Monday, November 30, 2020 3:10 AM
The number of new residential home finance contracts for individuals since the beginning of this year to October 2020 exceeded the total presented in the years 2018 and 2019 combined as the number of finance contracts reached 234,466 contracts worth more than 109.2 billion riyals, according to the monthly statistical bulletin of the Central Bank of Saudi Arabia “SAMA”.
Details show that for 10 months of the current year 2020, the number of real estate loans has increased by 73% compared to the same period in 2019, when 135,348 contracts were registered, an 81% increase in financing compared to the same period last year, which was about 60.2 billion.
Compared to October 2019, housing financing realized an increase of about 20% in the number of contracts in October 2020 and about 35% of financing, which registered the third highest increase in terms of the number of contracts and financing through about 25,961 new financing contracts in worth 12.5 billion rial.
While the number of contracts supported in October through the Housing Programs and the Real Estate Development Fund, and submitted through banks and real estate financiers, reached about 25,033 contracts, representing 96% of the contracts signed, with a value of 11.9 billion riyals, or 95 % of funding in October 2020.
SAMA bulletin showed that in October, banks provided nearly 97% of the value of real estate finance contracts to individuals, and about 3% of that through real estate finance companies, while villa finance contracts accounted for 81% of financing for about 10.1 billion and 14% for apartments with a value of nearly 1.7 billion. SAR, and about 5% of the funding for residential areas worth 659 million.
It is noteworthy that SAMA statistics showed a growth in the number of mortgage loans to individuals during the past year 2019 at interest rates 3.5 times higher than what was previously presented by about 179 thousand contracts worth 79.1 billion, while financing loans at the end of 2018 amounted to approximately 50,000 contracts, with a total value of approximately 29.5 billion. In 2017, approximately 30,833 contracts with a value of more than 21 billion euros were signed and in 2016, 22,259 financing contracts worth 17.1 billion euros were signed.
Source: electronic newspaper Sabq