Saudi holy city sees surge in H1 property sale prices

Residential transactions in Makkah also up by 12% due to a drop in land prices - JLL
By Staff writer
Thu 27 Jul 2017 02:34 PM

Sales prices for apartments in Makkah increased by around 3.1 percent over the first half of 2017, according to JLL's H1 2017 Makkah Real Estate Market Overview report.

Sales prices for villas also increased by 5 percent, consistent with data from the Ministry of Justice which showed a general increase in residential prices in Makkah compared to the previous year.

The data from the MOJ also showed an increase in residential transactions over the first half of the year by about 12 percent, JLL said.

It added that the rise in transactions can largely be attributed to the drop in land prices in Makkah following a market glut, sparking increased interest from buyers and spurring demand from residential lands.

Rental data for apartments also increased by 6 percent over H1 2017, while villa rents remained relatively unchanged, JLL said.

The report also noted that the total supply of residential units in Makkah reached around 379,000 units in the first half of 2017, up 3,000 units in the past six months.

The most notable completion was the second phase of Wahat Makkah, which includes affordable units as part of the development, that delivered 1,300 units.

The development, by Al Balad Al Ameen, plans to develop a further 1,600 units over the next several years.

Notable upcoming supply includes approximately 200 apartments expected to be delivered as part of the Jabal Omar Development over the next several years.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.