Saudi's home financing contracts grow 53% YoY to $3bn in July 2020

The Saudi Arabian Monetary Agency (SAMA) shows a 54% YoY growth in funding to reach $3bn (SAR11.1bn) in July 2020

Saudi's home financing contracts grow 53% YoY to $3bn in July 2020 [representative image]
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Saudi's home financing contracts grow 53% YoY to $3bn in July 2020 [representative image]

The number of new home financing contracts in Saudi Arabia has grown to 24,432 contracts to reach a value of more than $3bn (SAR11.1bn) in July 2020, marking a 53% YoY growth in contracts compared to 15,961 contracts in July 2019, and a 54% YoY growth in funding compared to a value of $1.9bn (SAR7.2bn) during the same period last year.

The monthly statistical bulletin issued by the Saudi Arabian Monetary Agency (SAMA) showed that new home financing contracts continued to grow through 2020, reaching 156,250 contracts within the first seven months of the year, marking an 85% year-on-year growth.

In addition, the volume of financing also grew to $19.28bn (SAR72.34bn) between January 2020 and July 2020, achieving an 88% growth compared to the same period in 2019.

SAMA revealed that nearly 97% of the value of mortgage finance contracts submitted to individuals in July 2020 was through banks, while approximately 3% of it was through mortgage companies in the kingdom.

Meanwhile, villa financing contracts accounted for 79% of the financing at approximately $2.35bn (SAR8.83bn); apartment contracts accounted for 15% of the financing worth $426.5m (SAR1.6bn); and residential lands accounted for the remaining 6% of the financing with a value of $172.7m (SAR648m).

SAMA statistics also showed a growth in the number of real estate loans provided to individuals during the past year, according to the state-run Saudi Press Agency.

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