In order to understand the price structure of land in the vicinity of the Grand Mosque requires, ideally, an investigation into the reasons underpinning this structure, as well as current land costs:

(i) The Cost of Land

(ii) Why is the land close to the Grand Mosque so expensive?

(iii) State purchases of land around the Grand Mosque

However, while supporters of heritage will agree that a site may be considered to be at its highest and best use when it provides the optimum return to its owner or user, but they will, at the same time, contend that HBU can manifest not only in monetary terms, but also in intangible and social values, or a combination of such values.

For Muslims, the highest and best use of the Bp site is as it is now.

Selling the bp

The price of land around the gm has reached a level that places the bp, along with other prime plots around the gm, as the priciest land in the world. However, with the addition of the heritage premium to the market price, means that the bp constitutes, by far and away, the most expensive land in the world today.

Despite the lofty rates, investment cartels , retail consortiums , and hotel chains are continuing to spend vast sums to gain a foothold around the gm. The lure is the near doubling of pilgrims visiting the city each year, and their spending power.

The bp sits in a neighbourhood that is not only undergoing rapid development, but setting investment records. The bp is now in the vicinity of the two most expensive buildings in the world: the Grand Mosque, which is the largest mosque in the world and also the priciest structure, costing $100 billion (£75 billion) to construct; and the Abraj Al Bait Towers hotel, which cost

$15 billion to build and is ranked as number two in the world‘s costliest buildings fn1. Coming soon is the Abraj Kudai hotel at a build price of $3.5 billion; this is expected to become the largest hotel in the world, and the seventh most expensive building in the world. To add to this tally of records, the silk and gold-embroidered cloth which is wrapped around the nearby Kaaba -

the Kiswa - is the valued as the most expensive cloth in the world, costing $8,800 per square metre. It contains 120 kilograms of gold thread and 100 kilograms of silver thread. The cost of the Kiswa is approximately $5.8 million fn2. Such distinguished neighbours can only enhance the perceived-value of the bp.

[[The new Kiswa is 658-square-meters long and is made of 670 kilograms of pure silk. For embroidery,

120 kilograms of gold thread and 100 kilograms of silver thread were used.

The cost of the Kiswa is approximately SR22 million ($5.8 million).]]

[fn1: Telegraph 27 Jul 2016]]

[fn2: http://www.arabnews.com/node/1359431/saudi-arabia August 20, 2018

It is abundantly clear that the muslim world today does not want the bp to be sold or developed in any way. However, real estate conditions in Mecca demonstrate, that if the bp were ever to be sold, it would fetch a record-breaking selling price. On the basis of its area alone, it would be worth at least ???????? Investors are aware that there is no other ancient site in the world that is

capable of delivering the calibre of investment returns that are forecast for the bp. When rare items such as historic paintings, jewellery, antiques, and classic cars can fetch eight-figure US dollar prices; and exclusive apartments and houses in the worlds leading cities reach nine-figures, then it is not inconceivable that a dedicated Muslim, a shrewd investor, or a Pilgrim-related business would be willing to spend eight, or even nine, figure US Dollar sums to acquire such a unique site.

Traditional approaches to establishing the value of heritage have centred upon economic

measuring criteria. However, this paper has illustrated that the value of heritage must be

based on more than solely economic considerations

###

REASON FOR ILLUSTRATIG THE DIVERSE RANGE OF PITENTIAL USES AND BUYERS FOR THE BP SITE TODAY, IS TO DEMOSTRATE THAT JUST AS TODAY THERE WOULD BE GREAT INTEREST FROM AROUND THE WORLD FOR PURCHASING THE SITE, SO FOR THE PAST 1500 YEARS THERE WOULD HAVE BEEN GREAT DEMAND FOR RHE SITE, DEMONSTRATE NOT LEAST, BY THE DEMAND FOR LAND ADJACENT TO, AND ALL AROUND, THE BP SITE.



Just as today sites surrounding the gm are highly sought after for a variety of purposes, there has existed high demand since the advent of Islam to obtain such sites. Had the BP been permitted to be acquired by the public, then it is certain that it would have bought and exploited for financial gain, as sites immediately around the Bp have been.   

Fn1: Middle East Economic Digest (MEED), quoted in …

Fn2: https://www.arabianbusiness.com/makkah-land-prices-hit-133-000-per-sq-metre-report-40490.html

         Thu 18 Feb 2010

Fn3: http://www.arabnews.com/saudi-arabia/square-meter-land-makkah-now-costs-sr-15-million

         February 09, 2013

Fn4: https://www.theguardian.com/cities/2016/sep/14/mecca-hajj-pilgrims-tourism

        Guardian 14 sept 2016

Fn5: https://www.venturesonsite.com/news/makkah-faces-shortage-of-large-and-suitable-land-plots-for-malldevelopments

         20th September 2018 ----- this site quoting a Tradearabia news report

New Paragraph

The type of buyer that would have been interested Today, the bp plot will appeal to 3 categories of buyers:

**PROOF OF THE PROPHET SAW VALUE, PROOF OF ISLAM VALUE**

“The Grand Mosque is the place to which Muslims all over the world turn their faces when starting their prayers, so it was the focus of interest of sultans, kings, princes, leaders and even wealthy Muslim people,” said Dr. Aminah Jalal, a professor of history at Umm Al-Qura University.
“They provided all financial support for the restoration and renovation of the mosque. Religious sentiments motivated them to send donations throughout the Islamic ages, as well as providing the workers and building materials necessary to take care of this blessed mosque.
”In days gone by, leaders also ordered wells to be dug and roads paved to make the journey to the holy sites easier for pilgrims, she added, but in the Saudi era, their efforts have reached a new level

In order to make well-founded investment decisions, a prospective buyer of real estate must ascertain, prior to purchase, the full implications of the projects under consideration at the site: the legal position, budget, time line, etc.

Amongst the methods used to undertake such fact-finding is the "highest and best use" (HBU) analysis. This study requires a valuer to consider not only the current use of the property, but also the potential value associated with alternative uses. The valuer will then narrow down all of the alternatives to one highest and best use of the property.

This HBU analysis involves assessing whether the proposed uses are:

-- Legally Permissible. What potential uses of the site are, for example, offices, retail, or residential, are legally permitted? This entails a consideration of zoning laws, building codes, and government regulations.

