housing finance in Saudi Arabia saw a remarkable growth during May 2024, as data from the Saudi Central Bank (SAMA) showed a significant rise in new financing provided to individuals.

• The value of new residential mortgage jumped 44% compared to April 2024, reaching 2.3 billion riyals.
• This rise is attributed to real estate market activity during May, and attractive bank financing offers.

Villas take center stage:

• Residential villas accounted for the largest share of the total financing provided by banks last May, worth 5.1 billion riyals and accounting for 67%.
• This was followed by apartments with SAR 2.15 billion, then land with SAR 408 million.

Growth in the number of contracts concluded:

• The number of contracts concluded between banks and individuals during May 2024 increased to 101.1 thousand contracts.
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• This represents an increase of 14% over the same period last year.
• These figures indicate consumer confidence in the real estate sector and their willingness to invest in real estate.

Contribution of finance companies:

• The volume of new residential mortgage financing provided to individuals by finance companies during last May amounted to 252 million riyals.
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• This figure is up 7% compared to May 2023.
• This increase is an indication of the diversity of real estate finance available to consumers in the Kingdom.

Overall, this data points to a thriving residential real estate finance sector in Saudi Arabia. With continued demand for real estate and government support, these indicators offer a positive outlook for the future of this vital sector.