The monthly bulletin issued by the Saudi Central Bank (SAMA) revealed that new residential mortgage contracts for individuals grew in 2021, reaching 171.757 contracts worth 87.7 billion riyals, while new residential mortgage contracts for individuals in July totaled 18,703 contracts worth 8.6 billion riyals.

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

New residential mortgage contracts grew by over 5% in July compared to June, which recorded 17.752 contracts, while financing provided by all banks and mortgage finance companies rose on a monthly basis by 12% compared to June, which recorded 7.7 billion riyals.

The bulletin noted that mortgage financing for residential villas in July accounted for 78% of total financing, amounting to 6.7 billion riyals, and financing for residential apartments amounted to 18%, or 1.5 billion riyals, while financing for the purchase of residential land totaled 348 million riyals, representing 4% of July’s total financing.

It is worth noting that 2020 recorded record growth, equaling the total number of contracts issued over the previous four years, with more than 295.590 contracts worth 140.7 billion riyals. In 2019, real estate financing reached historic levels, exceeding 3.5 times the amount provided in 2018, with 179.217 contracts worth 79.1 billion riyals, while mortgage loans at the end of 2018 totaled approximately 50.496 contracts worth 29.5 billion riyals. In 2017, there were approximately 30,833 contracts worth 21 billion riyals, and in 2016, 22,259 contracts worth 17 billion riyals were signed.