The volume of mortgage loans provided to individuals exceeded the growth by 3 times compared to February of last year, and the rate of increase in the number of financing contracts provided to individuals during this month reached more than 210%, compared to the same month last year. p>
February of 2019 witnessed the signing of 9736 new financing contracts, with a value exceeding 4.6 billion riyals, compared to 3143 financing contracts, with a value of 2.079 billion riyals, all provided by banks and financing companies.
The government has directed during the last period to activate housing finance contracts submitted to individuals with the support of the state, as last February achieved an increase of 1.7% compared to January of the same year, and the Ministry of Housing launched a specialized government program during the last period To provide housing options for citizens, including facilitating the process of obtaining financing with the support of the state, by providing support to citizens by bearing profits on real estate loans, to contribute to raising the ownership percentage to 70% by 2030.
According to a report released today by the Saudi Arabian Monetary Agency, the real estate financing provided to individuals during the month of February recorded a record increase in the volume of financing by about 121 percent, compared to the same month in the previous year 2018 AD, thus bringing the total amount of financing The real estate provided by Saudi banks and other financing companies, since the beginning of 2019, during the last January and February, about 9.4 billion riyals, with a total number of 19,314 financing contracts, which is equivalent to the total of the real estate financing that was provided during the first half of last year 2018 AD, as it reached Contracts to about 20,059 financing contracts.
This represents the number of contracts supported by housing support programs provided by the Ministry of Housing or the Real Estate Development Fund during February 2019 about 84% of the total number of contracts concluded, including up to 8,135 financing contracts, and about 77% Of the value of the financing was through housing support programs, representing about 3.6 billion riyals. This recorded a growth rate of more than 1%, compared to the previous month, January 2019, which witnessed the presentation of financing contracts supported by the Ministry, which exceeded 3.58 billion riyals.
SAMA data showed that about 92 percent of real estate loans were provided through commercial banks, as the number reached 9049 loans, while the share of financing institutions represents up to 8 percent with a number of contracts of up to 687, while the number of real estate financing contracts for individuals in February 2018 submitted by banks and other financing institutions was 3,143 financing contracts, of which 2959 were contracts from banks and 184 from financing companies with a total value of 2.079 billion riyals.
It is noteworthy that the Monetary Agency has indicated through its previous reports that the total number of residential real estate financing contracts submitted to individuals amounted to 20.132 contracts in 2016, amounting to 14.9 billion riyals, and in 2017, approximately 28.469 contracts valued at 18.9 billion riyals, and in 2018 AD The total number of contracts reached 46,885 contracts.
