What is Masar land actually worth? The price of proximity in Makkah

Masar does not have one land price.

The developer behind the Masar project, Umm Al Qura, suggests that land at the Haram-facing end of the 3.6 km stretch is worth three times more than land near the Haramain station.

At first glance, the discrepancy across the figures seems stark. However, factoring in a premium for proximity to the Haram begins to shed some light on the sharp rise.

But what are developers actually paying?

What the transactions tell us

Umm Al Qura's Capital Markets Day presentation puts average land values at ⃁112,000 per sqm in Zone 1, ⃁65,000 in Zone 2 and ⃁35,000 in Zone 3.

The disclosed residential transactions tell a more grounded story. We take a look at 16 plots where we have both a price and an identified zone.

The numbers follow the direction of Umm Al Qura's zone benchmarks. Zone 1 plots are more expensive than the identified Zone 3 plots. Zone 2 prices fall somewhere in between.

Whilst the prices by zone vary significantly, the actual transaction data falls well short of the ⃁112,000 reference for Zone 1.

One of the sub-developers, Jazeel, provides a useful example. In August 2025, it bought a residential plot in Zone 2 for approximately ⃁145 million, equivalent to ⃁54,300 per sqm. Three months later, it bought another in Zone 1 for approximately ⃁205 million, or ⃁71,500 per sqm.

The same buyer, the same residential use, and a 32% higher price per square metre at the Haram-facing end.

Location is only part of the price

Residential land across Masar averages approximately ⃁56,000 per sqm, whereas hospitality land averages approximately ⃁44,000 per sqm.

That creates an apparent residential premium of roughly 26%.

Stripping out any effect of different zones, we can restrict the comparison to transactions in Zone 2, where the residential plots are priced 12% higher than hospitality.

With various exit routes for residential plots, this can drive a price premium. Units can be sold off-plan, retained for rental, operated as serviced residences or sold to a wider pool of buyers. A hotel depends more heavily on operating performance and occupancy. In a seasonal market such as Makkah, fluctuating occupancy across Ramadan and Hajj seasons creates an added risk.

What can you build on it?

Land price per square metre is easy to understand, but it should not be confused with the full economics of a development plot.

A developer is buying development capacity. If a plot allows substantially more floor space, a higher land price may still represent better value.

The surrounding destination matters too. Zone 2 offers King Abdullah Mosque, a planned souq and neighbours Masar Gardens. Zone 3 brings the station, Masar Mall and healthcare. Each zone offers a unique proposition to either visitor or resident.

Is the premium worth it?

Jabal Omar gives us a useful reference beyond Masar. A disclosed agreement for a 6,001 sqm plot was amended in August 2025 to approximately ⃁1.16 billion, equivalent to ⃁193,500 per land sqm - 73% above Masar's Zone 1 benchmark. It is one transaction rather than a district average, but it shows how much buyers may commit to land near the Haram.

Ultimately, these are land prices. They have a knock-on effect on property unit prices.

What we see in the market today is Arabian Dyar units being priced lower than the likes of Al Ramz. The station-end location creates a different proposition to a unit adjacent to King Abdullah Mosque and Masar Gardens.

For more info on how development decisions are impacting the prices paid for units, download the full buyer's guide to Makkah.