The Kingdom’s shift from gigaprojects to holy ground has caught Bloomberg’seye, shedding light on Makkah’s rapidly changing skyline as luxury towers, hotels, and the USD 27 bn Masar project by Umm Al Qura pop up across the holy city. The transition is part of a strategic pivot from stalled gigaprojects like Neom toward high-return sectors, with religious tourism — already generating bns — driving foreign investment and sending land prices near the Grand Mosque among the world’s highest.

When Makkah opened her gates: After Makkah’s property market was officially opened to global investors and overseas Muslims, it commandeered “Monte Carlo prices” near the Grand Mosque where land values hit USD 87k per sqm and attracted titans like BlackRock and HSBC, according to Bloomberg. The surge is underpinned by year-round pilgrimage demand, relaxed Umrah visas, and rapid hospitality expansion — from Ramadan suites topping USD 10k a night to the forthcoming world’s largest Courtyard by Marriott.

The boom brings trade-offs: Rising costs, heavier crowds, and the loss of historic neighborhoods have drawn concern from pilgrims and scholars, while experts warn against oversupply in the luxury segment, the business information service said.

Tags: