
House prices in Makkah have risen 100 percent as a result of high demand.
Residents whose houses were demolished to make way for expansion projects around the Grand Mosque have also called for new houses.
Citizens are now eyeing the suburbs of the holy city, including Al-Nawaryeh, Al-Sharaie and Al-Sabhani, according to local media. Prices of these houses are estimated at around SR2 million, against SR1 million last year. Demand for land for construction is on the decline as people now prefer to buy ready-built houses.
The price of 1 square meter of land exceeds SR2,000 in areas such as Al-Sharaie and Al-Nawaryeh on the outskirts of Makkah. The injection of funds from outside Makkah had earlier contributed to the rise in land prices.
The prices have since leveled. Prices are expected to decrease once the Ministry of Housing begins delivering land plots and embarking on the construction of houses, which will be handed to citizens when building operations end.
Shareef Mansour Abu Raiyash, chairman of the Makkah Chamber’s Real Estate Committee, said real estate speculation contributed to the phenomenal hike in the prices of these projects.
“The prices will drop when these arbitrators take their capitals out of the market,” added Abu Raiyash.
An other developer, Osama Fergally, expected the collapse of prices of prjects that are not served because the majority of speculators are from Makkah.
Prices will begin to decline once the Ministry of Housing embarks on building residential units for citizens, said Saad Al-Ghamdi, another developer.
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