Mortgage loans provided by banks operating in the Kingdom rose by 5.9 percent, equivalent to 28.2 billion riyals, reaching a record high by the end of the second quarter of this year, reaching approximately 502.7 billion riyals, compared to approximately 474.5 billion riyals at the end of the first quarter of this year.
As of the end of the second quarter of this year, mortgage loans provided by banks in the Kingdom were distributed as follows: 76.5 percent to individuals, compared to 23.5 percent to companies.
According to data from the Saudi Central Bank (SAMA), the increase in mortgage loans stemmed primarily from a rise in loans to individuals, which rose by 7.4 percent, or 26.7 billion riyals, to reach 384.7 billion riyals by the end of the second quarter of 2021, compared to 358 billion riyals at the end of the first quarter of the same year.
The significant surge in mortgage loans is attributed to government housing programs, including the “Sakani” program run by the Ministry of Housing, which aims to serve 300,000 new families, enabling them to own suitable housing through various options, with 130,000 of them already living in their homes.
Meanwhile, mortgage loans provided by banks to companies rose on a quarterly basis by 1.3 percent, or 1.6 billion riyals, reaching 118.1 billion riyals by the end of the second quarter of 2021, compared to 116.5 billion riyals at the end of the first quarter of the same year.
The increase in the second quarter of 2021 marks the 12th consecutive quarterly increase in mortgage loans since the third quarter of 2018.
On a year-over-year basis, mortgage loans increased by 39.7 percent during the second quarter of this year, equivalent to 142.8 billion riyals, compared to 359.9 billion riyals at the end of the second quarter of last year.
In terms of annual growth, mortgage loans provided by banks operating in Saudi Arabia rose by 44.1 percent, equivalent to 131 billion riyals, during 2020, reaching a record high of 428.4 billion riyals by year-end, compared to 297.4 billion riyals at the end of 2019.
Mortgage loans provided by banks in Saudi Arabia to companies and individuals had increased eightfold over the past 11 years by the end of last year, rising from 53.75 billion riyals at the end of 2009 to an increase of 374.7 billion riyals during that period.
At 502.7 billion riyals. The Kingdom's banks achieve a rise in real estate loans by the end of the second quarter
