Saudi Mortgages Jump in February Bucking Global Property Trepidation

Residential mortgages in Saudi Arabia increased by almost a third in February from a year earlier, according to new data from the Saudi Central Bank (SAMA). Around 26,800 new housing contracts were recorded in February 2021 – 28% more than February 2020 – reaching a value of more than SR14 billion (US$3.738 billion).

Banks arranged 97% of these mortgage contracts, while the rest were handled by financing companies, SAMA said. Residential villas accounted for nearly 80% of the new contracts, valued at around SR11.3 billion (US$3.017 billion). Apartments came second at 16%, and land purchases stood at 4%.

The COVID-19 pandemic has put pressure on the global housing market, as people delay big purchases because of worries about job security and financial stability. Still, pent up demand for new housing in the Kingdom is keeping the mortgage market buoyant. The data showed contracts from January to February reached 59,671 with a value of SR30.5 billion (US$8.143 billion) – representing growth of 20% compared to last year’s figures.