Home loans to individuals fall 11% to SAR 5.3B in June 2024

04/08/2024 Argaam Special
Saudi Arabian banknotes

Saudi Arabian banknotes


Residential mortgages granted to individuals by banks in Saudi Arabia dropped by 11% year-on-year (YoY) to SAR 5.31 billion in June 2024, data issued by the Saudi Central Bank (SAMA) showed.
 
The value of new residential mortgage financing decreased by approximately SAR 2.4 billion, marking a 31% decline compared to May 2024.
 

The following table details the value of residential retail mortgages:

 

New Residential Mortgages by Banks*​

Month

2023

2024

Change

January

8,373

7,539

(10%)

February

7,138

6,941

(3%)

March

7,251

7,623

+5%

April

4,146

5,341

+29%

May

6,801

7,674

+13%

June

5,969

5,307

(11%)

July

5,425

--

--

August

7,142

--

--

September

5,837

--

--

October

6,766

--

--

November

6,655

--

--

December

6,237

--

--

Total

8,373

7,539

--

*Interest not included.

 

Mortgages granted for the purchase of villas took the lion’s share of total housing loans provided to individuals in June 2024 at 65% (SAR 3.4 billion). Apartments and land plots followed with SAR 1.62 billion and SAR 263 million, respectively, as indicated below:

 

New Residential Mortgages by Product Type (SAR mln)*​

Period

Villas

Apartments

Lands

January 2023

5,645

2,315

413

February

4,964

1,823

351

March

5,048

1,745

457

April

2,781

1,050

314

May

4,684

1,734

383

June

4,244

1,429

297

July

3,897

1,226

301

August

4,967

1,776

399

September

3,978

1,563

297

October

4,455

1,943

367

November

4,363

1,964

328

December

4,307

1,676

255

January 2024

5,132

1,967

440

February

4,529

1,980

433

March

4,912

2,237

474

April

3,681

1,389

270

May

5,114

2,153

408

June

3,427

1,616

263

 

According to SAMA, as many as 727,000 mortgage contracts were signed between banks and retail clients in June 2024, a decline of 4% YoY.

 

New Residential Mortgages Contracts by Banks

Month

2023

2024

Change

January

11113

10505

(5%)

February

9574

9504

(1%)

March

9526

10320

+8%

April

5270

7085

+34%

May

8888

10123

+14%

June

7615

7274

(4%)

July

7058

--

--

August

9054

--

--

September

7767

--

--

October

9177

--

--

November

9164

--

--

December

8647

--

--

 

Financing firms provided new residential real estate loans worth SAR 160 million in June 2024, a decline of 19% YoY.

 

New Residential Mortgages by Financing Firms (SAR mln)*​

Month

2023

2024

Change

January

310

273

(12%)

February

284

268

(6%)

March

228

225

(1%)

April

167

143

(14%)

May

235

252

+7%

June

198

160

(19%)

July

193

--

--

August

307

--

--

September

265

--

--

October

289

--

--

November

310

--

--

December

272

--

--

*Interest not included.

 

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