Dar Alamar is a Saudi investment
company that is concerned with real-estate development in Muslim holy sites, mainly the
city of Mecca. To appreciate the volume of such investment,
it is important to know that Mecca is a city of less than 30 sq.miles area, with an
area not more than 3 sq.miles surrounding Muslims Holiest shrine, the holy mosque of
Kaa'ba, to which every Muslim is to come once in a life time and perform the duty of Hajj
(Muslim obligatory journey to Mecca).
The volume of people to reside in this 3 sq.miles area exceeds
2.5 million people during the holy month of Ramadan or during Hajj. It is also important
to know that population of the Muslim world is somewhere around 1200 million people.
Taking all the above, the price of real-estate there, is the
highest in the Muslim world, ranging somewhere between 8000 - 60000 USD per square meter,
depending on distance from holy mosque. Dar Alamar has adopted the
concept of leasing those available estates from their owners rather than buying them to
reduce capital, increase return and diversify location.
Leasing contracts normally extend between 10-20 years, with
variable lease values depending on distance from Holy mosque and area of the property.
The only cost linked after leasing the property, is the
construction cost along with same other minor costs such as power company installation
fees, other utility fees, which in all do not consditue more than 5% of the capital
(construction cost).
Dar Alamar record with such investments is
out-standing. So far, four sites are currently under management.
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