MAKKAH: Having incurred huge losses during the just concluded Haj and Umrah season because of the lower number of pilgrims due to swine-flu concerns, investors who utilize temporary housing to sublet to pilgrims are considering shifting their business to permanent accommodations.
Realtors told Arab News that the sector of permanent housing and land plots were saved from the crisis.
“These are the areas that can compensate the realtors for the losses they suffered during the past Haj season,” one of the realtors said, adding that the next phase would constitute an opportunity for investors to enter into diversified investment projects that would meet the demands of the Makkah residents.
The realtors expected the prices of the seasonal housing projects, particularly the buildings rented for the accommodation of pilgrims, to go down sharply. They said there would be much room for negotiation between landlords and the heads of Haj missions from various countries to get the lowest prices and to choose the houses closest to the Grand Mosque.
Bandar Al-Humaidah, member of the Real Estate Commission at the Makkah Chamber of Commerce and Industry said realtors are leaning toward permanent housing projects in the coming phase after the bitter experience of the last Haj season. “The quest for permanent housing projects has increased the prices of land plots by up to 20 percent,” he said.
He said the real estate prices have gone up because of the little space available in Makkah for permanent housing projects.
“The demand for areas to be used for temporary accommodation of pilgrims and hotels has shifted toward plots of land suitable for permanent housing projects,” he said.
Al-Humaidah said many investors who bought pieces of land during the past two years were keeping these plots vacant waiting for prices to rise.
Temporary accommodation of pilgrims and visitors during the religious seasons is a source of good income to the holy city.
