Unholy spending? Luxury leasing options on the rise in Mecca
New projects in the central area of Makkah has led Saudi and Gulf businessmen to renting out housing units in hotels overlooking the Grand Mosque for long-term lease of up to 15 years, Makkah daily reported.
Dealers in the hotels sector estimate the percentage of rented units according to the lease system at 5 percent of all housing units in the vicinity of the Grand Mosque.
Sources in the hotel industry pointed out that the main segment that asks for long-term lease are Saudi and Gulf businessmen. They said people with limited incomes cannot afford the high cost of long-term lease.
Deputy Chairman of the Hotels Committee in Makkah Chamber of Commerce and Industry (MCCI) Yasser Hariri said: “The leasing system has been there for many years, but in the beginning it was restricted to two or three hotels.
The growing number of hotels that overlook the Grand Mosque from all directions has created a rise in demand.”
Hariri further said: “Businessmen are the ones who prefer this kind of rental, as they prefer to be independent and live in a place without interference by anyone. They can visit Makkah whenever they want and find accommodation available throughout the year. In addition, they can receive guests to enjoy the view overlooking the Grand Mosque.”
Meanwhile, member of the Real Estate Committee in MCCI Muhsin Al-Surouri said the long-term lease of hotel rooms in the vicinity of the Grand Mosque has reached 5 percent. He does not expect this volume to increase any further, as this kind of renting targets only one segment of society — the super rich.
According Al-Surouri, there are hotels that reject this kind of renting, as it limits their profits, especially since the rents of the central area hotels change according to the season and at times reach their peak.
The hotels that deal in long term renting include Al-Bait Towers, Jabal Omar Project, Makkah Construction Company and Dar Al-Tawheed Hotel.
- Six savvy tips for choosing a real estate agent
- 'Selective softening': How Dubai's stabilizing property prices are in no way inclusive
- Abu Dhabi's Louvre: how far has it come and how far will it go?
- Saudi Arabia is getting creative about tacking its housing shortage
- Call it twisted, but it's actually cheaper to buy than rent property in Dubai