Real Estate

Saudi mortgage issuance reached two-year high in November

December 30, 2024, 6:18 PM

A street in Al Balad, Jeddah. 13,142 new residential mortgages were given by banks in Saudi Arabia in November

Apartment financing tops list
Value up by 51% from 2023
Number well below 2020 peak

The number of residential mortgages in Saudi Arabia reached its highest level since August 2022 in November, according to the latest figures from the Saudi Arabian Monetary Agency (Sama).

A total of 13,142 new residential mortgages were given by banks to individuals during the month with the value up by 51 percent year on year to SAR10.1 billion.

In the year to date almost SAR80 billion has been loaned by way of mortgages, up from the SAR78 billion throughout 2023.

However, it remains some way behind the high of SAR152.5 billion reported in 2021.

Finance for apartments has proven the most popular in 2024, with residential mortgages around SAR24.6 billion, surpassing the SAR20.2 billion issued last year with December’s figure still to be reported by Sama.

There have been 107,008 new mortgage approvals so far this year, above the 102,583 approved in 2023, as buyers battle back against rising interest rates.

The number is still well below the 2020 peak of 225,073.

Under Vision 2030, Saudi Arabia set a target to increase home ownership among the kingdom’s adult citizens to 60 percent by 2020 and to 70 percent by the end of the current decade – from 47 percent previously.

The government has revamped its mortgage laws and launched various financial schemes to help Saudis climb onto the property ladder. These initiatives sent mortgage approvals soaring and boosted banks’ earnings.

During the first half of the year, the total number of real estate transactions across all asset classes in Saudi Arabia was up by 38 percent to just over 106,700.

The total value of all deals grew by 50 percent to SAR127.3 billion over the same period, data from the consultancy Knight Frank Middle East showed.