Retail mortgages experiencing a "surge" that has contributed to a growing boom

"Beja": the determination of the state arouses strong signs to solve the housing problem

"The increase in real estate financing for individuals in 2018 is a growth boom," said Khalid al-Mubaid, a real estate developer. "This will result in a strong demand for real estate products, which the Ministry of Housing will provide more than expected in the coming period.

SAMA data show a significant increase in the volume of new housing finance for individuals from banks to 27.02 billion riyals by the end of 2018, an increase of 43 percent over 2017.

"The Housing Ministry understood very early the importance of mortgage financing in solving the housing problem and decided to activate more than ever the funding programs in the community," he said. . "Along with Vision 2030," we found that most commercial banks are launching their real estate financing programs for individuals and are looking to attract customers to provide the necessary financing to become homeowners, "he said.

"If we go back, we find that the trajectory of real estate loans has increased from year to year.In 2016, real estate loans amounted to 14.93 billion riyals, in 2017 to 18.92 billion riyals and in 2018 to 27.02 billion riyals, which confirms that the government of the Depositary of the Two Holy Mosques decided to solve the problem of housing in the simplest and fastest way, in various ways, including by activating mortgage loan programs, and calling on citizens to benefit from them.

"The continued pace of growth of home loans as it stands in 2019 will help increase demand for departmental products of all kinds."

"The ovary" has recommended to the Ministry of Housing to assign similar mortgages to real estate developers. "The expected demand for residential products resulting from the growth of mortgages for individuals should be accompanied by an increase in the number of products offered for sale.This requires the support of real estate developers for loans they need to increase their housing projects to meet the needs expected from this year. "

"I do not exaggerate if we confirm that today we are seeing clear signs of solving the housing problem.These signs are based on the state's willingness to solve the problem of housing. housing, "said Dr. Salim Baajah, real estate analyst.

He added: "The Ministry of Housing's policy is focused on strengthening mortgage programs and solving problems that prevent it." "If we follow the obstacles that have contributed to the housing problem in the Kingdom in recent decades, we find that one of them is the weakness of real estate financing and that the banks are worried about the expansion of funding programs, and because of weak legislation and regulations guaranteeing rights, the current context has changed significantly, the programs of the Ministry of Finance, in partnership with banks and mortgage lenders compete to encourage citizens to obtain the necessary mortgage, which helps to increase the demand for real estate products.

"I expect that the year 2019 will see a considerable increase in the mortgage financing provided by banks and finance companies, which could exceed 30% compared to 2018, which will strengthen the ability of the banks to raise money. the country's goal of bringing the participation ratio to 60% by 2020, and reach 70% by 2030, compared to 49.9% in 2017, at the discretion of the Statistical Authority. "

"The Housing Ministry's policy of increasing the supply of real estate products, along with the development of mortgage programs, will help solve the housing problem quickly," he said. "The ministry has pledged 280,000 real estate products in 2017. Last year, I promised 300,000 real estate products, delivered on my promises and, as the growing supply of housing kept pace with the growth of mortgages she promises to solve the housing problem quickly. "