Data Saudi Central Bank “SAMA” revealed that the total new residential real estate financing for individuals, provided by commercial banks and financing companies in Saudi Arabia during the first quarter of 2024, compared to the same quarter of last year. The data showed a decline in real estate financing during the first quarter of 2024 by 3%, a decrease equivalent to 714.4 million riyals, to decrease the volume of financing to 22870 million riyals in the first quarter of 2024 compared to 23584 million riyals for the same quarter of 2023.

Saudi Central Bank data showed that the volume of real estate financing granted by banks in the first quarter of 2024 recorded about 22103 million riyals, compared to 22762 million riyals, a decrease of 2.9%, equivalent to 659.1 million riyals.

The volume of real estate financing granted by banks in the first quarter of 2024 decreased to 22103 million riyals, compared to 22762 million riyals for the same quarter of 2023.

Real estate financing granted by financing companies also decreased, but by a larger percentage of 6.7% to 767 million riyals, compared to 822 million riyals in the first quarter of 2023, due to higher interest rates, which are believed to have a greater impact on financing companies than on banks.

This decline is due to high interest rates, which are believed to have a greater impact on financing companies than on banks. <During Q1 2024, the number of contracts financed decreased slightly by 0.06%, equivalent to 21 contracts year-on-year, bringing the total number of contracts financed to 31.34 thousand contracts, compared to 31.26 thousand contracts financed in the comparative period of 2023. The number of contracts financed by banks during the period increased to 30.33 thousand contracts, compared to 30.21 thousand contracts financed in the first quarter of 2023.

The number of contracts financed by banks during the period increased to 30.33 thousand contracts.

Monthly performance in residential real estate financing improved

<Although real estate financing declined quarter-on-quarter, new residential mortgage financing for individuals improved and rose on a monthly basis with a growth rate of 8.9% to reach 7848 million riyals in March 2024 compared to 7209 million riyals in February 2024, and commercial banks accounted for 97.1% of the volume of financing provided equivalent to 7623 million riyals in March 2024, compared to 96.3% equivalent to 6941 million riyals in February 2024.

Mortgage financing granted by finance companies in March 2024 decreased by 15.9% equivalent to 42.7 million riyals to fall to 225 million riyals representing 2.9% of the total financing volume, compared to 268 million riyals in February 2024 representing 3.7% of the total volume of new residential mortgage financing.

SAR 305 million worth of facilities were provided for the purchase of villas in the first quarter from finance companies, compared to SAR 351 million for apartments and SAR 111 million for land purchases during the period.

The number of contracts financed in the first quarter from financing companies decreased to 909 contracts, compared to 1.046 thousand contracts in the first quarter of 2023, down by 13.09%, equivalent to 137 contracts.

The number of contracts financed in the first quarter from financing companies decreased to 909 contracts, compared to 1.046 thousand contracts in the first quarter of 2023, a decrease of 137 contracts.

While the volume of new housing finance amounted to about 15.02 billion riyals during last January and February, down by about 6.74%, compared to 16.11 billion riyals in the same period of 2023, equivalent to 1.08 billion riyals.

New housing finance volume amounted to about 15.02 billion riyals during last January and February, down by 6.74%, equivalent to 137 contracts.

In March, about 272 contracts were financed by financing companies worth 225 million riyals, compared to 228 million riyals in the same month of 2023, decreasing during March by about 1.31%.

It is noteworthy that the new residential real estate financing for individuals, whether from banks or financing companies, aims to finance the purchase of three main products in order of relative importance (villas - apartments - lands).