JEDDAH: Real estate agents have estimated the value of property damaged by last November’s floods in east Jeddah at more than SR100 million and said property prices have dropped drastically in areas worst hit by the disaster.

“Residents of the eastern Al-Harazat district are considering selling their homes and moving elsewhere to protect their lives and investments,” they said.

Worried disaster may strike again, residents of the city’s eastern districts are considering selling their homes, estate agents said. They add that there are no buyers as the areas are low-lying and have been built in the path of floodwaters.

Omar Al-Ghamdi, a resident of Al-Harazat, said the walls of the courtyard of his house collapsed and the floor sank following the floods. “The house is no longer inhabitable. It can’t be repaired; I really don’t think anyone would want to buy it,” he said.

Al-Ghamdi does not think people would want to buy property in those areas that have been affected by the floods “because these are areas under the constant threat of floods.”

Estate agent Ibrahim Musa said many homes and empty plots of land were damaged in the floods. “We’re not getting buyers nowadays, especially since there is talk that all homes built in valleys prone to floods are to be knocked down,” he said.

Musa said the current price of a 750 square meter piece of land in the Al-Harazat district was SR45,000 while the price of similar plots close to the main roads might reach SR300,000. “Prices fell dramatically after the floods. We have not seen a single buyer for a month,” he said.

Hamad Al-Mitairi, who owns a real estate agency, said buyers are now preferring homes and land in the north of the city away from flood-prone areas. “The prices are high in areas that are at an elevation and where the chances of inundation in the event of rains are low. On the other hand, prices are down in low-lying areas,” he said.

Al-Mitairi believes property sales in flood-affected areas are likely to be on hold until all related issues are resolved. “Once these are sorted out, it would be possible to restructure the areas and make them attractive to prospective buyers,” he said.

Abdullah Al-Ahmari, a real estate evaluator at the Jeddah Chamber of Commerce and Industry, attributed the high price of real estate in the city to a number of reasons, including speculation, new projects and opportunistic investors who inflate prices after tragedies. He added that prices have increased in the north of the city due to residents of the city’s eastern districts opting to leave and move north.

Khalifa Abbat Allah, a Saudi, said he owns a piece of land in Al-Riyadh district near the equestrian club that he bought a few years ago for SR60,000. “As many people now want to leave the eastern district for areas where floods are less likely, I was offered SR200,000 for this piece of land but I’m still looking for a better price,” he said.