A number of real estate professionals in the Madinah region have confirmed that the announcement of housing projects has not contributed to a decline in real estate prices in Madinah; rather, it has led to a rise in prices amid growing demand for housing units and land in the city and the slow pace of implementation of those projects.<\/p>\n
Talal Safar Al-Omari, chairman of the Real Estate Committee and a member of the Valuation Committee at the Madinah Chamber of Commerce, said: \u201cThere is no indication that prices will fall due to the slow pace of construction\u2014which can take two to three years\u2014and increased demand amid limited supply,\u201d adding, \u201cThe impact of housing projects extends to land located far outside the Third Ring Road and to unregistered land without title deeds. However, land located nearby and within the Third Ring Road is not affected due to low supply and high demand, as well as land expropriations for the expansion of the Holy Mosque and the redevelopment of informal settlements in the King Abdullah Project and themigration from other regions of the Kingdom to Madinah for the purposes of housing, settling down, and investment.<\/p>\n
A number of businesspeople in the Medina region see the benefit of allocating large tracts of residential land in the city center and in development plans on all sides of the city, so as to help those seeking housing achieve their goal, alleviate the burden of paying rent, and at the same time reducerents and prices, which have become exorbitant.<\/p>\n
Experts point out that the allocation and development of residential land will help curb rising land prices and apartment rents, which will in turn boost the construction, ready-mix concrete, and building materials markets, and open opportunities for small contractors to participate in the project as subcontractors. However, delays in implementing these projects may not lead to any change whatsoever, as pointed out by many investors who have noted the slow pace of implementation and believe these projects will not alter the current market reality.<\/p>\n
Ayed Al-Sanani, a real estate investor, said that the delay in housing projects up to this point has had the opposite effect of driving up real estate prices, noting that even the infrastructure for the project that was launched in Madinah has not been completed\u2014an indicator \u2014as he described it\u2014that the housing project will be ineffective in lowering prices in the future. Al-Sanani noted that the housing project in the Medina area had no impact on lowering real estate prices, and its effect was limited to a stagnation in the suburbs of cities such as \u201cAl-Suwaidrah, Al-Mandsah, and, to some extent, Abyar Al-Mashi.\u201d As for the public services, facilities, and the residential environment, the project had no impact on them; rather, land and real estate prices within residential areas are rising significantly, We have seen nothing but a continued rise in real estate prices and increased development of undeveloped land by investors, particularly for properties located within urban areas and service-rich zones, As for the suburbs and outlying areas, they have experienced a significant slowdown due to the cessation of speculation there and the withdrawal of many who preferred to stop speculating and wait for new decisions to take effect, such as the Al-Awainah land grant plan, which is currently experiencing a slowdown and a decline in prices for reasons unrelated to housing\u2014namely, the withdrawal of speculators and the fact that the project has not benefited, as expected, from the expansion of the Madinah airport.<\/p>\n
Al-Sanani believes that real estate prices in Madinah will not be affected\u2014even if housing projects are completed and the units are distributed\u2014for two reasons: delays in project implementation and the growing number of people in need of housing, and the major expansion of the Prophet\u2019s Mosque ordered by the Custodian of the Two Holy Mosques.<\/p>\n
Sultan Muhammad, a real estate investor, said: \u201cSince Dhu al-Hijjah of last year, real estate prices in the Medina area have risen by 100 percent in most developments, particularly in the eastern and southeastern parts of the city,\u201d he said, noting that the housing project had no effect on lowering prices but rather led to a steady increase.<\/p>\n
He added that in the eastern part of the city \u2014Al-Rabwah, Al-Suleimaniyah, and Al-Sarani\u2014have a land availability rate of up to 10 percent due to limited supply. The same applies to the King Fahd development, where, as he noted, the market has dried up and some developments have been closed due to high demand and low supply.<\/p>\n
