributed the recovery of the real estate market and the growth of housing sector activity to the record increase in the volume of real estate financing granted to individuals during the past year 2019, which amounted to about 78.7 billion riyals, an increase of 167%, and accounted for about 58% of the total value of residential sector transactions, and accounted for about 60% of the total value of land, villa and apartment transactions. The pace of real estate financing escalated from about 38% of the total value of residential sector transactions at the beginning of the year, to more than 85% of the total by the end of the year.
Rising land and residential real estate prices
Most land and residential real estate prices rose during 2019, influenced by the high activity of the local real estate market, as a result of the increase in the injection of real estate loans in the residential sector in particular at unprecedented levels, at the level of full-year performance, the contribution of these real estate loans to individuals for every 1.0 million riyals pumped to buy land, villas and apartments reached about 600 thousand riyals out of every 1.0 million riyals.
The contribution of these real estate loans to individuals for every 1.0 million riyals.
The flow of these mortgages throughout 2019 took an increasing pace from the beginning to the end of the year, starting from a contribution of about 401.3 thousand riyals (40.1% of the value of land, villa and apartment transactions) per 1.0 million riyals during January 2019, until it reached about 854 thousand riyals (85.4% of the value of land, villa and apartment transactions) per 1.0 million riyals by the end of the year.
Liquidity of loans and further price increases
<Followers of real estate activity note that the increase in the volume of real estate loans, which came after a long phase of stagnation in the real estate market for more than four years, was enough for the pace of prices to return to rise and inflate again, which the market witnessed during 2019, and appeared significantly during the fourth quarter of the year, which recorded a growth in the quarterly average for the fourth quarter of 2019 compared to the same quarter of 2018, amounting to 14.6% for residential land, 12.2% for residential villas, and 9.5% for residential apartments, while at the level of annual changes in the prices of residential land and real estate, the results came as follows.
211.1 billion riyals of real estate loans to individuals
The balance of mortgage loans granted to individuals by the end of 2019 is estimated to rise to more than 211.1 billion riyals, registering an annual growth of 38.9%, and the volume of new mortgage financing granted to individuals during the same year to 78.7 billion riyals, registering growth compared to its volume during 2018 “29.5 billion riyals” amounting to about 167%.
At the level of the number of individual borrowers of these real estate loans, it is estimated that by the end of 2019, their number rose to more than 394.9 thousand borrowers, compared to their numbers during 2018 at the level of 218.5 thousand borrowers, recording an annual growth of 80.7%, and this reveals a numerical increase in the number of individual borrowers for residential real estate loans exceeded 176.4 thousand borrowers during 2019, compared to the numerical increase of 50.5 thousand real estate borrowers during 2018.
Remember the increase in the number of individual borrowers of residential real estate loans during 2019, compared to their numerical increase of 50.5 thousand real estate borrowers during 2018.
Some links to news and reports from Amlak Real Estate Newspaper Issue 187
Real Estate Deals - Real Estate Projects - Investment Opportunities -
Real Estate Finance - Real Estate Deals - Building and Construction - Real Estate Deals
Editor-in-Chief Abdulaziz Al-Issa explains the story behind Amlak Real Estate's logo
Al Rajhi REIT acquires educational properties with a purchase value of 210 million riyals
Malakia Investment Company acquires Riyadh hotel apartments worth 50 million riyals
Saudi Arabian Business Magazine recognizes Riyad Bank as "Fastest Growing Bank in 2019"
Ejar program closes 2019 with 570,000 leases and 48,000 inspections
Minister of Housing calls on the private sector to support the Good Housing Initiative
Real Estate Deals
Al Rajhi Bank concludes "Corporate Credit Risk Management Program" CMA approves 30% shares of Amlak International Real Estate Finance Enmaa Bank Passes Global Business Continuity Benchmark Reports expect 1.22 million homes to be financed during Vision 2030 Analysis. Saudi REITs are positive for 9 months
UNDP provides technical support for ”Development Housing" initiatives Rusaifa Jewel Housing Project on schedule 12 banks and 5 finance companies shortened the mortgage journey Real estate deals
