New residential mortgage contracts for individuals during the month of May of the current year 2021 recorded about 17,460 contracts with a growth of more than 11% compared to May of last year 2020, which recorded 15.73 thousand contracts worth 7.9 billion riyals, while mortgage financing during May 2021 grew to more than 9 billion riyals by 14%, according to the monthly bulletin issued by the Saudi Central Bank “SAMA”, according to the monthly bulletin issued by the Saudi Central Bank.
The total number of new residential mortgage contracts for individuals amounted to 135,302 contracts with a growth of 27% since the beginning of the year 2021 until May, while the value of financing exceeded 71.4 billion riyals until May 2021, and the growth rate in real estate financing reached 48% compared to the same period last year 2020, which recorded 48.2 billion riyals with 107,033 contracts.
The bulletin indicated that the percentage of financing through banks exceeded 98%, while 2% of them were concluded through real estate finance companies during the month of May 2021, and mortgage financing for residential villas amounted to about 80% of the total financing worth 7.3 billion riyals, and residential apartments 16% with about 1.4 billion riyals, while financing the purchase of residential lands worth 415 million riyals came at 4%.
The last year 2020 recorded a record growth in the number of contracts exceeding 295,590 contracts worth 140.7 billion, and during 2019, real estate financing reached historic rates that exceeded 3.5 times what was provided in 2018 by 179,217 contracts worth 79.1 billion, while financing loans by the end of 2018 amounted to 50,496 contracts worth 29.5 billion, in 2017 about 30,833 contracts worth 21 billion, and 2016 witnessed the signing of 22,259 financing contracts worth 17 billion.