Investment Property in Mecca

Investment Real Estate in Mecca

Mecca property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Mecca.

Get Our Latest List of Investment Property in Mecca

Search Map of Mecca Investment Real Estate

Mecca, officially Makkah al-Mukarramah (Arabic: مكة المكرمة‎, romanized: Makkat al-Mukarramah, lit. ‘Makkah the Noble’) and commonly shortened to Makkah, is the holiest city in Islam and the capital of the Mecca Province of Saudi Arabia. The city is 70 km (43 mi) inland from Jeddah on the Red Sea, in a narrow valley 277 m (909 ft) above sea level. Its last recorded population was 1,578,722 in 2015. The estimated metro population in 2020 is 2.042 million, making it the third-most populated city in Saudi Arabia after Riyadh and Jeddah. Pilgrims more than triple this number every year during the Ḥajj pilgrimage, observed in the twelfth Hijri month of Dhūl-Ḥijjah.

Mecca is the birthplace of the Islamic Prophet Muhammad. The Hira cave atop the Jabal al-Nur (“Mountain of Light”) is just outside the city and is where Muslims believe the Quran was first revealed to Muhammad. Visiting Mecca for the Hajj is an obligation upon all able Muslims. The Great Mosque of Mecca, known as the Masjid al-Haram, is home to the Ka’bah, believed by Muslims to have been built by Abraham and Ishmael, is one of Islam’s holiest sites and the direction of prayer for all Muslims (qibla), cementing Mecca’s significance in Islam.

Muslim rulers from in and around the region long tried to take the city and keep it in their control, and thus, much like most of the Hejaz region, the city has seen several regime changes. The city was finally conquered in the Saudi conquest of Hejaz by Ibn Saud and his allies in 1925. Since then, Mecca has seen a tremendous expansion in size and infrastructure, with newer, modern buildings such as the Abraj Al Bait, the world’s fourth-tallest building and third-largest by floor area, towering over the Great Mosque. The Saudi government has also carried out the destruction of several historical structures and archaeological sites, such as the Ajyad Fortress. Non-Muslims (Kuffar) are strictly prohibited from entering the city.

Muslims from around the world visit the city, not only for the Hajj and Umrah pilgrimages, but also as tourists to visit regional landmarks such as the ‘Aisha Mosque (Masjid ‘Aisha) and the sites visited by pilgrims in the Hajj and ‘Umrah. Mecca is now home to two of the most expensive buildings in the world, the Masjid al-Haram, valued at 100 billion US dollars, and the Abraj al-Bait complex, valued at 15 billion US dollars.

Under the Saudi government, Mecca is governed by the Mecca Regional Municipality, a municipal council of 14 locally elected members headed by the mayor (called Amin in Arabic) appointed by the Saudi government. As of May 2015, the mayor of the city is Dr. Osama bin Fadhel Al-Barr. The City of Mecca amanah, which constitutes Mecca and the surrounding region, is the capital of the Mecca Province, which includes the neighboring cities of Jeddah and Ta’if, even though Jeddah is considerably larger in population compared to Mecca. The Provincial Governor of the province from 16 May 2007 is Prince Khalid bin Faisal Al Saud.

Get Our Latest List of Investment Property in Mecca

The financial stability of Mecca has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Mecca

Renting out your Mecca buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Meccaare – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Mecca and be prepared to change your initial outlook.
Thoroughly research the Mecca location with a special emphasis on fringe areas outside the main Mecca metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Mecca.
Ensure that your target investment property in Mecca appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Mecca properties yourself is an easy option, but are these savings justifiable when you run into Mecca red tape? Physis Realty Mecca office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Mecca buy-to-rent sector.

With our expert guidance, investing in Mecca provides the secure knowledge that your money is working harder than it would in a local Mecca bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Mecca, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Mecca property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Mecca

Flipping property in Mecca

Flipping property is when we advise clients to buy a Mecca property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Mecca market has a time to react to the renovation.

The Flipping Strategy in Mecca

Investment property flipping in Mecca is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Mecca real estate investments are sometimes referred to by professionals as ‘distressed’ Mecca real estate.

What is distressed Mecca property:

Mecca property in need of renovation
Mecca real estate with a change of puropose and use
Oversold Mecca property
Bank repossessions in Mecca

Put simply, long term investors in Mecca purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Mecca investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Mecca property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Mecca use a minimum profit value of 22% when looking at potential Mecca projects. The reason for this is because there are lots that can go wrong in Mecca property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Mecca

For luxury property investors hoping to add a superb property in {AsainCity} to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

Click Here for the Physis Realty Facebook Page

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Mecca, Physis Realty caters particularly to high net-worth individuals and families in Asia. A luxury real estate investment in Mecca should be entrusted to only the highest-quality agency.

Featured