New residential real estate financing contracts for individuals achieved a significant qualitative leap during August 2021, recording 27,398 new financing contracts, a growth of 24% compared to August 2020, which recorded 22,121 contracts, according to the bulletin of the Saudi Central Bank “SAMA”.
The value of residential real estate financing during August jumped to more than 13.3 billion riyals, a growth of 32%, compared to August 2020, which recorded 10. 1 billion riyals.On a monthly basis, the number of contracts grew 47% while the value of financing rose 55% compared to last July.
The last months of this year (from January to August 2021) recorded 199,155 contracts provided by all banks and financing companies, worth 101 billion riyals with a growth of 10% in the number of contracts and 21% in financing, compared to the same period last year 2020, which recorded 180,616 contracts with a value exceeding 83.The percentage of financing provided by banks reached 97.5% of the total residential real estate financing, while the financing of residential villas for the month of August accounted for 78% of the total financing, achieving a value of 10.3 billion riyals, and residential apartments about 18% about 2.5 billion riyals, while financing the purchase of residential lands worth 527 million riyals came with 4% of financing for the month of August.
It is noteworthy that last year 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, and during 2019, real estate financing reached historical 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 30,000 contracts worth 29.5 billion, in 2017 about 30,833 contracts worth 21 billion, and in 2016, 22,259 financing contracts worth 17 billion were signed.