Sector Housing finance In Saudi Arabia, the value of financing provided to individuals increased by 9.65% compared to the same period last year, reaching a total of 81.45 billion riyals. This rise is supported by an increase in funded contracts and the number of facilities provided for the purchase of various housing units.
Significant increase in funding and number of contracts
According to Saudi Central Bank (SAMA)“The volume of Housing finance New contracts grew by 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 funding
Banks played a pivotal role in supporting housing finance, as their financing increased by 10.65% to reach 79.12 billion riyals in 11 months of 2024, compared to 71.50 billion riyals in the same period of the previous year. The number of contracts financed by banks increased by 13.6% to 107 thousand contracts compared to 94.21 thousand contracts in 2023.
Details of the facilities provided by banks
Purchase of villas: 50.18 billion riyals.
Purchase of apartments: 24.6 billion riyals.
Purchase of land: 4.34 billion riyals.
Finance companies: Declining performance
On the other hand, finance companies saw a decrease in total housing finance provided by 19.78% to reach 2.33 billion riyals in January-November 2024, compared to 2.78 billion riyals in the same period last year. The number of contracts financed by finance companies decreased by 15.07% to 2.76k contracts compared to 3.25k contracts in 2023.
Details of the facilities offered by finance companies
Buying villas: 935 million riyals.
Purchase of apartments: 1.086 billion riyals.
Purchase of land: 310 million riyals.
November performance: Significant growth in funding
The month of November 2024 witnessed a significant increase in the 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 last year.
Outlook
These figures reflect the booming housing 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 recording 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.
