“The decision will not only boost confidence but also reassure citizens about the real position of over 100,000 plots of land spread over various settlements in the north of the city. This positive step would have a number of advantages as far as owners as well as tenants are concerned,” said one real estate agent.

“These include transparency with regard to the position of their properties … in addition to the planning of settlements in a way that increases their market value on the long run,” he added.

Abdul Rahman Al-Mohaideb, a real estate investor, said that the municipality’s decision would have a positive impact, especially on the long run. “These settlements in the north of Jeddah would draw the attention of all people who are concerned with real estate. They are quite affordable and attractive for middle income people, especially in view of their excellent geographic position,” he said.

He added that there are over 100,000 plots of land in various settlements toward the north of Jeddah.

“If the municipality enforces its decision of setting aside 7,253 plots of land to construct flood passages, then this would increase confidence among people who want to build homes in these areas,” said Al-Mohaideb, while urging the municipal authorities to pay compensation to owners of land situated along the flood routes.

Talal Khalil, executive chairman of Talal Khalil Real Estate Group, said the municipality’s decision would help regulate and reorganize the position of settlements in the region as a whole. “This would boost the confidence of local residents by removing confusion with regard to the real position of properties in addition to increasing the prices of real estate,” he said.

Echoing Al-Mohaideb’s view, Khalil said that the municipality’s action would expedite the implementation of basic utility services to various new settlements in the north of Jeddah. “There are talks about plans to make available services to the region in the near future. Many areas have been connected to the electricity grid and that is a good signal,” he said.

The municipality has also stopped issuing building permits in settlements situated along flood routes.