-Physically Possible. The features of the site, such as it's  size, shape, topography, soil conditions, and natural environment will affect, to some degree, what uses are suitable at the site.

In the case, of heritage buildings, the potential for structural changes, such as a new facade, re-partitioning, or expansion, may be constrained, since historic buildings generally have significant restrictions attached to them in regards to major transformations.

-Financially Feasible: This examines whether a potential use of the property can generate a sufficient return to the investor to justify the costs of purchase, development, and maintenance. The factors considered include:

--Development costs. The total outlay on the project is estimated, including build costs, fees, and finance costs.

--Profitability. If the purchaser wishes to use the site to run a business, then calculations are carried out of likely gross takings, and deductions for finance costs, capital expenditure, operating costs, and overhead expenses.

--Potential Tenants. Where a buyer intends rent the property to a commercial tenant, he will, in addition to evaluating his own expenditures on the site, need to consider the type of business that could be operated from the premises and the likely outgoings and remuneration for the tenant, in order to judge whether the site is feasible for renting to a commercial tenant.

Similarly, where the site is to be converted into residential property for rental, projections will be made of the type of tenants likely to be interested in renting the property, as well as demand, occupancy levels, and rental income.

--Maximally productive. After eliminating proposed uses that are not physically possible, legally permissible, or financially feasible, the valuer presents the proposed uses that meet these requirements and ranks them in order of highest value or return on investment.

While ranking the potential uses,the risks involved are also considered. A high reward possible use, for example, may also have a more significant risk factor than any of the other proposed uses.

From an investment perspective, the highest and best use of a property will be the use which optimizes the value and profitability of the asset and is within the investor's risk tolerance.

---Modern day Buyers for the bp

The bp sites has always encapsulated qualities that would appeal to a wide range of buyers: a sought after location, flexibility of use - for either residential or business purposes, substantial-income/profit potential, a history that was directly relevant to local citizens and international pilgrims, a sacredness that was genuinely valued, and the immense prestige that would be conferred on whoever owned it. These elements have existed for 15 centuries. The type of buyer that would have been interested Today, the bp plot will appeal to 3 categories of buyers:

--Business operators

For a commercial enterprise, the bp represents a hugely lucrative opportunity. The current expansion of the gm will allow sa to increase Haj and Umrah visa quotas from the current ???? To ???? Pe year. With such immense volumes of pilgrims visiting the mosque next door, a substantial number would be expected - as at present - to want to visit the location of the bp. Any business operating from the site, which provided pilgrim-related products or services, could expect to convert a sizeable number of these visitors into customers. Currently, businesses such as financial services, retailers, fast-food chains, and hotels are vying for the best locations around the gm. The hospitality sector, in particular, experiences high occupancy rates from the millions of customers competing each year for the limited number of haj or umrah places available. This is allowing meccan hotels to charge some of the highest room or suite rates internationally: hotel suites with the best views are costing $7,000 per night during peak seasons. https://www.theguardian.com/artanddesign/2012/oct/23/mecca-architecture-hajj1too old quote.

Generally owners [[M. AROUND THE BP GM AREA]] fall into the following categories; private individuals; central government and their business space providers; local authorities; health services; managing agents and commercial property investors. T

Although property owners are diverse,

--Landlords ..real estate developers

Proximity to the gm has become the ultimate currency, allowing landlords with properties within walking distance to charge sky-high rents. Demand for apartment-type accommodation around the gm has always been extremely strong and delivered higher rates of return on investment than other areas of mecca. It can be expected, therefore, that demand from pilgrims for

accommodation situated on the site where the Prophet saw himself lived, will be nothing short of phenomenal. It would also, in all probability, command Mecca’s highest apartment rental rates.

--Home seekers

For wealthy meccan citizens searching for a primary residence in the city, or those from outside the area seeking a second home or base close to the gm, the bp would be the ideal site. It’s location would not only give any house constructed here a high level of prominence, but also grant its owners a unique status, as well as convenient access to mecca’s most exclusive retail

district.

--Devout muslims

For devout Muslims and Muslim organisations, the prospect of owning and living on the site that once housed the founder of their religion, and witnessed events immensely sacred to Islamic history, would be exceptionally appealing. Worshipping in the gm each day while residing in the bp site, would be considered to be one of the ways of life/ideal lifestyle/finest lifestyles possible for a dedicated follower of the Prophet saw. Muslims of a spiritual bent would be aware that one of the surest ways to earn the priceless next-worldly rewards would be to own and preserve the bp of one God‘s Prophet‘s ams.

However, while supporters of heritage will agree that a site may be considered to be at its highest and best use when it provides the optimum return to its owner or user, but they will, at the same time, contend that HBU can manifest not only in monetary terms, but also in intangible and social values, or a combination of such values.

For Muslims, the highest and best use of the Bp site is as it is now.

 It was a mandatory step, so an investor could understand how much time and money it might take to renovate and reconvert the building, anticipating the technical difficulties that might occur, and to make an accurate and well-founded investment decision.

In order to make well-founded investment decisions, investors in real estate must ascertain, prior to purchase, the full implications of the projects under consideration at the site: the legal position, budget, time line, etc.

deem it is mandatory to investigate the costs of

Filling in the gap between the current status of the building and the proposed future projects was another important milestone in the valuation process. The construction work timeline and budget are estimated.

While ranking proposed uses, it is also helpful to consider the risk associated with the proposed use.

are evaluated to discern which would give the highest return on investment.

Utility value is as a subjective assessment of the expected return on an investment at a given risk, also the utility value an investor assigns to a given investment depends largely on the investors risk tolerance.

An area of land may be considered to be at its highest and best use when it provides the optimum return to its owner or user, which may be as measured in monetary terms, or in intangible and social values, or a combination of such values.

for most Muslims, it highest and best use is as it is now.

The most complex part was to complete the highest and best use analysis of the property, considering the perspectives of a potential investor: physical possibility of transformation, legal limitation from urbanistic point of view and economic feasibility. So, the next step was to understand the limitations of the building in terms of interventions it can support and repartitioning for future economic purposes, because a historical building generally comes with significant such limitations for future reconversion and construction.