Fahad Marzouq Al-Maghawi, a real estate investor, stated: \u201cThe initial announcement of housing projects led to a lull in the market and a wait for implementation, but after delays and a prolonged wait, the real estate market returned to normal, and demand increased due to a lack of confidence in the ministry\u2019s promises,\u201d Al-Maghawi said. \u201cDemand exists, particularly in areas within the Haram, where there is high demand; however, supply is low due to the pending compensation for projects such as the train station, Darb al-Sunnah, and the expansion of the Prophet\u2019s Mosque, as 14,000 properties will be expropriated to carry out these projects.\u201d.<\/p>\n
Ahmed Al-Subhi, a real estate investor, said: \u201cTo date, no projects have been completed in Madinah except for the start of infrastructure work on the first project, which took a long time.\u201d He noted that demand for residential units remains high among many citizens, especially since a large number of people wish to own property in the Madinah area \u2014whether as a permanent residence or a unit to serve as a base for annual visits. He added: \u201cWe have not seen any decline in prices; rather, they are rising. The increase may be less than in previous years, but it is a noticeable and clear trend in the real estate market.\u201d.<\/p>\n
For his part, Saad Al-Shammari said that he had been looking for a property three years ago but chose to wait after the announcement of the launch of housing projects, expecting property prices to fall within a year or two of the projects\u2019 start. However, properties that were listed three years ago for half a million have now risen in price by 40 percent.<\/p>\n
Land granted to citizens about two decades ago appears to be one of the current tactics used by investors to drive up prices for end users, as stakeholders in Medina have called for the expropriation of unbuilt land and its purchase from owners for housing purposes, as well as allowing multi-story construction so that residential unitsresidential units under the Ministry of Housing to be built as multi-story structures in various sizes, starting with three-bedroom units for newlyweds. In cases where families have multiple children, the smaller apartment is reclaimed and prepared for small families of newlyweds, while larger families are given a larger apartment to accommodate them. He also called for the removal of more than 15 million square meters in the city, including more than 2 million square meters for the expansion of the Prophet\u2019s Mosque, emphasizing the necessity of imposing fees on vacant land.<\/p>\n
Economists had called for the rapid construction of housing units in the Medina area as soon as possible to mitigate the negative effects of the housing crisis\u2014ranging from rising land prices to a shortage of apartments and rent increases to around 45,000 riyals in some locations. .
\n(Economy)<\/p>","protected":false},"excerpt":{"rendered":"
Reading time: <\/span> 4<\/span> Minutes<\/span><\/span>A number of real estate professionals in the Madinah region confirmed that the announcement of housing projects has not contributed to a decline in real estate market prices in Madinah; rather, it has led to a rise in prices amid growing demand for housing units and land in the city and the slow implementation of those projects. Talal Safar Al-Omari, chairman of the Real Estate Committee and a member of the Valuation Committee at the Madinah Chamber of Commerce, said \u2026 Read more<\/a><\/p>","protected":false},"author":34,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"0","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"","_seopress_redirections_param":"","_seopress_redirections_type":0,"_seopress_analysis_target_kw":"","_seopress_news_disabled":"","_seopress_video_disabled":"","_seopress_video":[],"_seopress_pro_schemas_manual":[],"_seopress_pro_rich_snippets_disable_all":"","_seopress_pro_rich_snippets_disable":[],"_seopress_pro_schemas":[],"footnotes":""},"categories":[100],"tags":[],"class_list":["post-1948","post","type-post","status-publish","format-standard","hentry","category-residential"],"acf":{"amlak_post_excerpt":"","amlak_post_excerpt_source":{"label":"Amlak post excerpt","type":"text","formatted_value":""}},"featured_image_urls":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","trp-custom-language-flag":"","event-thumbnail":"","event-medium":"","event-large":"","event-hero":""},"author_info":{"info":["\u0627\u0645\u0644\u0627\u0643 \u0627\u0644\u0639\u0642\u0627\u0631\u064a\u0629"]},"category_info":"\u0633\u0643\u0646\u064a<\/a>","tag_info":"\u0633\u0643\u0646\u064a","comment_count":"0","_links":{"self":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts\/1948","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/comments?post=1948"}],"version-history":[{"count":0,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts\/1948\/revisions"}],"wp:attachment":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/media?parent=1948"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/categories?post=1948"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/tags?post=1948"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}