The central district of Makkah is the busiest area in the Kingdom in terms of hotel occupancy and accommodation, and in recent years has seen steady growth and a real estate boom in the construction sector, with the number of hotels jumping from 650 five years ago to more than 1,200 hotels of all categories.

In addition, the central area and nearby areas in Makkah are experiencing unusual activity in construction and building operations, primarily in the form of residential accommodation projects for pilgrims and Umrah performers, while areas farther from the central region are focused on commercial and residential housing projects.

The residential accommodation projects for pilgrims and Umrah performers in central Makkah coincide with the expansion projects of the Grand Mosque, aimed at accommodating larger numbers of pilgrims and Umrah performers, Many investors believe that the expansion of the Grand Mosque requires a corresponding expansion of residential accommodation projects, with the construction of more hotels of all categories to accommodate the expected numbers of pilgrims and Umrah performers according to their financial capabilities.

Despite the relative calm in the Western Region, there is active movement in terms of agreements and the signing of contracts to rent accommodation and housing where pilgrims and Umrah performers will stay during the upcoming Hajj season.

In the same vein, real estate investors in the central region of Makkah al-Mukarramah affirm the significant viability of their investments and projects, noting that the region still needs more real estate investments to meet the demand for residential properties, expressing great optimism about the future of these investments, especially following the support promised by the Kingdom’s Vision 2030 for the Hajj and Umrah sector, aimed at revitalizing it year-round to serve as a source of income for the Kingdom.

Observers of the hotel market in Makkah note that prior to the current construction boom, prices used to rise during the Hajj and Umrah seasons, and pilgrims complained about this increase, describing it as clear exploitation of pilgrims by hotel owners. The price increases were due to the limited number of hotels, which were completely full during the seasons. Now, however, with the number of accommodation facilities having nearly doubled, prices have stabilized throughout the year, including during the Hajj and Umrah seasons, with the current occupancy rate reaching approximately 87.1%.