Client requirements may ask for advice taking into account the client’s specific circumstances. For instance, in recommending how much to bid for the purchase of a site based on the construction costs that can be delivered by the client as a contractor. The residual method involves estimating the cost of a project and the new value created with an allowance for profit and contingency. The difference between value and cost represents the value of the unimproved property. However the estimation of costs and the timing of future payments can be complex.

SO THE BP POT C BE BOT AND AHACENT LAND BIUGHT FOR A 100 ROOM HOTEL..... AND IF BP SITE IN BIG DEMAND NOW , CERTAINLY IT WAS IN BIG DEMAND DURING THE PAST 1500 YEARS.

Utility value is as a subjective assessment of the expected return on an investment at a given risk, also the utility value an investor assigns to a given investment depends largely on the investors risk tolerance.

The investment method is used for valuing properties which are normally held as income producing investments.

while the assessment of development costs will also require comparison to be made with build costs, fees, finance costs and other elements in similar projects.

Estimating the income and operating expenses and errors magnified on capitalisation. It is not of use to owner occupied or special purpose properties.  The cost approach – estimating depreciation particularly with regard to older buildings is difficult. Construction costs constantly change due to labour costs availability and fluctuations in the cost of materials.

Filling in the gap between the current status of the building and the proposed future projects was another important milestone in the valuation process. The construction work timeline and budget are estimated.

 It was a mandatory step, so an investor could understand how much time and money it might take to renovate and reconvert the building, anticipating the technical difficulties that might occur, and to make an accurate and well-founded investment decision.

Filling in the gap between the current status of the building and the proposed future projects was another important milestone in the valuation process. The construction work timeline and budget were designed, with the valuation of the required quantities and construction costs being completed by one of the most prestigious appraisers in Romania for such estimates. And it took more than three weeks. It was a mandatory step, so an investor could understand how much time and money it might take to renovate and reconvert the building, anticipating the technical difficulties that might occur, and to make an accurate and well-founded investment decision.

REASON FOR ILLUSTRATIG THE DIVERSE RANGE OF PITENTIAL USES AND BUYERS FOR THE BP SITE TODAY, IS TO DEMOSTRATE THAT JUST AS TODAY THERE WOULD BE GREAT INTEREST FROM AROUND THE WORLD FOR PURCHASING THE SITE, SO FOR THE PAST 1500 YEARS THERE WOULD HAVE BEEN GREAT DEMAND FOR RHE SITE, DEMONSTRATE NOT LEAST, BY THE DEMAND FOR LAND ADJACENT TO, AND ALL AROUND, THE BP SITE.

whoever acquired the site would face criticism, perhaps long term, and face an international campaign to return the site back to heritage site for visitors to appreciate and revere.

asset for which there is often a limited market.  --- if a muslim buys, would he wante to ive on a site of such saxredness, where some behaviours would be disliked or prohibited, where they may have to use or live in a way that they may find difficult, for examle, no shoes, as in the current livrary, no imoral behaviours... would they be will to accept the fact every day and night many pilgrims will be visting the site to pay their respects, perhaps thousands of people each week.

not only the breadth of the values attached by people and businesses to the Bp, but that these values and the wide spectrum of buyers for the site, but that the significance attached to the site is based primarily on the sacredness inherent in the site as believed by the citizens of Mecca and pilgrims from around thee world, and the profit-earning potential from visitation to such sites by local and international visitors, believed by the commercial sector. both these reasons existed ....  associated with them These values have existed from the first century of Islam, and likewise the demand for the acquisition of such sites, from various quarters, has also existed since that era.

REASON FOR ILLUSTRATIG THE DIVERSE RANGE OF PITENTIAL USES AND BUYERS FOR THE BP SITE TODAY, IS TO DEMOSTRATE THAT JUST AS TODAY THERE WOULD BE GREAT INTEREST FROM AROUND THE WORLD FOR PURCHASING THE SITE, SO FOR THE PAST 1500 YEARS THERE WOULD HAVE BEEN GREAT DEMAND FOR RHE SITE, DEMONSTRATE NOT LEAST, BY THE DEMAND FOR LAND ADJACENT TO, AND ALL AROUND, THE BP SITE.

Just as today sites surrounding the gm are highly sought after for a variety of purposes, there has existed high demand since the advent of Islam to obtain such sites. Had the BP been permitted to be acquired by the public, then it is certain that it would have bought and exploited for financial gain, as sites immediately around the Bp have been.   

############################################

Generally owners [[M. AROUND THE BP GM AREA]] fall into the following categories; private individuals; central government and their business space providers; local authorities; health services; managing agents and commercial property investors. T

Although property owners are diverse,

An area of land may be considered to be at its highest and best use when it provides the optimum return to its owner or user, which may be as measured in monetary terms, or in intangible and social values, or a combination of such values.

the haj ministry use the site

So, the analysis of the potential income, occupancy and exit value lead us to the conclusion that transforming the building into a luxury hotel is more feasible, with final calculations showing that this scenario would be 15% more profitable for an investor comparing with the office scenario.

A valuation is achieved by reference to the profits which a reasonable tenant could make from the occupation of the property. This involve examining the accounts to determine typical trading figures. From gross takings receipts deductions are made for operating and overhead costs, tenant’s capital and interest but excluding rent or mortgage interest payments. The result of this calculation is the “divisible balance” and represents the amount available for tenant’s share of the remuneration and landlord’s rent. This method is dependent on an interpretation the accounts to produce a reliable estimate of the market value. .... considers the criteria to be adopted by valuers when assessing market value or market rent for an individual trade related property. 

whoever acquired the site would face criticism, perhaps long term, and face an international campaign to return the site back to heritage site for visitors to appreciate and revere.

asset for which there is often a limited market.  --- if a muslim buys, would he wante to ive on a site of such saxredness, where some behaviours would be disliked or prohibited, where they may have to use or live in a way that they may find difficult, for examle, no shoes, as in the current livrary, no imoral behaviours... would they be will to accept the fact every day and night many pilgrims will be visting the site to pay their respects, perhaps thousands of people each week.

