RIYADH: According to official figures, real estate loans from Saudi banks jumped to a record SR846.48 billion ($225.73 billion) in the third quarter of 2024, representing a 13.29 percent yearly rise.
According to data from the Saudi Central Bank, or SAMA, retail and business lending were the main drivers of this expansion. Business loans increased by 22% to SR189.6 billion.
Lending to individuals accounted for the majority, at SR656.88 billion, or 78 percent of the total, with an annual growth rate of 11.02 percent.
By the end of the third quarter, Saudi banks’ overall loan portfolio, valued at SR2.85 trillion, consisted of 29.67 percent real estate loans.
Government-backed programs under Vision 2030, which seek to diversify the economy and meet the Kingdom’s rising housing demand, are the foundation of the sector’s extraordinary growth.
The Saudi Central Bank raised the maximum loan-to-value ratio for first-time homeowners from 85% to 90% in 2018, marking a significant regulatory milestone.
This calculated action was intended to boost mortgage lending, increase the number of Saudi nationals who may become homeowners, and support the Kingdom’s larger economic reform initiatives.
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