Housing finance for individuals in the Kingdom of Saudi Arabia during the first five months of 2024 saw a notable increase, reaching 36.28 billion riyals, an increase of 3.86% compared to the same period last year.

This increase in the volume of mortgage financing the growth of the real estate sector and the increasing demand among citizens to purchase homes, supported by government initiatives promoting mortgage financing.

Increase in financed contracts:

The increase was not limited to the value of financing but also extended to the number of financed contracts; during the period in question, 48,920 contracts were financed, an increase of 6.72% compared to the same period in 2023. Of these contracts, 47,550 were financed by banks, and 1,370 were financed by finance companies.

Banks Lead the Way:

Banks played a significant role in the growth of housing finance, with the value of financing they provided reaching 35.12 billion riyals during the first five months of the year, an increase of 4.2% compared to the same period in 2023.

In terms of the number of contracts, 47,550 contracts were financed through banks, an increase of 5.44% compared to the same period last year. Bank financing was distributed as follows: 23.36 billion riyals for villa purchases, 9.72 billion riyals for apartment purchases, and 2.02 billion riyals for land purchases.

Finance Companies Make an Effective Contribution:

Alongside banks, finance companies contributed to supporting housing finance by providing facilities worth 1.16 billion riyals during the first five months of the year.

These facilities were distributed as follows: 490 million riyals to finance the purchase of villas, 529 million riyals to finance the purchase of apartments, and 143 million riyals to finance the purchase of land.

May Sees Strong Levels:

May alone saw a notable increase in housing finance, with a total value of 7.92 billion riyals, of which 7.67 billion riyals came from banks and 252 million riyals from finance companies.

These figures indicate that housing finance in the Kingdom of Saudi Arabia is steadily moving toward further growth and development, supported by increasing demand for housing and supportive measures from the government and the financial sector.