The profits method is used for a property whose value is derived from the trading potential of the business for which the building is purposely designed i.e. hotels and cinemas are typical examples. Comparison is used in assessing a fair maintainable level of trade

So, the analysis of the potential income, occupancy and exit value lead us to the conclusion that transforming the building into a luxury hotel is more feasible, with final calculations showing that this scenario would be 15% more profitable for an investor comparing with the office scenario. In order to accommodate an international chain affiliated luxury hotel, a building must offer at least 100 keys. Once the architects confirmed that around 150 rooms might be accommodated in the existing premises and several international operators confirmed their interested in the branding the project, our mission became easier.

The investment is,

 however, significant, as can be expected for a historical building with such unique heritage like BCR Palace. But the market shows that it can absorb an offer for a hotel of this kind. Generally, buildings with a solid structure that can be preserved, but with renovations needed in all other areas in order for them to be reconverted, require an investment of about 900 euro per square meter, without considering the investment for furniture and all other specific equipment needed. An upper medium hotel adds another 10,000 - 15,000 euro per room for FF&E, while a luxury hotel can invest even double per room. Considering a potential exit value of over 250,000 euro per room, a price sustained by the transactions closed in our market or similar markets in the CEE region, the project becomes feasible. SO THE BP POT C BE BOT AND AHACENT LAND BIUGHT FOR A 100 ROOM HOTEL..... AND IF BP SITE IN BIG DEMAND NOW , CERTAINLY IT WAS IN BIG DEMAND DURING THE PAST 1500 YEARS.

Filling in the gap between the current status of the building and the proposed future projects was another important milestone in the valuation process. The construction work timeline and budget were designed, with the valuation of the required quantities and construction costs being completed by one of the most prestigious appraisers in Romania for such estimates. And it took more than three weeks. It was a mandatory step, so an investor could understand how much time and money it might take to renovate and reconvert the building, anticipating the technical difficulties that might occur, and to make an accurate and well-founded investment decision.REASON FOR ILLUSTRATIG THE DIVERSE RANGE OF PITENTIAL USES AND BUYERS FOR THE BP SITE TODAY, IS TO DEMOSTRATE THAT JUST AS TODAY THERE WOULD BE GREAT INTEREST FROM AROUND THE WORLD FOR PURCHASING THE SITE, SO FOR THE PAST 1500 YEARS THERE WOULD HAVE BEEN GREAT DEMAND FOR RHE SITE, DEMONSTRATE NOT LEAST, BY THE DEMAND FOR LAND ADJACENT TO, AND ALL AROUND, THE BP SITE.

Utility value is as a subjective assessment of the expected return on an investment at a given risk, also the utility value an investor assigns to a given investment depends largely on the investors risk tolerance.

Estimating the income and operating expenses and errors magnified on capitalisation. It is not of use to owner occupied or special purpose properties.  The cost approach – estimating depreciation particularly with regard to older buildings is difficult. Construction costs constantly change due to labour costs availability and fluctuations in the cost of materials.

The investment method is used for valuing properties which are normally held as income producing investments.

while the assessment of development costs will also require comparison to be made with build costs, fees, finance costs and other elements in similar projects.

Client requirements may ask for advice taking into account the client’s specific circumstances. For instance, in recommending how much to bid for the purchase of a site based on the construction costs that can be delivered by the client as a contractor. The residual method involves estimating the cost of a project and the new value created with an allowance for profit and contingency. The difference between value and cost represents the value of the unimproved property. However the estimation of costs and the timing of future payments can be complex.

The most complex part was to complete the highest and best use analysis of the property, considering the perspectives of a potential investor: physical possibility of transformation, legal limitation from urbanistic point of view and economic feasibility. So, the next step was to understand the limitations of the building in terms of interventions it can support and repartitioning for future economic purposes, because a historical building generally comes with significant such limitations for future reconversion and construction.

USERS PER BIRTH SITE

Valuations based on comparisons between heritage sites are only likely to be reliable if one is valuing the same or similar assets. Moreover, the assets need to be in similar contexts: a historic building may be similar to another historic building, but its economic value may be partially determined by, as previously highlighted, its environmental surroundings or human geographical context. 

###################

If a valuer attempt to arrive at the market value for the Bp, by comparing it with the known market value of the birth site of the founder of another religion, then in addition to analysing their locations, size, current use, date of transactions, etc., the valuer will also need to compare the characteristics of the populations visiting each of these sites. This will involve analysis such as: (i) examining the behaviour of individuals and groups visiting each site, and recording, for example, how often they visit the site; and (ii) Employing the Travel Cost Method: this concept seeks to determine the amount consumers are willing to pay for a particular location, even if there is no entry fee to pay. Visitors to a site are sampled using survey techniques to determine key information such as visit frequency, distance travelled, time taken, travel costs incurred and demographic characteristics. By aggregating the observed travel costs associated with a number of individuals accessing the site, an overall value can be obtained.
 
 

Study and policy sites must be similar in terms of population and population characteristics or differences in population must be accounted for HOW ANY
 
 

The aim will be to determine how similar the two populations are, what dissimilarities exist between these populations, and how these differences may lead to significant variations in the market value of the two sites.

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EXTRAS

The valuation of heritage real estate can involve far more analysis than is required for conventional non-heritage sites, and is somewhat of a specialised undertaking. The process requires consideration of a multiplicity of factors such as: the philosophy underpinning the protection of the building, its [t.their] significance - whether local, national, or international, its [t.their] intended use, and its economic and cultural benefits. It may also need to factor in public resistance to the notion of a valuation and disposal, and its potential impact on the marketing and achievable price.

offered by the include:

Another issue is identifying the intrinsic value is the cultural experience. Cultural experience is often based on personal experience and varies by different people

There are a variety of kinds of extrinsic final value, including part value, symbolic value, conditional value, etc.

The central points of this Section can be summarised as follows:

One can imagine other use values of a less direct nature. 

Economic Value

[Monetary Gains]: for residents - Properties in proximity to the site are valued higher than similar residences at a greater distance from the heritage building;

and for businesses - custom from visitors and tourists in addition to sales to local customers. 

