Experts in the realty sector have called for measures to check the ‘unjustified’ skyrocketing of property prices by as much as 40 percent in parts of Madinah.

Ahmed Al-Dibaikhi, board chairman of Ahmed Al-Dibaikhi for Real Estate Investment, cited by local media, said the recent announcement of developmental projects in the city, including the expansion of the Prophet’s Mosque, will provide more liquidity since owners of expropriated properties will be paid compensation.

The liquidity will push demand for land and properties to levels higher than available resources, narrow housing plans, and lack of other investment avenues coupled with easy speculative dealings in real estate and low risk associated with it, he said.

Al-Dibaikhi suggested a series of solutions to address the problem, including the Ministry of Municipal and Rural Affairs reconsidering the urban range of the city to cope with population growth.

Besides, the city development authority should quickly approve white (vacant) lands located within the city or adjacent to the existing housing units, he said.

He said real estate developers should also be encouraged to enter into different types of property investments and that license procedures be eased.

The development authority should also promptly uncover its developmental and regulatory plans, which would remove any skepticism among investors and dealers arising out of possible rumors, which are, in some cases, the major cause of high prices in some parts of the city, he said.

The property expert called on the Ministry of Housing to make its housing projects a reality, whereby citizens would feel secure on the possibility of having a house.

A’id Al-Sinani, an accredited property dealer, said the expansion of the Prophet’s Mosque will generate enormous liquidity among owners of expropriated properties. The liquidity can be expected to be pumped into real estate which would push prices considerably.

He also suggested some measures to curb land and property price hikes including construction of thousands of housing units for citizens, and conclusion of deals with global companies from China, South Korea and Japan for development of land and construction of housing units.

Sub-contracting of deals, especially with national companies who usually delay implementation of such projects, should be avoided, Al-Sinani said.

Ismail Khalid, another property dealer, also gave similar suggestions to curb the increase in land prices, including distribution of lands within the city and re-planning of the vacant (white) lands as quickly as possible.