The monthly bulletin issued by the Saudi Central Bank “SAMA” revealed the growth of new residential mortgage contracts for individuals during 2021, recording 171,757 contracts worth 87.7 billion riyals, while new residential mortgage contracts for individuals during July amounted to 18,703 contracts worth 8.6 billion riyals.

New residential mortgage contracts from January through July 2021 recorded an annual growth of more than 8% and 20% in financing compared to the same months of 2020, which recorded 158.495 contracts worth more than 73.2 billion riyals.

New residential financing contracts achieved growth during July exceeded 5% compared to June, which recorded 17.752 contracts, while financing provided by all banks and mortgage companies increased on a monthly basis by 12% compared to June, which recorded 7.The bulletin indicated that mortgage financing for residential villas during July amounted to 78% of the total financing with 6.7 billion riyals and residential apartments 18% with 1.5 billion riyals, while financing for the purchase of residential land came with 348 million riyals with 4% of financing for July.

It is noteworthy that 2020 recorded a record growth equal to the total provided during the previous 4 years in the number of contracts exceeding 295.590 contracts worth 140.7 billion riyals and during 2019, real estate financing reached historic rates that exceeded 3.5 times what was provided in 2018 with 179,217 contracts worth 79.1 billion riyals, while financing loans by the end of 2018 amounted to about 50,496 contracts worth 29.5 billion riyals and in 2017 about 30,833 contracts worth 21 billion riyals and 2016 saw 22,259 contracts worth 17 billion riyals.