However, today more sophisticated techniques are emerging for the valuation of heritage properties which do not view empirical economic data as being the primary or sole way of valuing heritage assets. These techniques position cultural value as a significant component in the total economic appraisal of a historic building. In particular, valuers may consider the value of a heritage site in terms of its Intrinsic value and Instrumental value.

the Birthplace is every Muslims Birthright          First, WTA is consistent with the notion of heritage as ‘birthright’.

The wider meaning of the term ‘heritage’ is generally associated with the word ‘inheritance’ and is something transferred from one generation to another (Nuryanti, 1996).

M... FOR MANY BELIEVERS, the heritage site which they and the rest of their nation inherited from the past, are as important to protect and pass on intact the the next generation, as the property, jewelrey and other belingongs they intend to pass on to their children.... of their religion as is valuable as the items they

the lesser known and rated diriya birthplace has is considered so important valued so highly that it has 500million spent on developing it and its surroundings , and this is for a birthplace of a mere follower of the Prophet saw - on this basis what should the bp of his leader saw be worth and how much more should be spent on embellishing that and the area around it.then mere

The value of the land should only be based on the intended[m. best]  use and not the best [m. most profitable use]use. This is because land where say offices are permitted to be built would be worth more than land upon which only a fire-station could be built. SO LAND WITH PERMISSION FOR A 2O STOREY/MULTI STOREY HOTEL, OR OFFICES, WOULD BE WORTH MORE HIGHER SELLING PRICE THAN FOR AN IDENTICALLY SIZED AND LOCATED PLOT WITH PERMISSION ONLY FOR A RESIDENTIAL BUILDING OR A 3 STOREY OFFICES...LAND AROUND GM GRANTE PERMISSION FOR HOTELS, FAST FOOD CHAINS AND RETAILERS, SOETHING OTHER BIRTHPLACES WILL NOT GET... SEE HOLIEST SITES AND BIRTHPLACES IN OTHER RELIGIONS TO SEE WHAT DEMOLISHED, HOW CLOSE HITELS, RETAILERS TO THE HOLY SITE.

There are a number of other factors a valuer will have to take into account when assessing the value of historic buildings. In some cases, weighting the impact in monetary terms may be straightforward, but for other intangible factors the effect will be more difficult to quantify, particularly where it is reliant on subjective interpretation.

 Accurate analysis of evidence and an understanding of the many factors influencing value are essential in order to arrive at a well-informed opinion.

In this respect, the valuation process for historic properties is no different to any other category of property. It is recognised that historic properties may present more challenges for the valuer, because of their particular characteristics and lack of uniformity compared with more modern buildings. Valuers need to not only recognise these factors and issues that are specific to historic property, but also understand how these are then manifested in the valuation.

HISTORIC

Valuing historic properties or sites is not different to valuing any other type of property. The beginning of the process is starting with the first principles, adopting one or more of the valuation methods and adapting that selected and when required allowing for the issues that affect the individual property. In relation to historic buildings and before attempting a valuation, it is necessary to have an understanding of the historic and architectural characteristics as well as factual information relating to the structure to be valued.

The valuation of historic properties requires valuers to understand the philosophy underpinning the protection of the historic environment. While the weight of opinion might lean towards the view that listing and conservation area status add value in terms of prestige and heritage value,

Whilst many elements within a valuation, such as the effect of location and local market conditions, can be assessed with clarity and certainty, the impact of the ‘heritage’ aspect is difficult to measure. Heritage value can be physical and/or associative, and is most simply defined as: the assessment of the effect on value specifically attributable to the historic character and particular circumstances of a property (RICS, 2013). The effect on value of a heritage element will be exclusive to an individual asset, but can also have an impact the market value of the surrounding properties. For example, the presence of historic buildings located within a conservation area may increase the value of properties located within or nearby its boundary. A ‘heritage’ aspect can often increase value, but this is not always true.

Non-heritage properties are commonly valued by the Comparison method of valuation - this involves assessing the prices achieved for similar buildings (the study properties) in the market [already sold], and applying these to the building being valued [to be appraised] (the subject property), whilst making allowances for the differences between the two sites. Valuations tend to be relatively straightforward as there is usually sufficient trading activity to provide comparable evidence and a price range within which to position the subject property.observe the level of prices and thereby determin the marketine the value of them by comparison

A comparable can be broadly defined as an item used during the valuation process as evidence in support of the valuation of a different item of the same general type. Comparable evidence comprises a set of comparables used in support of a valuation. The asset being valued relies on the established economic principle of substitution. This means a buyer of an item would not pay more than the cost of acquiring a satisfactory substitute. A price to pay for a particular item will therefore normally look to the price achieved for similar items in the market (the comparable evidence) and makes a bid with this information. When identifying, analysing and applying the comparable evidence, the valuer or potential purchaser will ensure that it is: comprehensive, there are a number of comparables similar or identical to the item being valued, recent transactions and representative of the market at the time of the valuation, an arm’s length transaction in the open market i.e. not connected parties, checked where possible and consistent with local market practice. Comparable evidence forms the basis the valuation for most openly traded goods.

In contrast, heritage buildings present special challenges to valuers, as few are sold in the open market. This often results in there  being little or no transactional data to compare one historic site with another. Therefore, The established valuation principles used for more modern buildings usually cannot be applied to historic buildings.

a lack of comparable evidence renders use of conventional techniques inappropriate or impossible in many instances.

The solution is usually to value heritage real estate by taking into account factors such as: their significance - whether local, national, or international, their intended use -  on the assumption that the existing use of the building continues, or an alternative use, commonly retail, offices or leisure,

The valuation of heritage properties requires careful consideration of a multiplicity of factors that can take into account the importance of these properties, such as long-term maintenance needs and the various restrictions on alterations

It is understandable, that attempting to appraise/a  valuation of what is a truly unique historical landmark, holding international significance, where there is no established trading market, and whose mere appraisal will attract international criticism and condemnation is an undertaking fraught with difficulties and complexities..............poses

The value of the assets is not necessarily economic value but may be social and cultural value in nature

 It is common practice to use market evidence from local comparable transactions to value building or structure. Historic buildings are often difficult to value using this method due to the limited transactions in the market place. Often comparables will need to be sourced from outside of the local area and into different regions and even nationally.

