Mecca property sales quadruple in 2013

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MeccaSales values and volumes have risen by up to four times in the holy city of Mecca within 2013, even though land prices are claimed to be the highest in the world. Real estate sales in and around the Muslim holy city of Mecca (Makkah) have risen almost four times over the last year, says the local real estate committee.

Sale values in the region in 2013 rose from $15.84 billion, compared with just $4.29 billion in 2012. Volumes increased by an even higher percentage, up from 4,677 in 2012 to 17,920 last year, Saudi Arabian media reported. And market experts believe that sales will continue to perform strongly in 2014, due to the number of projects due to be completed and improving infrastructure in the city.

Real Estate Committee at Makkah Chamber of Commerce and Industry Mansour Abu Al Reesh says sales could reach more than $21 billion.

“Investment infrastructure in the holy city has become attractive to more and more investors who recently moved to establish large investment portfolios in building large residential projects, such as hotels and residential towers,” he told the Arab News Service.

Developer Meshal Al Zaiydi says the property sector will benefit from the state’s increased expenditure on development projects.

“The construction of quality hotels and the other residential projects will increase the capacity of the city to accommodate more numbers of Umrah and other seasonal pilgrims,” he says. Most investors are expected to buy new properties.

Real estate expert Marie bin Mubarak bin Mahfooz say real estate prices will spike this year because of the increasing demand on lands and properties.

Chiheb Ben Mahmoud, head of hotels and hospitality in the Middle East for global agent Jones Lang LaSalle’s says Saudi Arabia’s $21 billion redevelopment of the Grand Mosque – Islam’s holiest mosque – and surrounding areas, is behind the resurgence. Global real estate advisory firm Alpha1Estates International says its real estate index for Mecca and Madinah nearly doubled in 2013.

The Ihsan Al Haramain Index, the first index to solely track Saudi-listed companies involved in real estate development in Mecca and Madinah, shows the double-digit growth in stock prices real estate developers in the Holy Cities. The Ihsan al-Haramain Index jumped by 47 per cent this year, nearly double its 26 per cent performance in 2012.

Land prices in the Holy Cities are the most expensive in the world, ranging from between $133,000 and $400,000 in 2012 in Mecca to possibly hit $533,240 in 2013, whilst in Madinah’s central area, The price per square meter in the Central Area has reached $72,000.

Alpha1Estates has proposed five critical pieces of legislation that focus on globalising the sector to non-Saudi Muslims. The agency launched in 2006 and was the world’s first company to market Saudi Arabian property globally and to market property in both Mecca and Madinah. It subsequently launched the world’s first bespoke real estate consultancy programme and joint-investment fund focused on the holy cities.

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Reading Time: 2 minutes

Sales values and volumes have risen by up to four times in the holy city of Mecca within 2013, even though land prices are claimed to be the highest in the world. Real estate sales in and around the Muslim holy city of Mecca (Makkah) have risen almost four times over the last year, says the local real estate committee.

Reading Time: 2 minutes

MeccaSales values and volumes have risen by up to four times in the holy city of Mecca within 2013, even though land prices are claimed to be the highest in the world. Real estate sales in and around the Muslim holy city of Mecca (Makkah) have risen almost four times over the last year, says the local real estate committee.

Sale values in the region in 2013 rose from $15.84 billion, compared with just $4.29 billion in 2012. Volumes increased by an even higher percentage, up from 4,677 in 2012 to 17,920 last year, Saudi Arabian media reported. And market experts believe that sales will continue to perform strongly in 2014, due to the number of projects due to be completed and improving infrastructure in the city.

Real Estate Committee at Makkah Chamber of Commerce and Industry Mansour Abu Al Reesh says sales could reach more than $21 billion.

“Investment infrastructure in the holy city has become attractive to more and more investors who recently moved to establish large investment portfolios in building large residential projects, such as hotels and residential towers,” he told the Arab News Service.

Developer Meshal Al Zaiydi says the property sector will benefit from the state’s increased expenditure on development projects.

“The construction of quality hotels and the other residential projects will increase the capacity of the city to accommodate more numbers of Umrah and other seasonal pilgrims,” he says. Most investors are expected to buy new properties.

Real estate expert Marie bin Mubarak bin Mahfooz say real estate prices will spike this year because of the increasing demand on lands and properties.

Chiheb Ben Mahmoud, head of hotels and hospitality in the Middle East for global agent Jones Lang LaSalle’s says Saudi Arabia’s $21 billion redevelopment of the Grand Mosque – Islam’s holiest mosque – and surrounding areas, is behind the resurgence. Global real estate advisory firm Alpha1Estates International says its real estate index for Mecca and Madinah nearly doubled in 2013.

The Ihsan Al Haramain Index, the first index to solely track Saudi-listed companies involved in real estate development in Mecca and Madinah, shows the double-digit growth in stock prices real estate developers in the Holy Cities. The Ihsan al-Haramain Index jumped by 47 per cent this year, nearly double its 26 per cent performance in 2012.

Land prices in the Holy Cities are the most expensive in the world, ranging from between $133,000 and $400,000 in 2012 in Mecca to possibly hit $533,240 in 2013, whilst in Madinah’s central area, The price per square meter in the Central Area has reached $72,000.

Alpha1Estates has proposed five critical pieces of legislation that focus on globalising the sector to non-Saudi Muslims. The agency launched in 2006 and was the world’s first company to market Saudi Arabian property globally and to market property in both Mecca and Madinah. It subsequently launched the world’s first bespoke real estate consultancy programme and joint-investment fund focused on the holy cities.

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