Data released by the Saudi Central Bank (SAMA) showed that real estate loans granted by finance companies during the first quarter of 2024 saw a slight growth of 1% year-on-year, reaching SAR27.35 billion compared to SAR27.07 billion in the same period of 2023.
Data-sourcepos="3:1-3:39">Data released by the Saudi Central Bank (SAMA) showed that real estate loans granted by finance companies during the first quarter of 2024 saw a slight increase of 1% year-on-year to reach SAR27.35 billion.
real estate loans granted to individuals by finance companies accounted for the largest share of total loans, amounting to SAR 22.90 billion, equivalent to 84% of total loans. Real estate loans granted to companies accounted for only 16% of the total loans, worth SAR 4.44 billion.
The monthly bulletin indicated that the new residential real estate financing for individuals provided by banks is distributed among 3 sectors, where financing in the villas sector reached 14.5 billion during the first quarter compared to more than 15.6 billion riyals during the first quarter of 2023, adding that residential real estate financing in the apartments sector reached 6.1 billion riyals during the first quarter of 2024 compared to more than 5.8 billion riyals during the same quarter of last year. The monthly bulletin pointed out that the new residential real estate financing for individuals provided by banks is distributed among 3 sectors, where financing in the villas sector reached 14.5 billion during the first quarter compared to more than 15.6 billion riyals during the first quarter of 2023.
She also pointed out that the total residential real estate financing in the land sector exceeded SAR 1.3 billion during the first quarter of this year compared to more than SAR 1.2 billion during the first quarter of last year.
In contrast, real estate loans provided by commercial banks in the Kingdom recorded a remarkable 94.5% year-on-year increase during the first quarter of 2024, reaching SAR 800.5 billion compared to SAR 705.9 billion in the same period of 2023. Real estate loans provided by commercial banks in the Kingdom.
According to the monthly statistical bulletin for May issued by the Central Bank of Saudi Arabia, real estate loans provided by commercial banks to individuals reached SAR 625.2 billion during the first quarter, representing 78% of total real estate loans provided by commercial banks against SAR 566.9 billion during the first quarter of 2023. Real estate loans to corporates accounted for only 22% of total commercial bank loans, worth SAR 175.2 billion compared to SAR 139 billion in Q1 2023.
This disparity in growth rates between finance companies and commercial banks suggests that there could be various factors driving this difference. These factors may include finance companies focusing on certain segments of borrowers or specific types of real estate, while commercial banks may have a greater ability to offer mortgages with competitive interest rates to attract more customers. This disparity in growth rates between finance companies and commercial banks suggests that there could be different factors driving this difference.
Overall, the performance of mortgage loans during the first quarter of 2024 suggests continued strong demand for real estate in Saudi Arabia, with varying growth rates between finance companies and commercial banks. Generally speaking, the performance of mortgage loans during the first quarter of 2024 suggests continued strong demand for real estate in Saudi Arabia, with varying growth rates between finance companies and commercial banks.
Dominance of retail mortgages:
Huge growth in commercial bank loans:
Dominance of retail loans in commercial banks:
