Riyadh, The monthly report issued by Saudi Arabian Monetary Authority (SAMA) revealed today that the volume of new residential mortgage for individuals provided by commercial banks and financing institutions continued to grow in May 2019. The number of mortgage contracts reach 12,949 contracts last month with 212% growth. The total value of these loans is SR 5,653 billion, with growth rate of more than 122% year-on-year.
SAMA pointed out that the total number of mortgage provided since the beginning of 2019 to the end of May is 58,809 contract worth SR 27,019 billion, compared to about 18 thousand contract with value of 11,680 billion during the same period last year.
The report explained that the continued growth of residential loans achieved last month 223% in the number of contracts and about 131% in the volume of loans compared to the same period in 2018, supported by government housing programs.
SAMA report emphasized that the increase in the number of contracts in May 2019 is exceeded 8 thousand contracts with total 12,949 contract by comparing to May 2018, with 4,148 contracts. The volume of mortgage in May 2019 is also increased by more than 3 billion Riyals compared to May 2018 with SR 2,539 billion.
According to SAMA report, about 92% of the value of mortgage contracts for individuals in May 2019 were provided by commercial banks, while about 8% of them by other financial companies.
The number of subsidized contracts supported by "Sakani" in May 2019 reached 11,163 contracts, with value of SR 4.6 billion. Housing programs accounted for 86% of the total number of contracts and about 81% of the value of mortgage in May 2019
In its previous reports this year, "SAMA" indicated that real estate loans had jumped more than three times since last year. The total number of mortgage contracts offered to individuals in January was 9,578, compared to 2,674 in January 2018. In February 2019 9,736 contracts compared to 3,143 contracts in February 2018. In March 2019 reac2,148 contracts compared to 3,973 in the same month of last year. In April, there were 14,398 mortgage contracts with a total value exceeded SR 6.4 billion. It was the highest in the history of Saudi banks, compared to 4,286 contracts in April 2018.
While the total number of residential mortgage contracts offered to individuals by the end of 2018 amounted 50,496 contracts with value of SR 29.5 billion, and in 2017 about 30,833 contracts with value of 21,025 billion Riyals, while 2016 was about 22,259 mortgage contracts worth 17,096 billion.
Source: Saudi Press Agency