Investment in Mecca real estate sector on the rise
Mecca has been witnessing a huge influx of businessmen and investors interested in the holy city's real estate development. The flow of Muslims in the rituals of Hajj and Umrah leads to a boom in hotel construction.
More than 2.5 million pilgrims flow to Mecca annually to perform the Hajj. Those who visited in recent years have already witnessed the change in the city with luxury hotels and the high-rise residential buildings. Many high-rise buildings near the Haram have been built by Jabal Omar company with a total cost of more than US$5.5 billion. Additionally, Hilton and other hotel chain companies will open 26 new hotels to add to the city 13 thousand rooms.
The Saudi Fransi Bank indicates that investment of government and real estate development companies in Mecca and Medina will amount to approximately US$120 billion over the next 10 years. Today, some projects, costing US$20 billion, are underway in Mecca. Saudi authorities believe that they should provide accommodation facilities for more Muslims to visit Mecca and thus support an effort to develop and to expand the city regardless of the grumbling critics .
Some real estate experts argue that the meter square rate in the commercial area near the Haram can reach 100 thousand dollars, which makes it one of the most expensive - if not the most expensive - in the world. For comparison, the most expensive street in the world is said to be a street in Monaco, where the square foot price can reach US$180 thousand.