Saudi Arabian banknotes
Residential real estate finance provided for individuals by banks in Saudi Arabia fell by 21% year-on-year (YoY) to SAR 120.3 billion in 2022, data issued by the Saudi Central Bank (SAMA) showed.
This is the first annual decline in new residential real estate financing provided to individuals by banks since the publication of the data.
The following is the volume of financing provided since 2016:
|
New Retail Residential Real Estate Finance (SAR bln)* |
||
|
Period |
Value |
Change |
|
2016 |
14.93 |
-- |
|
2017 |
18.92 |
27% |
|
2018 |
27.74 |
47% |
|
2019 |
78.96 |
185% |
|
2020 |
150.79 |
91% |
|
2021 |
152.54 |
1% |
|
2022 |
120.27 |
(21%) |
On a monthly basis, new residential real estate finance provided to individuals by banks recorded a YoY decrease during all months of 2022 except for June, which saw an increase of 58%.
Data indicated that the steepest decline in the volume of financing was in December by 50% to reach SAR 6.36 billion, as shown in the following table:
|
New Retail Residential Real Estate Finance (SAR mln)* |
|||
|
Month |
2021 |
2022 |
Change |
|
January |
16,829 |
12,151 |
(28%) |
|
February |
14,181 |
8,784 |
(38%) |
|
March |
18,040 |
15,276 |
(15%) |
|
April |
15,595 |
9,219 |
(41%) |
|
May |
8,906 |
8,810 |
(1%) |
|
June |
8,322 |
13,122 |
+58% |
|
July |
9,381 |
7,189 |
(23%) |
|
August |
12,736 |
12,697 |
(0.3%) |
|
September |
12,036 |
9,930 |
(18%) |
|
October |
12,139 |
9,352 |
(23%) |
|
November |
11,773 |
7,386 |
(37%) |
|
December |
12,602 |
6,359 |
(50%) |
Villa mortgages accounted for 70%, or SAR 83.97 billion, of total housing loans provided in 2022. Apartments and land plots followed with SAR 27.24 billion and SAR 9.07 billion, respectively.
|
New Real Estate Finance by Product Type (SAR mln)* |
|||
|
Period |
Villas |
Apartments |
Land |
|
January 2022 |
9,403 |
2,106 |
642 |
|
February |
6,818 |
1,498 |
468 |
|
March |
9,224 |
2,956 |
3096 |
|
April |
5,902 |
1,707 |
1610 |
|
May |
6,785 |
1,605 |
420 |
|
June |
9,415 |
3,167 |
540 |
|
July |
5,392 |
1,514 |
283 |
|
August |
8,607 |
3,618 |
472 |
|
September |
6,708 |
2,825 |
396 |
|
October |
6,190 |
2,717 |
445 |
|
November |
5,127 |
1,879 |
380 |
|
December |
4,397 |
1,648 |
313 |
|
Total |
83,968 |
27,240 |
9,065 |
According to SAMA, 154,400 contracts were signed between banks and retail clients in 2022, a decline of 23% YoY.
|
Number of New Real Estate Finance Contracts by Banks* |
|||
|
Month |
2021 |
2022 |
Change |
|
January |
23,298 |
16,442 |
(29%) |
|
February |
18,989 |
11,615 |
(39%) |
|
March |
23,380 |
18,999 |
(19%) |
|
April |
19,889 |
11,255 |
(43%) |
|
May |
11,495 |
10,943 |
(5%) |
|
June |
11,309 |
16,487 |
+46% |
|
July |
12,809 |
9,047 |
(29%) |
|
August |
17,143 |
16,255 |
(5%) |
|
September |
15,453 |
12,902 |
(17%) |
|
October |
16,223 |
12,397 |
(24%) |
|
November |
15,406 |
9,785 |
(36%) |
|
December |
16,087 |
8,265 |
(49%) |
|
Total |
201,481 |
154,392 |
(23%) |
Financing firms provided new real estate loans worth SAR 3.1 billion in 2022, a decline of 18% YoY.
|
New Real Residential Estate Finance Contracts by Financing Firms (SAR bln)* |
||
|
Period |
Value |
Change |
|
2016 |
2,166 |
-- |
|
2017 |
2,102 |
(3 %) |
|
2018 |
2,461 |
17 % |
|
2019 |
5,287 |
115 % |
|
2020 |
4,592 |
(13 %) |
|
2021 |
3,767 |
(18 %) |
|
2022 |
3,086 |
(18 %) |
Monthly, new residential real estate finance provided to individuals by financing firms recorded a YoY decrease in nine months, led by February and May, by 42% each. However, funding increased in three months, topped by June, at 82%, as shown in the table below:
|
New Real Residential Estate Finance Contracts by Financing Firms (SAR mln) |
|||
|
Month |
2021 |
2022 |
Change |
|
January |
391 |
264 |
(32%) |
|
February |
382 |
221 |
(42%) |
|
March |
515 |
304 |
(41%) |
|
April |
343 |
211 |
(38%) |
|
May |
254 |
148 |
(42%) |
|
June |
193 |
351 |
+82% |
|
July |
191 |
167 |
(13%) |
|
August |
337 |
284 |
(16%) |
|
September |
350 |
305 |
(13%) |
|
October |
287 |
280 |
(2%) |
|
November |
264 |
271 |
+3% |
|
December |
260 |
280 |
+8% |
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