In order to measure the value of heritage assets, a ‘non-standard’ treatment needs to be applied, which takes into account other notions of value besides economic value. In valuers language, heritage assets generate both economic value and cultural value, and whereas for a non-heritage building, an assessment of economic costs and benefits would be regarded as sufficient for the appraisal, for a heritage site, an evaluation of net benefit streams in both economic and cultural terms will be required.

Even a relatively low profile heritage site with relevance only for the locality or region can deliver considerable public benefits: such as:

Economic Value [Monetary Gains]: for residents - Properties in proximity to the site are valued higher than similar residences at a greater distance from the heritage building; and for businesses - custom from visitors and tourists in addition to sales to local customers. 

Cultural Value [Non-Monetary “Value”] -  historic buildings offer many layers of “value” to a community, for tourists and visitors, as well as for  for residents and businesses, these include: aesthetic value, social value (sense of identity and space), prestige, spiritual value, symbolic value, urban context value, authenticity value (its genuineness), and historical value.

If a valuer is able compare the financial outlay and return [costs and benefits] associated with a site in commensurate terms, then valuation becomes a relatively straightforward undertaking. However, in the case heritage assets, whereas the financial benefits of a site [economic value] can be measured through standard practices, attempting to translate the cultural benefits of a site, which exist in non-monetary units, into monetary terms, requires the consideration of a multiplicity of factors concerning these cultural attributes, and it often requires a committee made up of valuers and other specialists to arrive at a value determination.

hen a buyer is purchasing the right to the enjoyment of future benefits and where future benefits are expressed in monetary terms. I

determined, First, if one cannot compare costs and benefits in commensurate terms, it is hard to know how much to spend on them. If benefits are in some non-monetary units but costs are in monetary terms, then the only techniques available for rational decision-making are (a) leaving it to political judgement and (b) cost-effectiveness analysis14

Value can be divided into two categories intrinsic and Instrumental. 

Instrumental value

The instrumental value is the benefit of a heritage product in terms of visitors and volunteers and wider social, economic, environmental and educational benefits at a community level.

Instrumental value is the benefit of the heritage product in terms of visitors and volunteers and wider social, economic, environmental and educational benefits at a community level... Instrumental value is the ancillary economic effects such as urban regeneration which may derive from the asset... The ancillary effects of culture is where culture is used to achieve a social or economic purpose and ... the instrumental aspect lies in emphasising culture as a means or instrument to attain goals in other than cultural areas.

Economic Benefits

Our tourism industry benefits immensely because of our historic environment and this includes the additional economic effects.

Intrinsic value

The intrinsic value is the inherent in heritage, the benefit derived from heritage products for their existence value and for their own preservation; historical, aesthetic, social or scientific

Intrinsic value is the individual intellectual, emotional and spiritual experience of the heritage. It is also the value inherent in heritage, the benefit derived from heritage products for their existence value and for their own sake; historical, aesthetic, social or scientific and the value of an asset through fundamental analysis without reference to its market value... Heritage property value cannot be expressed only with statistics because the heritage value is influenced by other factors like intrinsic value. Intrinsic value is the value of an asset through fundamental analysis without reference to its market value. Historic Buildings have their own intrinsic value

Historic buildings have intrinsic value in their own right, they are evidence of human achievement in arts, design and construction and beneficial to a nations spiritual and cultural well- being. 

Another issue is identifying the intrinsic value is the cultural experience. Cultural experience is often based on personal experience and varies by different people (Holden, 2004). In contrast, extrinsic value is the based on appearance or what it could be sold for, which may not be the real value. Final value is the value something has for its own sake. There are a variety of kinds of extrinsic final value, including part value, symbolic value, conditional value, etc.

Inherent value

The Venice Charter (1964) establishes the inherent values of heritage, and the relationship between these values and the fabric of the structure: "A monument is inseparable from the history to which it bears witness and from the setting in which it occurs". (Article 7). The Charter further emphasises that these values should be revealed so that the site's meaning can be ‘read’: "Every means must be taken to facilitate the understanding of the monument and to reveal it without ever distorting its meaning". (Article 15, ICOMOS, [1964] 1996.

 FN: The Venice Charter is the common term given to The International Charter for the Conservation and Restoration of Monuments and Sites (ICOMOS) [1964].

The central points of this Section can be summarised as follows:

o Heritage assets have economic value, where economic value is defined as the monetary value of the wellbeing that individuals obtain from those assets.

o Where an asset is threatened with disappearance, its entire total economic value constitutes the benefit of preventing that disappearance.

One can imagine other use values of a less direct nature. Suppose the heritage site is a landmark asset that confers prestige and attraction on the surrounding area. Then, anyone living in that area might derive an amenity benefit from the site and this might show up in the value of their property. The element of the price of the property that is due to the heritage site reflects individuals’ WTP to locate in that area because of the heritage site.

OTHER BENEFITS

Traditionally, these concepts are predicated on preserving the object rather than conserving the meanings and values associated with the object. In other words, the goal is to benefit the object and not the people who value the object. This method, which has roots in antiquated nineteenth-century Western scientific traditions, deprecates the importance of people, processes, and meanings in how places are valued and conserved. Thus, conservation professionals produce “objective” meanings for other conservators, but not for everyday people. The net result is a failure to understand how local populations actually value their historic places

here may be cases where an asset which incurs considerable and non-recoverable ongoing costs of management and maintenance will have a value in exchange which far outstrips any figure which is rational in cash flow analysis terms. For example, a property, which has decaying fabric may attract buyers drawn to its aesthetic and historic interest features and who are in a financial position such that their decision-making is not dictated by consideration of costs.................... the valuation of this type of property [[mmeuseum pieces]] is, on occasion, highly subjective and that opionions of experts may vary considerably in terms of attribution and authenticity, as well as value.

heritage assets present unique challenges to valuers. Many heritage assets have seldom been valued in the past....... market value with reference to comparable transactions, or in the case of some real estate assets, potential profitability. Whilst "worth to the owneer".....worth to the nation

There is one other major category of economic value that needs to be considered.

the market value of many types of asset will not be an appropriate measure of their perceived cultural or educational worth, which cannot be measured in financial terms

non-use value (NUV) or passive use value. Apart from residents and visitors, the general public of the region or nation, or even the international community, may be willing to pay something towards the upkeep of the heritage asset, regardless of the fact that they may not visit it or be near it7 . This form of value is known as non-use value (NUV) or passive use value. NUV can be substantial and may outweigh UV, especially where goods are unique. This WTP arises from all kinds of motives. One obvious motive is that many people feel the influence of the past and they see themselves as stewards of the nation’s heritage.What matters is that people may be willing to pay to conserve heritage despite having no use value for it.

