As landlords and tenants are forced to move out to make room for many expansion projects under way in Makkah, rents are spiraling in the city even in places far away from the Grand Mosque.
Mayor of Makkah Osama Al-Bar had announced that the municipality plans to study the possibility of adding extra floors to buildings, especially those in busy areas. He said the study would take into account the entrances and exits of the city.
“We first want to know if this could be a viable step to overcome housing shortage in Makkah districts or not. Additionally, we want to make sure that these properties do not get in the way of expansion projects,” he said.
Maher Jamal, board member of the Makkah Chamber of Commerce and Industry, said, “Governmental and private projects have led us to expropriate real estate, which resulted in increased rents for tenants living in Makkah. We can’t deny that people are facing difficulties in finding alternative housing in Makkah,” he said.
Maha Barazeq is a Palestinian housewife who married a Saudi. She has been living in Makkah for five years. When she moved from Jeddah to Makkah, she rented an apartment for SR25,000 per year in an area close to the Holy Mosque. She had to leave her apartment to make room for the Grand Mosque expansion project.
“Because of ongoing expansion projects, I decided to move to an area far away from the Grand Mosque. I found an apartment just like my previous one with five rooms and two bathrooms, but at an annual rent of SR35,000,” she said. “As I couldn’t pay such a high rent, so I decided to move to a smaller apartment with three rooms for SR25,000.”
Khalid Al-Rayyes, a newly wed Syrian resident, works in Makkah. He decided not to rent an apartment in Makkah due to the price hikes.
“When I got engaged, I searched for an apartment in Jeddah. Prices were already high there, so I was happy when my boss transferred me to Makkah. I expected to find an apartment with a lower rent in Makkah in no time. The reality was completely different and unexpected. I found renting an apartment in Jeddah is difficult, but still much easier than renting in Makkah,” he said. “So I decided to rent an apartment in Jeddah and commute between my home and workplace.”
The expropriation process also influenced Saudis, who owned properties in Makkah. Mayor Al-Bar said that many engineering offices had presented inaccurate information about the surface area of real estate. They excluded the empty land around the building, and just recorded the space of the building itself. According to Al-Bar, such inaccuracies made a big difference between the cost of the real estate and the compensation a property owner would receive.
“I advise residents and property owners not to sign any contracts that don’t show the real size of their buildings and plots,” he said. “In such a situation the citizen should raise the issue with the Court of Grievances. Saudi law allows a citizen to ask for compensation that have been defined in the contract registering the real estate and land surface area.”
Ali Al-Ayoubi, the owner of a villa in the central zone of Makkah, said he received a low amount of money as compensation after his house had been expropriated.
“An engineering company evaluated my former villa at SR570,000. Their evaluation is accurate as it cost me that amount 10 years ago. Unfortunately, now I couldn’t find a villa for the same price. I would have to pay at least SR700,000 to buy a villa anywhere in Makkah,” he said.
