Saudi Arabia’s real estate loans have surged to $235.54 billion, increasing 15.12% year-on-year. Corporate loans grew by 26.23%, contributing to the expansion fueled by confidence in the market. The trend highlights shifting dynamics with institutional investment and challenges concerning affordability in the rapidly evolving property landscape, particularly in urban areas.
Recent data from Saudi Arabia’s central bank, SAMA, illustrates a notable increase in the Kingdom’s real estate loans, rising 15.12 percent year on year to reach SR883.3 billion ($235.54 billion) by the end of 2024. This growth reflects heightened demand from both retail and corporate borrowers, with corporate real estate loans experiencing a notable jump of 26.23 percent to SR202.04 billion.
In summary, Saudi Arabia’s real estate sector is undergoing significant transformation, characterized by substantial growth driven by both retail and corporate lending. The government’s strategic initiatives under Vision 2030, combined with changing demand dynamics, illustrate the evolving landscape of the Kingdom’s property market. Moving forward, effective responses to rising prices and interest rates will be essential to ensure sustainable growth, keeping accessibility in mind for average buyers.
Original Source: www.arabnews.com