Altruistic value is derived from the knowledge that others may enjoy the historic environment

whilst bequest value is derived from the desire to conserve heritage assets for future generations8 .

Existence value refers to the benefits that arise from the knowledge that our heritage is being conserved per se.

 Indeed, without the explicit consideration of the non-use value associated with heritage, the public good argument that often supports public provision of cultural goods is typically less strong for heritage assets, especially where it is possible to charge entry fees and exclude users. 

option value. Yet others may be willing to pay to conserve the option of visiting the site or locating near it in the future. This is option value. Efforts to estimate this notion of option value have not always been very successful because of the difficulty of separating it out from other notions of WTP.

Irreplaceability

As with other heritage assets, the Bp is irreplaceable in the sense that, once lost, the original cannot be recreated. ‘Copies’ and replicas can often be made, just as there are replica Norman forts and Saxon villages. The degree of irreplaceability is perhaps more severe for built heritage than it is for environmental assets. Apart from the extinction of species and, say, primary forests, many environmental assets can be recreated with barely discernible differences from the original. The question is whether irreplaceability makes heritage assets special in the sense of making them a challenge for economic valuation (or even incapable of economic valuation). .... postponing irreversible decisions.

Uniqueness

A lot of heritage sites are unique and that in itself generates an interest as rarity adds value. 

o Cultural assets tend to be heterogeneous – they are complex combinations of characteristics. This may make value transfer subject to considerable error. 

Valuations will be affected by factors such as styles, locations, condition, local and national policies, whether the building is listed or in a conservation area, and public perception.

Most valuers’ work is based on the concept of ‘market value’, which is the value the building might be reasonably expected to achieve after reasonable exposure in a free, stable market.  Real market value is not the same as the value to the owner, who may be affected by feelings of sentimentality and a distorted sense of worth. Also, value and price are not the same: even though prices are often the best indicators of market value, they are not decisive.

PRICELESS

the issue of heterogeneity is a critical one. Not onl does the unique nature of many heritage asets mean that comparables are not available, there is a view held by many that there are some assets which are considered 'priceless'. By this, ot is meant, not that they cannot be priced, but that the price that would be achievable may not be a true reflection of their unique contribution to overall cultural wealth. in short, such a market value may fail to recognise worth as opposed to value. where the asset is deemed to have high 'worth', but does not yeild a market value using conventional methodology, it might be decided that it is not practicle to calue the asset on the balance sheet...this situation os most likely to arise in relation to assets which could be considered to fall under the head of National Treasure.

heterogeneous

The reason is simple: value transfer is only likely to be reliable if one is valuing the same or similar assets. Not only that, but the assets need to be in similar contexts: a historic building may be similar to another historic building, but its economic value may be partially determined by its environmental surroundings or human geographical context. 

o Cultural assets tend to be heterogeneous – they are complex combinations of characteristics. This may make value transfer subject to considerable error. .... HARDER TO COMPARE and value.... too many dissiilarities.

The valuation provided for the lender will often be based on comparable sales of similar buildings with adjustments for location, size and date of transactions. The outcome of this this research is a new valuation technique

Site/good characteristics should be the same, or differences should be accounted for

As Section 2.7 previously highlighted, the typical heterogeneity of heritage assets is an important consideration in relation to the reliability of transferring economic values from one context to another. Of concern is the expectation that economic values associated with the historic environment and heritage assets are likely to be highly site and good-specific. Without a high degree of similarity between the study good and the policy good (in conjunction with a similar change in provision of the good as discussed above) it is unlikely that value transfer will provide an accurate proxy of economic value at the policy site. 

From a practical point of view, this implies that if a WTP value is sought for a project that values restoration of some aspect of, say, a cathedral, then studies that have considered the benefits of restoring the similar features of other cathedrals will be the most suitable candidates for value transfer. However, further difficulty can be envisaged since clearly no two cathedrals are identical. This point is particularly pertinent, indeed any given heritage asset is likely to display distinctive features that are unmatched elsewhere, be they in terms of physical characteristics (e.g. an exemplar of a certain architectural style) or in terms of historical association (e.g. the site of an important historical event).

It is common practice to use market evidence from local comparable transactions to value building or structure. Historic buildings are often difficult to value using this method due to the limited transactions in the market place. Often comparables will need to be sourced from outside of the local area and into different regions and even nationally.

The valuation provided for the lender will often be based on comparable sales of similar buildings with adjustments for location, size and date of transactions. The outcome of this this research is a new valuation technique

quite apart from the physical features of a heritage asset site there is a subjective element which might include local people’s feelings about the site, wider landscape setting, and also ecological and wildlife considerations. Similarly, current appraisal guidance also uses judgemental indicators to establish the significance of the heritage asset in question. These indicators relate to each of the WebTAG features categories above, and are:

 o Scale (on which the asset matters) – this is the geographical scale at which the feature/attribute matters to policy makers and stakeholders at all levels. It also includes international or national commitments (e.g. UNESCO, Planning Policy Guidance, etc) suggesting the level of importance of a site.

o Rarity – refers to how unique the asset is as an example of its type and incorporates assessments of fragility and vulnerability.

o Significance – while designations suggest level of significance, this indicator is not wholly based on designation, but more generally on the characteristics of a heritage asset that makes it important. 

this heterogeneity certainly represents a significant obstacle to the selection of economic values for new policy good contexts that may arise. The implication is, then, that when seeking to employ value transfer, judgement concerning the degree of similarity between the policy good and the study good will be a particularly important influence on the perceived validity and reliability of economic values inputted to the appraisal process. 

Critically then, some assessment and judgement is needed when undertaking value transfer exercises to determine what is ‘similar enough’. 

