Saudi retail mortgage loans more than triple in September: SAMA

05/11/2019 Argaam Special

 

Mortgage loans provided to retail clients by banks in Saudi Arabia increased by 255% year-on-year (YoY) to SAR 6.64 billion in September 2019, data issued by the Saudi Arabian Monetary Authority (SAMA) showed.

 

When compared to the previous month, mortgage loans rose by around SAR 1.74 billion.

 

New Retail Housing Loans (SAR mln)*

Period

2018

2019

Variation

January

1,643

4,431

+170%

February

1,908

4,224

+121%

March

2,416

5,199

+115%

April

2,479

6,035

+143%

May

2,252

5,187

+130%

June

959

4,051

+322%

July

2,267

6,678

+195%

August

1,510

4,903

+225%

September

1,873

6,642

+255%

October

3,054

--

 

November

3,287

--

 

December

3,366

--

 

*Does not include interest

 

Villa mortgages accounted for 82 percent, or SAR 5.42 billion of total housing loans provided in September.

 

Apartments and land plots followed with SAR 736 million and SAR 489 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

September

5,417

736

489

*Doesn’t include interest

 

A total of 16,016 contracts were signed between banks and retail clients in September 2019, a rise of 359 percent YoY.

 

The Number New Retail Housing Loans Contracts by Bank (SAR mln)*

Period

2018

2019

Variation

January

2,553

9062

+255%

February

2959

9049

+206%

March

3716

11506

+210%

April

3894

13712

+252%

May

3707

12071

+226%

June

1675

9122

+445%

July

4031

15025

+273%

August

2742

11747

+328%

September

3490

16016

+359%

October

5695

--

--

November

6307

--

--

December

6116

--

--

*Does not include interest

 

Financing firms provided new mortgages for residential units worth SAR 483 million in September, a 182 percent YoY increase.

 

The Number New Retail Housing Loans Contracts by Financing Company (SAR mln)*

Period

2018

2019

Variation

January

90

335

+272%

February

171

397

+132%

March

178

361

+103%

April

256

384

+50%

May

287

466

+62%

June

107

311

+191%

July

225

522

+132%

August

136

332

+144%

September

171

483

+182%

October

352

--

--

November

276

--

--

December

240

--

--

*Does not include interest

 

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

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