Acquisition of houses for Haram expansion approved

Acquisition of houses for Haram expansion approved
Updated 03 August 2012

Acquisition of houses for Haram expansion approved

Acquisition of houses for Haram expansion approved

Government approval has been given for the expropriation of 2,000 properties in Makkah for the expansion project of the Grand Mosque’s northern courtyards.
The initial value for the expropriation project is estimated at SR 30 billion, which includes compensations, the building of train stations and parking, and developing the new Grand Mosque endowment.
Abbas Qattan, supervisor of the committee for the Grand Mosque’s northern courtyards’ development, told Al-Eqtisadiya newspaper that the committee is examining the ownerships of the properties, after which a government committee, comprising the Ministry of Finance, the Makkah governorate and mayor’s office, Ministry of Justice and two members from the private sector, will start appraisal procedures. The expropriation includes six areas neighboring the mosque.
He said the areas to be expropriated would stop receiving services and power by January 2013.
Alshareef Mansour Abu Raiysh, chairman of the real estate committee at the Makkah Chamber of Commerce and Industry, said that this will be the second largest expropriation for the expansion project.
He said the government committee will examine each property and determine a just price for each. The price will be based on the property’s market value, he said.
The projects being executed currently within the expansion project will enable people to reach the mosque easily through tunnels that will separate pedestrians and vehicles.
Past compensation appraisals were made in coordination with owners, he said, adding that they considered the property space, proximity to the Grand Mosque and main streets. Some properties were located in mountainous areas.
Raiysh said 97 percent of owners were satisfied with the estimation of their properties’ value. A few had objections and filed cases with the Board of Grievances, though all were dismissed after the court found the assessments of their values were adequate.
He added that the expansion project has created a boom in the real estate market in Makkah and caused a rise in prices due to the large amounts disbursed to owners of expropriated property.