15
Left: Madinah
Below: Makkah; Abraj al-Bait
the latest Colliers report, land prices in the city are, on average,
US$13,000 per square metre, and have reached as much as
US$47,000 per square metre. To put this into context, land in
the capital Riyadh has an average value of US$7,000 per square
metre. At last October’s Cityscape Dubai, representatives from
Jiwar Real Estate Management & Marketing Company, which is
developing the Rawabi Abraj al-Bait, said properties were being
purchased for Jabal Omar costing US$4.5 million and being resold
for US$8.5 million.
Mohammed El-Amine, director of real estate development,
Saudi Oger, confirms that land prices in Makkah are, despite
the global economic crisis, continuing to rise. “The plans are
ongoing and will continue – they will not stop. Even now, the
prices for properties continue to rise, and for those in close
proximity to the Ka’ba, they are soaring,” he says. Investment in
such property is safe, he adds, due to the annual nature of the
pilgrimage and the noticeable increase of numbers each year,
necessitating the construction of residential units to be fast-
tracked. “We are secure because the Makkah pilgrimage, the
Hajj, brings people to the city every year. They have to come,
so you have a target audience. There is increasing demand and
there is undersupply,” he adds.
In 2008, according to figures from Prince Nayef bin Abdulaziz,
interior minister and chairman of the Hajj Supreme Committee,
a record number of foreign pilgrims arrived in the Kingdom. In
T_he kingdom is focusing on increasing the total 1,729,841 pilgrims arrived in Saudi Arabia from 178 countries,
number of religious tourists visiting the country
representing an increase of 18,026 from the previous year. And,
according to the Saudi Commission for Tourism, 51 percent of
for the annual Hajj as well as Umrah pilgrimages visitors in 2007 entered the country on religious visas, spending
Development Company, the US$2.7 billion project will provide
accommodation for around 100,000 pilgrims. It will feature 39
high-rise towers ranging from 20 to 48 storeys. It is expected to
include 22 hotel towers and 17 residential buildings. Furthermore,
it will comprise an elevated mosque with prayer facilities for
200,000 worshippers and an open prayer space for 120,000
people. The residential area is planned for 34,500 people.
While some argue that the very fabric of the holy city is
being eroded, as old buildings are demolished and hills primed for
construction, the government confirms that work is necessary
to cater for growing numbers. Furthermore, the Wahabi doctrine,
means that several sites have been systematically removed by
the government to ensure that Muslims do not perform idolatry.
New developments, however, are the cornerstone of the
burgeoning religious tourism industry in Saudi Arabia, with
all properties in Makkah – especially those near the Masjid
al-Haram – able to command record-level rates. According to
PREVIEW Cityscape Saudi Arabia
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