Makkah property

In recent years, there has been tremendous pressure in erecting new accommodation and other property structures in Makkah (Mecca) to meet the demand of visitors and residents alike.

Ever since the extension of Umrah season for nine months of the calendar year, demand for Makkah property (Mecca property) has cropped up.

Needless to say while this burgeoning demand for Makkah property (Mecca property) has resulted in some frantic construction of property in and around Makkah (Mecca), it has also led to the skyrocketing of Makkah property (Mecca property) prices in several pockets within the city. The spiraling prices of Makkah property (Mecca property) today are more noticeable in the central area which is the heart of this holy city. Makkah property (Mecca property) prices in this zone have spurted to record levels and the building land in this area is estimated to have become one of the costliest in the world. By an estimate, the average price of Makkah property (Mecca property) in this area is a staggering SR350,000/ square meter.

To ensure that escalating Makkah property (Mecca property) prices do not become a deterrent in any way for both residents as well as visitors, a novel concept of space-sharing has been now introduced. Religiously dubbed as “Al-Musharaka Bel Manfea” which means sharing of usage/utilities, it allows trading in accommodation space and thus tends to maintain a practical equilibrium in the Makkah property (Mecca property) scenario.

Apart from space sharing concept, the Saudi government has set afoot provisions to invite foreign investment in the real estate sector of the kingdom. The new law which has been brought in to give a facelift to Makkah property (Mecca property) has eight basic articles and has been titled as "the system of real estate ownership and investment of non-Saudis." This law facilitates resident non-Saudis to own real estate for their private residence with the permission of the Interior Ministry. It also paves the way for resident non-Saudis to buy property to carry their business activities as well as for the accommodation of their employees. The investors buying any Makkah property (Mecca property) are also entitled to use such properties for renting out purposes.