SAMA, 35% growth in residential new mortgages in January

SAMA, 35% growth in residential new mortgages in January

Residential new mortgage loans for individuals registered a new historical performance with increase of 32,811 contracts in January 2021. The total value of mortgages raised to SR16.4bn.

The number of new contracts has grown 35% and 60% in value comparing to January 2020; according to the monthly report issued by Saudi Central Bank (SAMA).

The mortgages provided by real estate financing institutions and banks last month increased 8% in contracts compared to December 2020 and 4% in value. SAMA report pointed out that mortgage loans in December 2020 recorded 30,520 contracts valued SR15.8bn.

SAMA report revealed that 98% of newly mortgages concluded through banks, while 2% of them through financing companies. In January 2021, 79% of the fund provided by banks and financing companies is for residential villas; apartments (15%), and lands (6%).

Mortgage in 2020 was an outstanding performance. It was 295,590 contracts with a value of SR140.7bn, which equal the four years (2019, 2018, 2017 and 2016).

In 2019 mortgage jumped 3 times in a historical performance with 179,217 contracts with a value of SR79,128bn; comparing to 2018 that recorded 50,496 contracts with value of 29.5bn.

In 2017 about 30,833 contracts with value of SR21,025bn, while 2016 was about 22,259 contracts worth SR17,096bn.