Mortgage loans jump 258% year-over-year

More than 9,000 new mortgages, of which 80% guaranteed by "housing"

In January 2018, the number of mortgage contracts increased by a very strong 258% compared to January 2018, reaching 9578 contracts worth more than 4.76 billion riyals in January 2019.

A recent report from the Saudi Monetary Agency (SAMA) on Mortgage Indicators found that 80% of the total new mortgage finance granted by banks and mortgage companies in January 2019 was for the Department's housing products. Housing, About 7,648 contracts in January.

In January, Saudi banks allocated a total of 9,062 financing contracts for a total of 4,431,000,000 riyals, including 3,520 for the purchase of residential villas, 652 for the purchase of apartments and 349 for the purchase of residential villas. purchase of land. Raised 516 financing contracts amounting to 335 million riyals, housing villas accounted for nearly 80% of the total financing of banks and finance companies.

Given the importance of real estate financing provided in January 2019 and compared to the funding provided in the first quarter of the previous year 2018, we note that the contracts in January, close to the number of contracts signed in January during the first quarter of last year, 2018 million euros. 9790 contracts, compared to financing contracts which amounted to 9578 contracts worth more than 4.76 billion riyals in January. According to a report by SAMA on Mortgage Financing Indicators.

The report also shows that 93% of these contracts were passed through banks and the rest by other finance companies. The total number of contracts in one month increased by 48% compared to December 2018, posting a strong growth of 258%. , Compared to the same month, last January, 2018 m.

Residential villas accounted for 79.3% of total financing in January, residential apartments 13.2% and land about 7.5% of total funding, the majority of which accounted for about 76% of the total. The contracts concluded in January are Murabaha fixed rate contracts.

SAMA announced in its previous reports that the total number of mortgage contracts offered to individuals in 2016 amounted to 20,132 contracts worth 14.9 billion riyals and that in 2017, approximately 28,469 contracts worth 18.9 billion totaled 46,885 contracts.

Market research (Jadwa Investment Report) predicted that the real estate market would continue to grow by 2.7 to 6 percent this year by the end of 2019. This is based on the recent announcement from the Ministry of Housing regarding projects. Accelerating Ownership by Providing Housing Options This program is being developed by Housing, a program of the Ministry of Housing, which aims to announce the number of owners of multiple housing options per month.

The total number of housing options offered by the Department of Housing last year, 2018, is about 313,000 dwellings. This year, the number of beneficiaries is expected to increase by about 200,000 new beneficiaries, after the program has provided about 583,000 housing units since its launch in 2017, owned by the Ministry of Housing and Construction, the project will be completed by 2019, according to Ministry data announced early 2019. In addition to the construction work of 45 projects in 16 cities of the Kingdom, Provide 77 972 diverse housing and distributor With the aim of increasing the number of homeowners to 60% by 2020 and reach 70% by 2030.