The volume of mortgages in Saudi Arabia

The number of mortgages has tripled in August, in which banks and financial institutions participated to meet 12,000 loan applications, official data showed yesterday.

According to a statistical bulletin issued by the Saudi Arabian Monetary Agency (SAMA), the number of new residential mortgages extended to individuals from all financial institutions from commercial banks and finance companies continued to grow during the year 2019 to August, registering 12.3 thousand contracts during August 2019 with a value of 5.2 1 billion riyals ($ 1.3 billion), an increase of 317 per cent in the number of loans and 218 per cent in the volume of financing on an annual basis.

The total number of loans extended during 2019 to 96.7 thousand financing contracts worth 43.8 billion riyals ($ 11.6 billion), compared to 27 thousand contracts worth 16.8 billion riyals (US $ 4.4 billion) during the same period last year, achieving a growth of more than 254 per cent in the number of contracts, and about 160 per cent in the volume of funding compared to the same period in 2018.

According to the SAMA report, in August, residential villas accounted for the largest share of financing by 4.2 billion riyals ($ 1.12 billion), or nearly 80 per cent of total funding from banks and finance companies. The purchase of residential land came in third place with 7 per cent valued at 374 million riyals (about $ 100 million).

The report said that nearly 93 per cent of the value of mortgage loans to individuals in the same month was concluded through commercial banks, while about 7 per cent were concluded through mortgage companies in the Kingdom. The total number of residential mortgage loans provided to individuals by the end of 2018 amounted to about 50.4 thousand contracts with a total value of approximately 29.5 billion riyals ($ 7.87 billion), while in 2017 the number reached about 30.8 contracts worth 21 billion riyals ($ 5.6 billion), while 2016 Some 22.2 thousand financing contracts worth 17 billion riyals ($ 4.5 billion) were signed.According to a statistical bulletin issued by the Saudi Arabian Monetary Agency (SAMA), the number of new residential mortgages extended to individuals from all financial institutions from commercial banks and finance companies continued to grow during the year 2019 to August, registering 12.3 thousand contracts during August 2019 with a value of 5.2 1 billion riyals ($ 1.3 billion), an increase of 317 per cent in the number of loans and 218 per cent in the volume of financing on an annual basis.

The total number of loans extended during 2019 to 96.7 thousand financing contracts worth 43.8 billion riyals ($ 11.6 billion), compared to 27 thousand contracts worth 16.8 billion riyals (US $ 4.4 billion) during the same period last year, achieving a growth of more than 254 per cent in the number of contracts, and about 160 per cent in the volume of funding compared to the same period in 2018.

According to the SAMA report, in August, residential villas accounted for the largest share of financing by 4.2 billion riyals ($ 1.12 billion), or nearly 80 per cent of total funding from banks and finance companies. The purchase of residential land came in third place with 7 per cent valued at 374 million riyals (about $ 100 million).

The report said that nearly 93 per cent of the value of mortgage loans to individuals in the same month was concluded through commercial banks, while about 7 per cent were concluded through mortgage companies in the Kingdom. The total number of residential mortgage loans provided to individuals by the end of 2018 amounted to about 50.4 thousand contracts with a total value of approximately 29.5 billion riyals ($ 7.87 billion), while in 2017 the number reached about 30.8 contracts worth 21 billion riyals ($ 5.6 billion), while 2016 Some 22.2 thousand financing contracts worth 17 billion riyals ($ 4.5 billion) were signed.