Residential mortgages to individuals drop 41% to SAR 5.84 bln in September

05/11/2023 Argaam Special
Saudi Arabian banknotes

Saudi Arabian banknotes


Residential mortgages provided by banks to individuals fell by 41% year-on-year (YoY) to SAR 5.84 billion in September, data issued by the Saudi Central Bank (SAMA) showed.

 

Compared to August, residential mortgages retreated by nearly SAR 1.31 billion, or 18%.

 

Residential Mortgages from Banks to Individuals (SAR mln)*

Month

2022

2023

Change

January

12151

8373

(31%)

February

8784

7138

(19%)

March

15276

7251

(53%)

April

9219

4146

(55%)

May

8810

6801

(23%)

June

13122

5969

(55%)

July

7189

5425

(25%)

August

12697

7142

(44%)

September

9930

5837

(41%)

October

9352

--

--

November

7386

--

--

December

6359

--

--

*Doesn’t include interest.

 

 

Villa mortgages accounted for the largest share of the total bank financing provided in September, reaching 68%, or SAR 3.98 billion. Apartments and land plots followed with SAR 1.56 billion and SAR 297 million, respectively.

 

New Mortgages by Product Type (SAR mln)*

Period

Villas

Apartments

Lands

January 2023

5645

2315

413

February

4964

1823

351

March

5048

1745

457

April

2781

1050

314

May

4684

1734

383

June

4244

1429

297

July

3897

1226

301

August

4967

1776

399

September

3978

1563

297

*Doesn’t include interest.

 

According to SAMA, nearly 7,770 contracts were signed between banks and retail clients in September, a drop of 40% YoY.

 

Number of New Residential Mortgage Contracts by Banks*

Month

2022

2023

Change

January

16442

11113

(32%)

February

11615

9574

(18%)

March

18999

9526

(50%)

April

11255

5270

(53%)

May

10943

8888

(19%)

June

16487

7615

(54%)

July

9047

7058

(22%)

August

16255

9054

(44%)

September

12902

7767

(40%)

October

12397

--

--

November

9785

--

--

December

8265

--

--

*Doesn’t include interest

 

The real estate mortgage provided by finance firms for individuals dropped by 13% YoY to SAR 265 million in September.

 

Number of New Residential Mortgage Contracts by Finance Firms (SAR mln)*

Month

2022

2023

Change

January

264

310

+18%

February

221

284

+29%

March

304

228

(25%)

April

211

167

(21%)

May

148

235

+59%

June

351

198

(44%)

July

167

193

+16%

August

284

307

+8%

September

305

265

(13%)

October

280

--

--

November

271

--

--

December

280

--

--

*Doesn’t include interest.
 

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