real estate loans provided by banks operating in Saudi Arabia recorded a new rise by the end of the third quarter of this year, registering about 533.5 billion riyals, compared to about 502.7 billion riyals at the end of the second quarter of the same year, recording a rise of 6.1%, equivalent to 30.7 billion riyals.
According to data from the Saudi Central Bank "SAMA", the rise in the third quarter is the 13th consecutive quarterly rise in real estate loans since the third quarter of 2018, and real estate loans provided by banks operating in Saudi Arabia increased by 36% equivalent to 141.1 billion riyals, as it was 392.1 billion riyals at the end of the third quarter of last year.
According to the data of the Saudi Central Bank "SAMA", the rise in the third quarter is the 13th consecutive quarterly rise in real estate loans.
The surge in mortgage loans is attributed to government housing programs, including the Ministry of Housing's "Sakani" program, which aims to serve 220,000 new families to enable them to own the appropriate housing within multiple options, of which 150,000 are living in their homes.
This confirms that the increase in real estate loans during the third quarter on a quarterly basis came mainly from the rise in loans to individuals, which rose 7.3 percent and the value of 27.9 billion riyals, to reach 412.6 billion riyals by the end of the third quarter of this year compared to 384.7 billion riyals at the end of the second quarter of the same year.
The increase in real estate loans during the third quarter of this year.
While real estate loans provided by banks to companies rose 2.4%, equivalent to 2.8 billion riyals, to reach 120.8 billion riyals by the end of the third quarter compared to 118.1 billion riyals at the end of the second quarter.
Year-on-year, loans to individuals rose 47.8 percent to SAR 133.4 billion from SAR 279.2 billion at the end of the third quarter of last year.
Year-on-year, loans to individuals rose 47.8 percent to SAR 133.4 billion.
While real estate loans provided by banks to companies increased by 7 percent, equivalent to 7.9 billion riyals, from 112.9 billion riyals at the end of the third quarter of last year.
The distribution of real estate loans provided by banks in Saudi Arabia at the end of the third quarter of this year was 77.3 percent for individuals, compared to 22.7 percent provided to companies.
In terms of annual development, real estate loans provided by banks operating in Saudi Arabia increased 44.1 percent, equivalent to 131 billion riyals during the past year 2020, to reach a record level of 428.4 billion riyals at the end of the year, compared to 297.4 billion riyals at the end of 2019.
Mortgage loans provided by banks in Saudi Arabia to companies and individuals at the end of last year increased eight times during the 11 years, from 53.75 billion riyals at the end of 2009, an increase of 374.7 billion riyals during the period.
