Mortgage in Saudi Arabia

Saudi mortgage activities achieved achievements despite the challenges.

In the Kingdom of Saudi Arabia, mortgage loans accounted for a good share of total loans granted, which rose 7.2 percent at the end of the third quarter or SR16.34 billion, bringing the total of mortgages to SR244.1 billion, With 58 percent of the total, while the value of mortgages granted to companies amounted to 96 billion riyals.

The weekly report of Al Mazaya Holding indicated that "loans for the restoration and improvement of real estate to more than 28 billion riyals, which are classified as consumer loans, reflect the pace and value of mortgage loans granted by banks and finance companies to the existence of mobility and real estate activity is accelerating, Available investment opportunities Considering that the partnership between the Ministry of Housing and the Real Estate Fund and the financing agencies created financing solutions for large segments of the waiting lists in the Kingdom.

He pointed out that mortgages have taken the pace of real estate activity and developments in the real estate products, the end of the main development and expansion from the beginning to the moment, as mortgages are experiencing continuous increases in most markets in the region and the world, regardless of the financial and economic conditions, as mortgages are consistent And the local demand by the end user at times and by the investment request seeking to obtain the appropriate financing against the provision of mortgages, whether land or other ready-made buildings at other times.

"Local, regional and international experiences have shown that mortgages have many advantages over the performance of the real estate sector in particular and other commercial and economic sectors because it is an acceptable guarantee by the banking sector and regulatory authorities for its ability to preserve asset values and the possibility of liquefaction and recovery While the region's markets are seeing more daily deals, indicating that the demand for real estate products is still in place and will have a positive impact on other economic sectors. "

The data showed that mortgage deals rose 53 percent to 12.36 thousand mortgages, despite the need for more new mechanisms and procedures to ensure the success of the real estate market and support the recovery, as it is not possible for banks and channels of funding to provide loans without the availability of guarantees The increase in the proportion of mortgages is a healthy indicator and gives the opportunity to continue to invest through flexible mortgage mechanisms and sophisticated and appropriate laws and legislation and supply and demand forces in the Saudi real estate market.

The report focused on the importance of the mortgage system in the Kingdom. The system aimed at finding solutions to many of the challenges and problems faced by the real estate market and the banking sector, in addition to balancing the supply and demand sides and spreading the culture of real estate finance as it protects the owner from arbitrariness when stumbling or As the system aims to increase the activities of real estate finance and achieve flexibility in the implementation of the executive procedures for mortgage property ».

"Despite the continued correction on the prices of real estate products, which were traded in the past at high prices are unjustified, and therefore the existing recession was a natural result of the large supply versus demand, in addition to the decision to impose charges on white land. "The Saudi real estate market is witnessing a further correction and will be heading towards more regulation in terms of buying and selling. The SAMA decision will raise the proportion of housing finance to 90 percent. The decision aims to support the growth of the real estate finance sector and facilitate citizens' .
(alhayat Newspaper)