Arab –Islamic Committee seeks effective global sanctions on Israel    Saudi foreign minister calls for enduring Palestinian rights as only path to peace    Tornado kills at least 5, injures 33, in Chinese metropolis as region battles deadly floods    Iraqi TikTok star Umm Fahad shot dead in Baghdad    SFDA: Breast-milk substitute products are sugar-free complying with Saudi specifications    HONOR opens two HONOR exclusive service centers in Saudi Arabia to bring better customer experience    Saudi Arabia to host World Investment Conference amidst economic expansion    Saudi minister announces 10% increase in tourist numbers in Q1 2024    Traditional dress is mandatory for Saudi civil servants    Minister Al Ibrahim calls for enhanced global cooperation at WEF meeting in Riyadh    Saudi Finance Minister stresses importance of Vision 2030 at WEF Special Meeting in Riyadh    Saudi Arabia, EU strengthen energy collaboration with upcoming MoU    NEOM secures SR10 billion revolving credit facility to support development initiatives    Al Shabab overpowers Al Ittihad with a 3-1 victory in Jeddah    Saudi Olympic team exits U-23 Cup in quarterfinals, loses Paris 2024 Olympics dream    Al Hilal triumphs over Al Fateh in a fierce 3-1 clash at Kingdom Arena    'Zarqa Al Yamama': Riyadh premieres first Saudi opera    Riyadh Season announces first overseas event with boxing gala in Los Angeles    Australian police launch manhunt for Home and Away star Orpheus Pledger    Spice Girls reunite at Posh's 50th birthday    JK Rowling in 'arrest me' challenge over hate crime law    Trump's Bible endorsement raises concern in Christian religious circles    Hollywood icon Will Smith shares his profound admiration for Holy Qur'an    We have celebrated Founding Day for three years - but it has been with us for 300    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Decline in rents not to affect investments in Haji accommodation
Published in The Saudi Gazette on 07 - 10 - 2013


Saudi Gazette report
MAKKAH — Realtors said they do not expect the decline in rent rates in Makkah to affect future investments in pilgrims' accommodations.
They said the decline will not last more than three years and was caused by the reduction in pilgrim quotas. This reduction was caused by ongoing expansion work at the Grand Mosque.
They pointed out that rents have decreased by an average of 30 to 40 percent. Awadh Al-Ahmadi, member of the realtors committee at the Makkah Chamber of Commerce, said after the expansion work at the Grand Mosque is completed, the number of Haj and Umrah pilgrims is expected to reach 5 and 10 million respectively.
He said these large numbers of pilgrims will increase occupancy rates. He expected the next two years to witness an increase in residential projects to accommodate the expected increase in pilgrim numbers.
The executive manager of Al-Dhebaiban Real Estate company, Thamer Al-Dhebaiban, said the Saudi government decided to reduce the number of domestic pilgrims by 50 percent and foreign pilgrims by 20 percent.
He said this was a temporary measure until expansion work at the Grand Mosque is completed in three years time.
This decision was taken to alleviate overcrowding in the Grand Mosque and maintain their safety, he said.
Al-Dhebaiban said this decision will affect all commercial and economic activities, as many businesses await the Haj season every year because it is considered a main source of their income.
He said many pilgrim service providers have canceled contracts with the owners of pilgrims' accommodation buildings.
Al-Dhebaiban said his company expected rents in their accommodation sector to decline by 30 percent.
Many businesses pay high rent for shops during the Haj season and will not be able to meet these payments, he claimed.
He said some locations around the Grand Mosque that depend on income cost between SR5,000 to SR12,000 a square meter. These locations depend on income from pilgrims who are less in numbers this year.
Many will not be able to pay these rents and have asked for them to be reduced until pilgrims numbers return to normal.
Al-Dhebaiban said many businesses have let go about 30 percent of their temporary workers.
He said, however, this recession will not continue and that the residential sector will have a bright future. The government's development project to remove slum areas around the Grand Mosque will also add to the expected increase in demand for accommodation.


Clic here to read the story from its source.