Recent data released by Saudi Central Bank “SAMA” showed a significant increase in the volume of new residential mortgage financing provided by banks in the Kingdom, reaching 8.14 billion riyals by the end of last October, compared to 6.82 billion riyals in the previous September, an increase of nearly 1.2 billion riyals, reflecting a growth of nearly 19.3%.
Research data from the Saudi Central Bank (SCB) showed that the volume of new residential mortgages to individuals reached 8.14 billion riyals compared to 6.82 billion in the previous month of September, an increase of nearly 1.2 billion riyals, reflecting a growth of nearly 19.31 TP3T.
Details of real estate sectors
According to the report, real estate financing new residential financing for individuals was distributed into three main segments:
- Villas: Accounted for the largest share of financing at SAR 4.82 billion, representing 59.2% of the total financing.
- Apartments: Ranked second with SAR 2.85 billion, equivalent to 35% of the total.
- Land: SAR 2.85 billion, equivalent to 35% of the total.
- Land: Financed with 458 million riyals, representing 5.6% of the total financing.
- Individuals: The volume of loans to individuals amounted to SAR 656.88 billion during the third quarter, compared to SAR 639.52 billion in the second quarter.
- Corporates: Loans to companies rose to SAR 189.59 billion in the third quarter, compared to SAR 175.11 billion in the second quarter.
In terms of contracts, the number of new contracts concluded during October reached 11,000, compared to 9,321 in September, indicating an increase of approximately 18%.
Total Mortgage Loans
SAMA's statistical bulletin showed that the total real estate loans provided by commercial banks in the Kingdom reached SR846.48 billion by the end of the third quarter of 2024, compared to SR814.64 billion at the end of the second quarter of the same year.
Villas lead the real estate scene
Figures released by SAMA confirm that residential villas remain the first choice of individuals in the Kingdom, accounting for the largest proportion of mortgage financing. This trend reflects the growing demand for luxury and independent housing units in light of the demographic and social shifts taking place in the Kingdom, in addition to government programs that promote home ownership.
Continuous growth reflects market trend
The remarkable growth in the volume of real estate financing indicates the dynamism of the real estate sector in the Kingdom and its responsiveness to the growing housing needs. It also reflects the positive impact of economic reforms and financing policies that seek to empower individuals to realize the dream of ownership.
As this growth continues, the Kingdom's real estate sector will continue to grow. As this growth continues, the real estate sector is expected to continue to play a pivotal role in achieving the goals of Saudi Vision 2030, both in terms of supporting home ownership by citizens and promoting real estate investments in various sectors.
With this growth, the real estate sector is expected to continue to play a pivotal role in achieving the goals of Saudi Vision 2030.
