Saudi retail mortgage loans more than triple in August: SAMA

Mortgage loans provided to retail clients by banks in Saudi Arabia increased by 225% year-on-year (YoY) to SAR 4.9 billion in August 2019, data issued by the Saudi Arabian Monetary Authority (SAMA) showed.

When compared to the previous month, mortgage loans retreated by around SAR 1.8 billion in August.

New Retail Housing Loans (SAR mln)*
Period	2018	2019	Variation
January	1,643	4,431	+61%
February	1,908	4,224	+21%
March	2,416	5,199	+20%
April	2,479	6,035
May	2,252	5,187
June	959	4,051
July	2,267	6,678
August	1,510	4,903
September	1,873	--
October	3,054	--
November	3,287	--
December	3,366	--

*Does not include interest

Villa mortgages accounted for 80 percent, or SAR 3.93 billion of total housing loans provided in August.

Apartments and land plots followed with SAR 605 million and SAR 370 million, respectively.

New Retail Housing Loans by Product Type (SAR mln)*
Period	Villas	Apartments	Land
January 2018	1,286	229	128
February	1,451	298	159
March	1,906	335	175
April	2,016	286	176
May	1,864	225	164
June	791	104	64
July	1,921	189	157
August	1,251	144	115
September	1,532	192	149
October	2,511	324	219
November	2,677	360	250
December	2,788	355	224
January 2019	3,520	562	349
February	3,436	466	322
March	4,218	549	432
April	4,910	636	489
May	4,223	610	354
June	3,208	524	319
July	5,279	830	569
August	3,928	605	370

*Doesn’t include interest

A total of 11,747 contracts were signed between banks and retail clients in August 2019, a rise of 328 percent YoY.

The Number New Retail Housing Loans Contracts by Bank (SAR mln)*
Period	2018	2019	Variation
January	2,959	9,049	+255%
February	3,716	11,506	+206%
March	3,894	13,712	+210%
April	3,707	12,071	+252%
May	1,675	9,122	+226%
June	4,031	15,025	+445%
July	2,742	11,747	+273%
August	3,490	--	+328%
September	5,695	--	--
October	6,307	--	--
November	6,116	--	--
December	2,959	9,049	--

*Does not include interest

Financing firms provided new mortgages for residential units worth SAR 332 million in August, a 143 percent YoY increase.

The Number New Retail Housing Loans Contracts by Financing Company (SAR mln)*
Period	2018	2019	Variation
January	90	335	+273%
February	171	397	+133%
March	178	361	+103%
April	256	384	+50%
May	287	466	+62%
June	107	311	+191%
July	225	522	+132%
August	136	332	+143%
September	171	--	--
October	352	--	--
November	276	--	--
December	240	--	--

*Does include interest

SAMA issued new directives in May 2018 obligating all banks and mortgage companies to provide mortgages to individuals, as per the due regulations.

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