According to new data released by the Saudi Central Bank (SAMA), mortgage loans supplied by Saudi Arabia’s commercial banks to retail and business clients increased by 27% in the second quarter to SAR 638.26 billion ($170 billion), from SAR 502.73 billion a year earlier.
However, new residential retail mortgages in July fell by more than 23% to SAR 7.18 billion from SAR 9.38 billion in the same period last year. Month-on-month, retail mortgages fell 45% from SAR 13.12 billion in June.
Saudi Arabia has pushed home ownership as part of its Vision 2030 strategy and retail mortgages have jumped as the government expanded the number of lenders. According to government figures, the percentage of Saudi homeowners jumped to 62% from 47% between 2016 and 2020. The objective is to hit 70% by 2030.
The availability of competitive mortgage rates has aided the campaign through programmes like Wafi, an off-plan sales and rent scheme, and Sakani, a home ownership initiative.
