Real Estate Development in Mecca

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by: Waters Tim.
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Word Count: 390
Date: Fri, 25 Mar 2011 Time: 4:39 AM

In recent times, the increase in pilgrims participating in the annual Hajj to Mecca has put increasing levels of strain on the infrastructure and real estate. With almost two million pilgrims participating in Hajj in 2010 and the increasing ease of air travel leading to projections of further increases in future years, the Saudi authorities have authorized large scale real estate and infrastructure developments to properly accommodate for the increase in visitor numbers. In addition, the level of development has itself led to an increase in demand for affordable housing and better amenities, mainly due to the workforce required to deliver the approved projects.

Massive real estate developments are underway across Mecca, including both residential and commercial developments. One of the high profile projects which is currently under development is the Jabal Omar project being constructed in central Mecca in the vicinity of the Grand Mosque. The development will incorporate eight hotels and residential units to accommodate one hundred thousand people. The project also has commercial elements including more than four thousand commercial and retail units. This is one of five so called ‘mega-development’ real estate projects currently underway in Mecca.

The approval of such large scale real estate development projects in Mecca has had a major effect on the local population and economy. The developments have created numerous employment opportunities for both local Saudis and immigrants from across the Muslim world, particularly in the construction industry. An increased level of immigration into Mecca has in turn, placed additional demand on real estate developments, particularly for affordable housing in the region. There has also been a knock on effect on demand for healthcare and education which has encouraged ambitious education and healthcare plans to be implemented throughout Makkah province.

The continued development of real estate in Mecca is contributing heavily to the economy in Saudi Arabia and also plays an important role in the continued diversification of Saudi Arabian business away from a traditional dependence on petroleum. The rapid development of real estate is complemented by impressive redevelopment of infrastructure and also the main religious sites in the city. The Saudi Arabian authorities are continuing to push forward with their vision for the regeneration of Mecca and the real estate developments will play an important role in that vision for many years to come.

About the Author

Frank Jackson is the author of this article on Mecca Real Estate. Find more information on Mecca Development here.

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