RIYADH: Banks in Saudi Arabia granted SR60.92 billion ($16.24 billion) in residential mortgages in the first nine months of 2024, an annual rise of 4.88 percent.

The data was released by the Saudi Central Bank, also known as SAMA, and it showed the bulk of the loans — constituting 64 percent or SR38.85 billion — was allocated for house purchases.

This segment did witness a 3.38 percent dip year on year, with its proportion of total loans shrinking from the 69 percent seen during the same period of 2023.

Demand for apartments surged, capturing 31 percent of total mortgages, up from 25 percent a year ago, as this category of lending reached SR18.6 billion.

This shift represents a 26.8 percent growth, underscoring the increasing preference for apartment ownership amid urbanization and demographic changes.

Additionally, loans for land purchases showed a promising trajectory, achieving an annual growth rate of 8.26 percent and amounting to SR3.5 billion, which signals a sustained interest in land investment across the Kingdom.

The rise in new residential bank loans across Saudi Arabia is being driven by a blend of population growth, evolving mortgage policies, and increasing interest in apartment living.

According to a recent report from online real estate platform Sakan, the Kingdom’s population surged by four million over the past five years, with demand for housing climbing in response.

While this trend fuels the broader housing market, apartments have become a prominent focus, reflecting changing demographics and affordability needs.

The growth of the expatriate population, which expanded from 9.9 million in 2010 to 13.4 million in 2022 and now makes up over 40 percent of the population, also adds pressure on the rental market, particularly in major cities.

The government’s push for greater home ownership through buyer-friendly mortgage policies is helping fuel this apartment demand. 

Favorable mortgage options and the recent introduction of the Premium Residency Visa, often dubbed the “Saudi Green Card,” allow foreign investors to enter the market with purchases over SR4 million, fostering interest in upscale residential investments.

Additionally, the value proposition of apartments is clear, as with SR1 million, buyers can access apartment sizes that vary by city — for instance, around 131 sq. meters in North Riyadh to a more spacious 333 sq. meters in Dammam, according to the report.

Saudi Arabia’s liberalized foreign ownership policies and affordable mortgage terms further boost demand, particularly for apartments in desirable areas.

The high rental yields offered by apartments in Saudi Arabia also attract investors, with two- and three-bedroom apartments in Riyadh delivering yields of 9 to 10 percent, and even higher returns in Jeddah, where a two-bedroom unit yields 11.7 percent.

These returns are notably higher than apartment yields in neighboring Gulf cities, where they average between 5 to 6 percent in Dubai, Abu Dhabi, and Doha.

High rental yields not only make apartments attractive as long-term investments but also help offset rising property costs, driving both end-users and investors to favor this category in a market characterized by shifting residential preferences.

According to the report, the surge is also driven by the rapid evolution of real estate technology.

Platforms like Sakan are reshaping the real estate landscape by enhancing transparency, streamlining property transactions, and providing data-driven insights for buyers and investors alike.

Leveraging local knowledge and international expertise, these platforms are supporting the sector’s growth by simplifying access to property listings, improving market transparency, and facilitating faster transaction times.

As property technology continues to integrate into the Saudi market, it is poised to play a pivotal role in sustaining the momentum of residential lending and meeting the needs of a tech-savvy, expanding population.

LONDON: Progressive US Sen. Elizabeth Warren has criticized the Biden administration’s failure to punish Israel after Washington delivered an ultimatum last month on improving aid deliveries to Gaza.

The Democratic senator endorsed a joint resolution of disapproval in Congress after the State Department said it would not take punitive action against Israel, The Guardian reported.

Official Israeli figures show that the amount of aid reaching Gaza has dropped to the lowest level in 11 months, despite the White House’s 30-day ultimatum threatening the loss of military support to Israel if aid was not increased.

The deadline expired on Tuesday as international humanitarian groups warned that Israel had fallen far short of Washington’s stated aid targets. Food security experts also warned that famine is likely imminent in parts of Gaza.

The State Department claimed that Israel was making limited progress on aid and was not blocking relief, meaning it had not violated US law.

Warren, senator for Massachusetts, said in a statement: “On Oct. 13, the Biden administration told Prime Minister (Benjamin) Netanyahu that his government had 30 days to increase humanitarian aid into Gaza or face the consequences under US law, which would include cutting off military assistance.

“Thirty days later, the Biden administration acknowledged that Israel’s actions had not significantly expanded food, water and basic necessities for desperate Palestinian civilians.

“Despite Netanyahu’s failure to meet the United States’ demands, the Biden administration has taken no action to restrict the flow of offensive weapons.”

The joint resolution of disapproval endorsed by Warren can enable Congress to overturn decisions by the president, if passed by the House and Senate.

Bernie Sanders, the independent senator for Vermont, said next week he will bring new joint resolutions of disapproval to block specific weapon sales to Israel.

“There is no longer any doubt that Netanyahu’s extremist government is in clear violation of US and international law as it wages a barbaric war against the Palestinian people in Gaza,” he said.

On Thursday, 15 senators and 69 Congress members announced efforts to pressure the Biden administration to hold Israeli Cabinet members to account.

The plan targets Finance Minister Bezalel Smotrich and National Security Minister Itamar Ben-Gvir for the rise in Israeli settler violence, settlement-building and destabilization across the West Bank.

Warren described the Biden administration’s failure to hold Israel to account as a “grave mistake” that “undermines American credibility worldwide.”

She added: “If this administration will not act, Congress must step up to enforce US law and hold the Netanyahu government accountable through a joint resolution of disapproval.”