Tenants in Makkah are currently being left with two choices by unscrupulous landlords: Either find somewhere else to go until the Haj season is over, or start looking for somewhere else to live. Population numbers in many large districts, such as Al-Aziziah, have declined considerably while remote districts like Al-Husainiah, Heda and Bahra have become crowded with tenants expelled by landlords wishing to avail themselves of the high rents pilgrims are willing to pay for accommodation in their buildings. Umm Ramzi said she was expelled from her rented apartment after living there for only 20 days. Umm Ramzi is a widow with children and no regular income. She had been looking for an apartment for three months, and now has to start looking again. Hani Suleiman, a real estate businessman, said a new phenomenon is being seen in Makkah. “Real estate offices are now renting residential buildings directly from owners on long contracts of up to five years, with the rent paid up front every year. The offices can set any rent price they want, or turn buildings into housing for pilgrims,” Suleiman said. Real estate observers in Makkah say the practice has caused a “crazy” increase of 25 percent in property prices and attribute the spread to the greed of landlords and real estate office owners. Makkah's real estate map has been reshaped after the tearing down of more than 1,000 properties in Shamiah District, and will see further changes with municipality intentions to remove properties in the districts of Khansa'a and Rai Al-Hidadah and with works due to begin on the Parallel Road and the Central Ring Road. Observers said there is a tendency among landlords in Al-Aziziah District to rent out buildings to pilgrims and those coming for Umra, which raised the prices in the market. Apartment rents in the districts of Shawqiah, Ka'akiah, Buhairat, Umra, Sharaye'a and Zahir, have increased by amounts ranging from SR5,000 to SR8,000. Tenants are feeling the pinch. “I've lived with my family in this apartment for 20 years, paying SR22,000 annually in addition to amounts paid for repairs and restorations,”said Saleh Falet, an expelled tenant. Musleh Al-Qarhi of Al-Aziziah District, says he has been looking for an apartment in Makkah for his 18-member family for five months. “Landlords looking for higher profit from pilgrims have clearly caused a decrease in the amount of available housing for Saudis and expatriates,” he said. Another tenant, Hussien Mahdali, says the only solution to the price rise is government intervention. “The absence of government supervision over the market has led to unfair price rises.” Saud Al-Hathli says the mayoralty should allow owners of property on main thoroughfares to build more floors, especially buildings on the Madina Highway, the Awali to Taif Road, and the Al-Sail and Faiha Roads. They should also permit four floors for buildings on commercial streets inside residential areas, he says. Ibrahim Al-Yami, a real estate businessman, wants to see Makkah Mayoralty speed up the planning and distribution of public land plots granted to Saudis as government expropriations have covered an area unprecedented in the history of the Holy City. Al-Yami also suggests controls to curb price increases, and to raise the Real Estate Loan to at least SR400,000 to help address the high price of building materials. He would like to see a rise in Makkah residents' share of the loans. Al-Shareef Mansour Abu Rayyash, chairman of the Real Estate Committee at Makkah Chamber of Commerce and Industry, puts the housing shortfall in Makkah at 15 percent, with a need for 200,000 housing units. Six thousand properties, he says, have been expropriated for development projects, and many investors prefer to build housing for pilgrims, guaranteeing them higher profits. – Okaz/SG __
