Data from the Saudi Central Bank revealed that villas accounted for the largest share of new residential financing provided to individuals last February, reaching 4.61 billion riyals, compared to 2.09 billion riyals for apartment purchases, and 503 million riyals in financing for land purchases during February.

SAMA data showed that the value of new housing financing provided to individuals in the Kingdom by banks and finance companies during last February, recording 7.21 billion riyals in February 2024; compared to 7.42 billion riyals in the same month of 2023. This represents a decrease of 213 million riyals, or 2.91%, from the same period in 2023.

The number of financed contracts also decreased slightly by 1.04%, equivalent to 103 contracts on a year-over-year basis; bringing the total number of financed contracts to 9,800, compared to 9,910 contracts financed in the same month of 2023.

In addition, new residential financing for individuals provided by banks in the Kingdom by 2.76% during February 2024 to 6.94 billion riyals, compared to 7.14 billion riyals during the same month last year. According to SAMA data, the number of contracts financed by banks during that period also decreased by 0.73% to 9,500 contracts, compared to 9,570 contracts financed last February.

Meanwhile, the total volume of financing provided by banks and finance companies since the beginning of this year 15.02 billion riyals, a decline of approximately 6.74% compared to 16.11 billion riyals in the same period of 2023, equivalent to 1.08 billion riyals.

It is worth noting that during last January, the volume of new housing financing for individuals also decreased year-on-year by 10.1%, with a decline of 872 million riyals compared to the results of the same month last year, 2023.

In January, the value of new housing financing provided to individuals in the Kingdom by banks and finance companies reached 7.8 billion riyals; compared to 8.68 billion riyals in the same month of 2023.

Housing Finance for Villas