Mubasher: Makkah has been undergoing major transformation under Saudi Arabia Vision 2030, the leading real estate firm JLL said.

Progress on major infrastructure enhancements and growing connectivity in the Holy City in Saudi Arabia are projected to endorse Makkah’s tourism capacity, in addition to creating a wave of development opportunities, JLL added

“The projected influx of pilgrims supported by a more connected and modernised city is driving positive investor sentiment in Makkah and creating huge development opportunities particularly in the supporting retail and hospitality sectors,” associate at JLL MENA Dana Salbak said.

Several government initiatives are paving the way for Makkah to increase its capacity to 30 million pilgrims annually by 2030; this followed the milestone progress witnessed in 2018 with the megaproject Rou’a Al Haram Al Makki announcement, the inauguration of Al Haramain High Speed Railway, and soft opening of the new King Abdulaziz International Airport in Jeddah.

Salbak noted: “Despite mixed performance in 2018, the future outlook for Makkah’s real estate market remains positive owing to the significant advancements made by the government to improve and expand the city’s offering.”

The retail sector pipeline in Saudi Arabia is expanding and diversifying to welcome future tourist demands and accommodate them with major projects in their final stages, accounting for a significant share of Makkah’s future supply, as JLL says.

As for the hospitality sector in Makkah, JLL added that the city is expected to witness the delivery of 12,300 keys in 2019 and 34,700 keys in 2020; this step also represents a more diversified stock as operators adapt their offering to cater for new types of travellers.

“While 2018 was challenging, the city remains a hot spot for hotel operators looking to enter the market for the first time,” JLL added.