4, 2013 / 21 Safar 1434: Global real estate advisory firm Alpha1Estates
International said on January 4, 2013, and in the new Islamic year of
1434, that its real estate index for Makkah and Madinah grew by over
26% in 2012, reflecting the current boom in the Holy Cities for
developers and their investors.
The Ihsan al-Haramain Index, the first index to solely track
Saudi-listed companies involved in real estate development in Makkah
and Madinah, shows the double-digit growth in stock prices real estate
developers in the Holy Cities.
‘The Ihsan al-Haramain Index jumped by 26 percent this
year, doubling its 13 percent performance in 2011 and dramatically
out-performing by nearly four-fold the TASI average of all stocks of
the Tadawul (Saudi Stock Exchange) Real Estate Development Index which
grew by 7 percent,' said Mr Malik al-Alawi, the Chairman of
‘Makkah real estate stocks jumped by 27 percent, similar to
Madinah at 25 percent – but one Makkah-focused real estate stock
this year saw a jump of nearly 60 percent, giving a clear message about
Despite current gains, Alpha1Estates has proposed five critical pieces
of legislation which focus on globalising the sector to non-Saudi
Muslims, which will lead to greater investments, prosperity and quality
of life in the Holy Cities.
Real estate investment in Makkah and Madinah accounts for 40% of total
real estate investments in the Kingdom, standing at over $120 billion
over the next decade.
Alpha1Estates International launched in 2006 to become the world's
first company to market Saudi Arabian property globally and also the
first company to market property in both Makkah and Madinah. In
subsequent years, it has launched the world's first bespoke real estate
consultancy programme and joint-investment fund focused on the Holy
Land prices in the Holy Cities are the most expensive in the world, and hitting as high as $133,000 per square metre in Makkah.
In 2012, over 12 million Muslim pilgrims from 140 countries visited the
Holy Cities annually for Hajj and Umrah, contributing 60 billion Saudi
riyals ($16.5 billion), the second-most lucrative source of the
Kingdom's revenue after oil.
Expatriates form 40 percent of the Makkah’s population, and the
Holy City currently accounts for 11 percent of the Kingdom’s GDP.