The economic studies unit at Al Iqtisadiya newspaper showed that the total value of mortgages offered by commercial banks reached 186.5 billion riyals by the end of 2015 compared to 159 billion riyals in 2014 rising by 17%.
The unit attributed the value growth to the rising demand for mortgages. The value of mortgages issued to commercial banks last year rose by 30% which is equivalent to 19.5 billion and represent around 71% of growth.
The value of mortgages issued from commercial banks represent around 29% of all mortgages rising by 8% which is equivalent to 7.9 billion to reach by the end of 2015 about 102.2 billion riyals compared to 94.2 last year.
The value of mortgages issued to companies represent 45% of all mortgages value compared to 41% in 2014.
Due to the current stagnation in the real estate market, the growth rate of individual mortgages slowed down to the lowest rate in six years. It’s worth mentioning that the economic index issued by the newspaper noted a remarkable drop in last year’s properties transactions by 22.5% standing at 384.4 billion riyals in 2015 compared to 449.7 billion riyals in 2014.