“Development of unplanned neighborhoods and other projects have triggered a great surge in economic activity in the holy city. Property developers and builders are forging alliances capable of undertaking huge projects in the most modern of ways,” said Al-Suleimani.
The Saudi real estate businessman said construction in the areas around the Grand Mosque, extension of the prayer complex’s northern courtyard and construction of the city’s new circular roads will boost economic activity in the city.
“Most of the old properties standing in the way of development have been razed after their owners were reimbursed billions of riyals,” he said, adding that the real estate industry in Makkah has become very strong.
“Makkah has become an attractive hub for economic activities because of the Grand Mosque to which millions of pilgrims and visitors flock from the four corners of the earth,” he said.
He also underscored the significance of the government’s encouragement and support for developing the city, and that the huge projects in the city provide plenty of opportunities for local real estate development companies.
His group plans to construct residential units to sell on to people of middle incomes on an installment basis for between SR400,000 and SR500,000.
Al-Sulaimani said that development projects have made the price of real estate in Makkah increase dramatically in such a way that ongoing projects have increased according to the price per meter. For example, a commercial plot of land on a main road has reached between SR2,500 and SR4,500 per meter, whereas in the past the price per meter was between SR1,300 and SR2,500.
This is the situation likewise in the city’s Wali Al-Ahad land plot where the price has increased to SR1,800 per meter. “In the past it used to be between SR300 and SR600 per meter,” he said.
Al-Sulaimani added that in spite of the price increases citizens are still interested in purchasing land in Makkah to build high-rise buildings to rent to citizens and pilgrims.
In general, land in Makkah is in high demand with many people interested in buying. Many people consider real estate in the holy city as excellent investments, he said.
He added that it has become the norm nowadays for Saudis to aspire to own individual apartments in the holy city, something that people did not find attractive in the past.
“People in the past used to opt to buy entire buildings rather than just apartments. However, attitudes have now changed, and there is a shift in the way people are thinking these days,” he said.
