Owners of property acquired for the Khuzam development project in Central Jeddah will be granted compensation for both their land and their buildings, said Tariq Telmisani, CEO of Jeddah Civic Development Company. Property owners will be given compensation of between SR900-5000 per square meter depending on the property location, he said Compensation for acquired buildings, however, will be assessed taking into account the age of the building and the material used in its construction, he added. Residents with no legal land deeds will also be considered for compensation as per the directives of Prince Khaled Al-Faisal, Emir of Makkah Region, he said. A committee including representatives of the Ministry of Justice, Ministry of Finance, Jeddah Governorate, Jeddah Mayoralty and real estate dealers has been tasked with giving reasonable compensation estimates of acquired properties. Owners have three compensation options, Telmisani pointed out. For their compensation money, they can accept a stake in the development or buy a residential unit in the project. They also have the option of simply selling their property to the developing company, the official said. Without exception, all properties will be acquired to expedite the process of the development project, he said. As part of its social program, the developing company has engaged in talks with Jeddah Mayoralty to provide alternative accommodation for owners and tenants, especially those who cannot afford to buy or rent a residential unit, he said. Rents are believed to be cheaper in Central Jeddah compared with newer Jeddah neighborhoods where a one-bedroom apartment can be as high as SR22,000 a year. Actual land and property acquisition will start next January by which time owners and tenants should have evacuated their places, Telmisani said. – Okaz __
