JEDDAH: Real estate experts have differing views on the impact of the floods on the real estate market in Jeddah. Some experts argue the prices would rise because many residents in the south and east of the city that were greatly affected would prefer to move to safer areas. Others think the conscience of businessmen in the city would not allow them to exploit a tragedy for profit making, Al-Watan daily reported on Friday.
“There is no indication that there will be any increase in property prices as the people’s conscience has been awakened and they are in a state of shock after the flood,” Chairman of the Real Estate Committee in the Jeddah Chamber of Commerce and Industry Khaled Jamjoum said.
On the other hand, deputy chairman of the committee, Abdullah Al-Ahmari disagreed with Jamjoum, saying that the prices have already started rising. He stressed the need for the authorities to interfere immediately to stop the realtors pushing up the price to abnormal heights.
He added that the committee intended to urge the municipal authorities to take steps to check the prices as the rise would only add to the woes of the flood victims.
He suggested to the municipal authorities to grant plots in safer districts to residents of the flood-affected areas if they want to move.
“The municipality should speed up its efforts to prepare the list of the residents of the flooded areas who have already applied for land grant and give them priority,” said Al-Ahmari.
Salim Barkah, a businessman, said when demand increases, the price goes up; it is a natural economic law. Real estate prices have been rising even before the floods hit the city, he said.
“There are 15 neighborhoods in the south and north of the city which are hit hard by the floods, prompting their residents to look for safer locations in the north of the city and which will apparently push up the prices in that part,” he said.
Jamjoum, however, did not rule out attempts by a few cruel realtors to exploit the painful situation. “Even if prices would rise it would be for a short while, things will return to normal soon,” he said.
According to a statement of the Makkah governorate the number of properties and vehicles damaged in the flood was 9,690 while Civil Defense also said in a statement that until Thursday evening, it identified 5,029 damaged properties and 4,664 destroyed cars.
