The monthly bulletin issued by the Saudi Central Bank “SAMA” revealed that new residential real estate financing contracts for individuals grew during the first half of this year 2021, recording 153,054 contracts with a value of more than 79 billion riyals, while new residential real estate financing contracts for individuals during last June recorded 17,752 contracts, with a value of more than 7.The bulletin indicated that new residential mortgage contracts recorded a growth of more than 14% during the first half of 2021 and about 27% in financing compared to the same period of last year 2020, which recorded 134,063 contracts worth 62.1 billion riyals, and on a monthly basis, the number of mortgage contracts grew by 2% compared to May 2021.
The bulletin indicated that mortgage financing for residential villas amounted to 77% of the total financing worth 6 billion riyals, and residential apartments about 18% with about 1.3 billion riyals, while financing the purchase of residential land worth 391 million riyals came at 5%.It is noteworthy that 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 about 50,496 contracts worth 29.5 billion, and in 2017 about 30,833 contracts worth 21 billion, and 2016 saw 22,259 financing contracts worth 17 billion.