The company, which launched to global acclaim on January 1 2006, said that the two projects demonstrate the strength of the real estate projects in the Holy Cities, set to be further developed over the next decade.
The Al-Tilal Project in Madinah allows Muslims from all over the world to purchase permanent villa homes nearly 10 kilometres from the Prophet’s Mosque. The Royal Clock Tower is the central tower in the Abraj al-Bait Project, 50 metres opposite the Grand Mosque in Makkah, which allows Muslims to buy apartments on 24-year leases as part of a government-based religious endowment.
Alpha1Estates International launched in 2006 to become the world’s first company to market Saudi property globally and also the first company to market property in both Makkah and Madinah, with its projects ZamZam Tower, Makkah, Abraj al-Bait, Makkah, Hajar Tower, Makkah and Taiba Eastern Tower, Madinah all centrally located near the two Holy Mosques. In subsequent years, it has launched the world’s first bespoke real estate consultancy programme and joint-investment fund focused on the Holy Cities.
In January 2010, the company launches the Ihsan al-Haramain Index, the first index to solely track Saudi-listed companies involved in real estate development in Makkah and Madinah.
The main reasons why Muslim real estate investors should seek to invest in the Holy Cities now, Mr. Al-Alawi said, is based on inelastic and rising global demand from the world’s billion and a half-plus Muslims, supported by significant public and private sector investment in infrastructure, both for the Grand Mosques and transport to them.
Mr. Al-Alawi also said that over ten million Muslim pilgrims from 140 countries visit the Holy Cities annually for Hajj and Umrah, contributing 20 billion riyals ($5.3 billion) per year, the second-most lucrative source of the Kingdom’s revenue after oil.
Real estate investment in Makkah and Madinah accounts for 40% of total real estate investments in the Kingdom, reflected in land prices in the Holy Cities being the most expensive in the world at between $70,000 and $110,000 per square metre.
The Grand Mosque in Makkah and the Prophet’s Mosque in Madinah have undertaken multi-billion dollar expansion and infrastructure investment programmes, the CEO added.
Air transport to the Holy Mosques is also being boosted with the expansion of the Jeddah International Airport for Makkah and the Prince Mohammed bin Abdulaziz International Airport in Madinah, whilst ground transport is being transformed with the creation of the Makkah-Madinah Railway Link, set to be operational by November 2010.
Mr. Al-Alawi also said that the general macro-view of Saudi Arabia’s real estate market remains strongly favourable, for residential, commercial and investment purposes. Website: Alpha1Estates International