100 Hotel Towers Built in Mecca Each Year

Mecca—Follow-up
Approximately 100 hotel towers are built annually in Mecca, with 25 construction companies competing to build them.
The rapid growth in demand for residential and hotel towers has attracted dozens of major companies to enter the construction market in Mecca, especially as the campaign to demolish unauthorized and old buildings expands to make way for projects to expand the courtyards of the Grand Mosque, build train stations, the construction of ring roads, and the building of central service complexes for the Grand Mosque.
According to unofficial estimates, the cost of constructing residential towers in Mecca exceeds five billion riyals and is likely to rise as demand grows, with more than 7,000 properties expected to be demolished in southern Mecca, along the Parallel Road, and on Al-Zahir Road.
The construction market’s recovery is linked to the government’s unprecedented investment in Mecca, which has attracted massive investments in a frenzied race to enter the market, as well as the quick returns from the rental market for pilgrims and Umrah performers.
For his part, Saud Al-Saadi, a member of the Makkah Chamber of Commerce, said that the construction market’s recovery has been reflected in the ready-mix concrete market, where the number of companies operating in the ready-mix concrete sector has risen significantly over the past two years in Makkah to meet the growing demand from construction companies, as well as demand from citizens for ready-mix concrete to build their homes. The president of the Economic Club at the College of Economics and Finance at Umm al-Qura University considered the recovery of the real estate development and construction market a natural result of investor confidence in the Saudi economy, thanks to government patronage and generous support for the implementation of mega-development projects.