The latest data released by the Electricity Company at the end of 2014 revealed that the number of new residential units connected to electricity service increased to about 405.1 thousand new residential units, the actual figure is higher than the estimated figure by 19.The estimated figure for 2014 was 340.4 thousand housing units, bringing the total number of housing units supplied with electricity by the end of 2014 to about 6.1 million housing units, of which 5.4 million were inhabited (Saudi, non-Saudi), in various regions of the Kingdom.

The number of housing units supplied with electricity by the end of 2014 increased to about 405.1 thousand new housing units, which is higher than the estimated figure by 19.0 percent.

Vacant housing units

At the end of 2014, the number of vacant housing units reached more than 703 thousand vacant housing units, or 12.This explains to a large extent the increase in offers for the sale of housing units in various cities and governorates, which are not matched by real purchases from members of society due to the high and exaggerated prices, even with the slight decreases in the prices of these new housing units by percentages ranging between 9.0 and 20.0 percent, but they are still at exaggerated levels and far from the real purchasing power of individuals.

The number of vacant housing units reached by the end of 2014 exceeded 703 thousand housing units, which means that 12% of the housing units are vacant, very distant from the real purchasing power of individuals.

Data Continues

Future estimates, assuming the above real variables continue at their current pace of growth, indicate that the excess supply of new housing for the next five years could rise to more than 1.7 million new housing units by the end of 2019, or 22 percent of existing housing units at that date (more than one-fifth of existing housing units would be vacant).

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This real data and its future estimates reveal the falsity of the misleading expectations issued from time to time by real estate sources and development companies, which always promote the need to construct and build at least 500 thousand housing units annually for the next five years, or more than 2.Therefore, the highest degree of caution and caution must be taken by the concerned government agencies towards these misleading marketing reports, which ignore the core of the housing crisis in our country, which comes mostly from the very large inflation in real estate and land prices! It is the most important and largest reason behind the fabrication of the housing crisis in the form it has reached at the present time.

White Land Fees

From all these data, the importance of accelerating the implementation of the decisions, measures and procedures taken by the government in recent months, perhaps the most important of which is the approval of imposing fees on white lands within the urban area of cities and governorates, which, in addition to other reforms taken by the government, will contribute to correcting the inflated price levels in the real estate market, which is behind the current housing crisis.

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Real estate market stagnation

T Emphasizing the dominance of the recession in the performance of the local real estate market, the indicators of the decline in real estate sales of various types continued, ending its twenty-first consecutive week of stagnation in its activities, as residential real estate sales witnessed a weekly decline of 3.5 percent, to record a decline from about 4910 properties sold during the previous week, to about 4737 properties sold by the end of last week, the decline included all types of real estate in percentages ranging from 54.8 percent as the highest percentage of decline for agricultural lands, and only 0.2 percent as the lowest percentage of decline for houses, and the property of buildings was an exception to these weekly declines, as it recorded a weekly growth of 28.4 percent.