Saudi's Rou'a Al Haram to boost Makkah real estate
Up to $2.1bn could be added to Saudi Arabia's GDP through the project, which was announced by the Public Investment Fund in October 2017
The Makkah investments of Public Investment Fund’s (PIF) Rou’a Al Haram are expected to contribute $2.1bn (SAR8bn) to Saudi Arabia, a new study has found.
Rou’a Al Haram Company was formed in October 2017 by PIF, which is led by Saudi Crown Prince Mohammed bin Salman.
Phase 1 of the company’s projects will cover an area of 85.4ha, delivering 115 buildings of various architectural designs.
The development will help to boost Makkah’s economy and diversify Saudi Arabia’s economic base, in addition to contributing $2.1bn to the country’s gross domestic product (GDP).
Rou’a Al Haram’s scheme will also “boost the city’s capacity to host pilgrims, contributing to the 2030 Vision’s target of attracting 30 million Umrah pilgrims annually”, a study by JLL has found.
The Makkah Real Estate Market Overview – H1 2018 report by JLL states that the project, situated 1,400m from the Holy Mosque, will add 9,000 residential units to Makkah’s pipeline. These homes, however, are “not expected to be handed over before 2024, at the earliest”.
“The project will include [36ha] of commercial space and prayer areas to support over 400,000 worshippers,” the report continues.
JLL’s study examines how Makkah’s various real estate segments have performed during the first half of this year. The report has found that “approximately 2,000 standalone villas and apartment units were completed over H1 2018”.
It adds: “Noteworthy completions expected later this year include apartments in the second and fourth phases of the Jabal Omar Development, with further completions expected in 2019 as part of the third phase.”
Saudi’s Ministry of Housing announced this April that reservations for 4,550 units within the Retaj Makkah development had opened for housing support.
Commenting on this development, the study adds: “The project will be developed on a [130ha] land parcel in Umrah Al Jadidah.
“As construction is projected to take three years, handovers can be expected from 2021 onwards.”