Saudi Arabia’s banks issued SR91.1 billion ($24.28 billion) in new residential mortgages to individuals in 2024 — a 17 percent rise on the previous year, according to official data.

Figures from the Saudi Central Bank, also known as SAMA, show that this is the highest annual mortgage issuance in two years.

The fourth quarter of 2024 accounted for 33 percent of the total, likely coinciding with the declining interest rate environment. This trend underscores the strong demand for home financing in the Kingdom, as well as the impact of monetary policy shifts on borrowing costs.

The Kingdom is steadily progressing toward its goal of 70 percent home ownership by the end of the decade.

According to the latest official data from the Housing Program — an initiative under Vision 2030 — Saudi family home ownership reached 63.74 percent in 2023.

As economic diversification initiatives continue to boost housing development and home-ownership aspirations, the Kingdom’s mortgage landscape is expected to remain dynamic, influenced by both global and domestic trends.

The increase in residential mortgage issuance signals growing confidence in Saudi Arabia’s real estate market. With declining interest rates and ongoing government efforts to expand home ownership, the Kingdom’s housing sector appears poised for sustained growth in the years ahead.

Source: ARABNEWS