DUBAI: New Saudi property loans increased by more than a third in comparison to a year before as per the latest data from the Saudi Central Bank (SAMA).
Homebuyers shrugged off negative economic sentiment to come up with homes as per repressed demand for new properties helped up the number of loan contracts by about 33,000 – costing some SR16.4 billion ($4.4 billion).
Some 98 percent of the contracts were arranged through banks with the left 2 percent sold by financing companies, SAMA provided in a line by SPA.
Property markets all over the world have been clattered by the coronavirus pandemic as people have held back from performing too big acquired because of fears over their job security. The kingdom’s residential real estate market has resisted that increases trend because of strong underlying demand and the relatively recent arrival of a structured loan market.
Nearly 80 percent of the loans that are provided in the Kingdom go towards villas.
Previous year the Saudi government detached 15 percent of the cost added tax on real estate deals to help counter the effect of the COVID-19 pandemic.
That supported the real estate costs in main property markets including Riyadh and Jeddah.
Residential deal costs in Riyadh recorded a yearly rise of 2 percent for apartments and villas the previous year as per the data from JLL, the international property broker.