Saudi realty developers added 401,300 new residential units in 2017

Saudi real estate developers had built 401,300 new residential units throughout 2017, of which 105,070 units were developed in the fourth quarter alone, housing ministry data showed.

The ministry said in a report that the number of new units built in the first quarter of 2017 amounted to 100,990 units, against 100,990 units in Q2 -- 94,240 units in Q3 and 105,070 in Q4.

Data was based on electricity registration certificates issued by utility provider, Saudi Electricity Co.

Jeddah accounted for the highest number of new residential units develoepd during the year at 56,700 units, followed by Riyadh and Makkah at 51,700 and 38,200 units, respectively.

The report indicated that 13.38 percent (951,800 units) of total residental units in Saudi Arabia were vacant in December 2017, compared to 12.10 percent (812,300 units) in December 2016 – a normal increase given the high growth rate of supply, the report added.

Major cities, Riyadh and Jeddah, recorded high tenancy rates of 10.5 percent and 9.1 percent respectively.