Significant rise in financing value and number of contracts
<According to the statistics of Saudi Central Bank “SAMA”, the volume of residential financing for individuals jumped by about 9.65 billion riyals compared to the corresponding period of 2023, as new contracts recorded a growth of 9.6% equivalent to 12.3 thousand contracts, bringing the total to 109.76 thousand contracts compared to 97.46 thousand contracts in the same period last year.New contracts recorded a growth of 9.6% equivalent to 12.3 thousand contracts, bringing the total to 109.76 thousand contracts compared to 97.46 thousand contracts in the same period last year.
Banks lead growth in financing
<Banks played a pivotal role in supporting housing finance, as their financing increased by 10.65% to reach 79.12 billion riyals in the 11 months of 2024, compared to 71.50 billion riyals in the similar period of the previous year. The number of bank-financed contracts increased by 13.6% to reach 107 thousand contracts compared to 94.21 thousand contracts in 2023.The number of bank-financed contracts also increased by 13.6% to reach 107 thousand contracts compared to 94.21 thousand contracts in 2023.
Details of facilities provided by banks
Purchase of villas: 50.18 billion riyals.
Purchase of apartments: 24.6 billion riyals.
Land purchase: 4.34 billion riyals.
Finance companies: Decline in performance
On the other hand, finance companies witnessed a decrease in the total housing finance provided by 19.78%, reaching 2.33 billion riyals in the period from January to November 2024, compared to 2.78 billion riyals in the same period last year. The number of contracts financed by financing companies decreased by 15.07% to 2.76 thousand contracts compared to 3.25 thousand contracts in 2023.
The number of contracts financed by financing companies decreased by 15.07% to 2.76 thousand contracts compared to 3.25 thousand contracts in 2023.
Details of facilities provided by finance companies
Purchase of villas: 935 million riyals.
Purchase of apartments: SAR 1.086 billion.
Land purchase: 310 million riyals.
November performance: Significant growth in financing
November 2024 witnessed a significant rise in financing provided to individuals by finance companies, as 13.14 thousand contracts worth SAR 10.06 billion were financed, an increase of 51.22% compared to November 2023. While the value of financing provided by finance companies decreased to 201 million riyals compared to 310 million riyals in the same month of last year.
While the value of financing provided by finance companies decreased to 201 million riyals compared to 310 million riyals in the same month of last year.
Future Outlook
These figures reflect the booming residential finance sector in Saudi Arabia, supported by economic growth and government initiatives to incentivize real estate ownership. With continued bank support and increased facilities, the sector is expected to continue to record positive growth rates in the coming years, further stabilizing the real estate market and contributing to achieving the goals of the Kingdom's Vision 2030.
