Saudi retail mortgage loans surge 173% in 2019: SAMA

The mortgage loans provided to retail clients by banks in Saudi Arabia surged 173% year-on-year (YoY) to SAR 73.86 billion by the end of 2019, data issued by the Saudi Arabian Monetary Authority (SAMA) showed.

New Retail Housing Loans (SAR bln)*
Period	Value	Variation
2016	14.93	--
2017	18.92	+27%
2018	27.01	+43%
2019	73.86	+173%

*Does not include interest

In Q4 2019, mortgage loans also soared 173% YoY to SAR 26.5 billion.

New Retail Housing Loans (SAR mln)*
Period	2018	2019	Variation
Q1	5,968	13,854	+132%
Q2	5,690	15,273	+168%
Q3	5,650	18,223	+223%
Q4	9,707	26,508	+173%
Total	27,015	73,858	+173%

*Does not include interest

Villa mortgages accounted for 81%, or SAR 59.6 billion of total housing loans provided last year.

Apartments and land plots followed with SAR 8.86 billion and SAR 5.41 billion, respectively.

New Retail Housing Loans by Product Type (SAR mln)*
Period	Villas	Apartments	Land
Q1	11,174	1,577	1,103
Q2	12,341	1,770	1,162
Q3	14,624	2,171	1,428
Q4	21,451	3,340	1,718
Total	59,590	8,858	5,411

*Does not include interest

A total of 170,300 contracts were signed between banks and retail clients in 2019, a rise of 263% YoY.

Number of New Retail Housing Loans Contracts By Banks
Period	Contracts (‘000 contracts)	Variation
2016	20.1	--
2017	28.4	+41%
2018	46.9	+65%
2019	170.3	+263%

Meanwhile, these contracts rose by 248% YoY to 63,000 in the fourth quarter of 2019.

Number of New Retail Housing Loans Contracts By Banks
Period	2018	2019	Variation
Q1	9,228	29,617	+221%
Q2	9,276	34,905	+276%
Q3	10,263	42,788	+317%
Q4	18,118	62,965	+248%
Total	46,885	170,275	+263%

Financing firms provided new mortgages for residential units worth SAR 5.27 billion in 2019, an increase of 112% YoY.

SAMA issued new directives in May 2018 obligating all banks and mortgage companies to provide mortgages to individuals, as per the due regulations.

Number of New Retail Housing Loans Contracts by Financing Companies (SAR mln)*
Period	2018	2019	Variation
Q1	438	1,093	+150%
Q2	650	1,161	+79%
Q3	532	1,337	+151%
Q4	868	1,679	+93%
Total	2,488	5,270	+112%

*Does not include interest

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