Study and policy sites must be similar in terms of population and population characteristics or differences in population must be accounted for HOW ANY USERS PER BIRTH SITE

 If the characteristics of the population of interest for the policy good are different from the population affected by the study good, then it is likely that WTP for the heritage asset in question will differ between these two contexts. Therefore when undertaking a value transfer exercise it is important to consider differences that may exist between these populations and how these differences may influence the WTP amount that is transferred to the policy context.

Again it is the case that some judgement will be needed to determine how similar the study sample population and the policy good population are, and whether any differences between these two populations would be expected to lead to significant differences in WTP estimates between the two sites. 

Hence, the report so far has focussed on the use of value transfer without explicitly considering if sufficient valuation literature exists to enable value transfer exercises to take place. Indeed the quality and breadth of the existing body of literature will determine whether conditions that relate the matching of a policy good to a study good can be satisfied.

By and large, these criteria appear to be fairly restrictive, making it unlikely that a ‘perfect’ match can be made between a study site and policy site. In particular, value transfer in relation to the historic environment faces an additional dimension of complexity due to the largely unique nature of heritage assets. A whole host of characteristics and features serve to ensure that two assets are seldom alike. Some of these are perhaps more descriptive (e.g. form, survival, condition, time period, etc as well as designations), while others are of a more subjective nature (e.g. significance).

Surroundings

LOCATIONAL CONNECTIVITY

it will be a matter of valuer judgement and experience as to the added value that may arise by the connection of a portable asset to a particular location. for example, the very fact that an item of art is placed within its original setting may add value which, if moved would be lost. in such cases it is the ci-location of the portable and the realty which can create additional value.

The provenance of an item will often significantly enhance value due to association with a particular former owner(s).

Where there are no (or limited) transactions to use for the comparative method, the residual method provides another valuation approach. The limited analysis of comparable sales can give a useful check of the accuracy of a residual valuation.

Client requirements may ask for advice taking into account the client’s specific circumstances. For instance, in recommending how much to bid for the purchase of a site based on the construction costs that can be delivered by the client as a contractor. The residual method involves estimating the cost of a project and the new value created with an allowance for profit and contingency. The difference between value and cost represents the value of the unimproved property. However the estimation of costs and the timing of future payments can be complex.

DIFFERENCES BETWEEN BIRTHPLACES   ... INCLUDING DIRIYA

The travel cost method The travel cost method (TCM) concept is calculated by incurring time and money costs, consumers reveal a willingness to pay for a particular location, even if there is no entry fee to pay. Visitors to a site are sampled using survey techniques to determine key information such as visit frequency, distance travelled, time taken, travel costs incurred and demographic characteristics. By aggregating the observed travel costs associated with a number of individuals accessing the asset a demand curve can be plotted, and an overall value obtained.

Smith (1986) argues TCM produces more reliable estimates than other valuation techniques such as, for example, the contingent valuation methodology and the reason is TCM uses observed instead of hypothetical data to generate results. There are two types of TCM theses are visitation frequency model and choice model (Navrud & Ready, 2003). The visitation frequency model sees how often the individual or similar groups tend to visit the given site. While, the choice model looks at the given site, which site will be selected by the visitor. The advantages of TCM are 1) it's based on actual behaviour and 2) can be applied without great expenses

-Why is the land close to the gm so expensive

Or so lucrative, profitable,

The most expensive land in Saudi Arabia is found in the neighboring areas of Mecca’s Holy Mosque. The growing demand combined with limited supply of housing units caused a surge in real estate prices in recent years. The situation is similar with temporary accommodation: rising demand for rental units and the lack of adequate supply have led to substantial rent increases.

1) High Demand

Land in the vicinity of the gm, the Central Zone, carries the highest prices. This due to the extraordinary demand from meccans and visitors to dwell close to the gm. The key reasons for wanting to reside near the gm is to obtain the additional rewards of praying in the gm, and to minimise travelling time to and from the mosque for each prayer…/…ease the frequent travel to

the gm:summarised these as follows:

-- Praying in the gm carries 100,000 more reward than a prayer in any other mosque in mecca. Meccan residents who wanted to perform their five daily prayers in the gm wanted to live near it to make their five visits more convenient.

--The merit for a prayer is increased by going to the mosque on foot. Therefore, the distance between the worshippers house and the gm had to be sufficiently close to make walking practicle/walk to and pray there on a daily basis.

--Living near the gm conferred prestige. People who resided in the vicinity of the gm were considered more pious and blessed.

considered more pious and blessed.

--..Meccans who lived in outskirts of the city who visited the gm on a daily basis were forced to trek along narrow roads in poor conditions. Many decided to relocate their homes closer to the gm in order to avoid the time-consuming and difficult daily commute.

--The desire of large numbers of pilgrims to have their accommodation as close as possible to Al-Haram prompted many landlord’s to buy plots and properties near the gm as they would not only command higher rental rates, but also have high occupancy levels, and fewer void periods.

The competition for

2) Shortage of house building land

The primary reason for the limited supply of land in mecca was topographical constraints. The city is situated in a valley surrounded by steep mountains. This has meant that for most of its history, physical expansion of Mecca has been hindered and development has been confined mainly to the relatively flat areas of the city centre. The combination of the accommodation required for meccan resident s and ever-increasing numbers of pilgrims has meant that Mecca had faced housing congestion and shortages since the second century of Islam both the indigenous and temporary populations. both resident and pilgrim populations

At the time of the migration of the Prophet Mohammed (PBUH), Makkah consisted of a small nucleus of houses belonging to the elite of Makkah's tribes and encircling the Ka'aba. Most of these houses were one storey and enclosed by temporary structures of tents, dry stone shacks and covered shelters where the slaves, servants and other labourers lived and worked to serve their masters as well as the pilgrims. Located at a distance from the houses were some scattered tents of nomads and herds of camels, sheep and goats belonging to the merchant families ofMakkah. 1

1. Angawi, Sami, Makkan Architecture, Ph.D. Thesis, University of London, 1988, p. 151.

Closeness to the Holy Mosque has always been a primary factor in the growth and development of Makkah. From the first centur of Islam, the desire to live near Al-Haram led to the settlement becaming more compact around the Kabah. The inhabitants built their houses close together in tight clusters to make maximum use of the limited flat land

This area developed over the past centuries to serve the specific purpose of providing both

residential and allied service areas for people wanting to live near the Haram.

Small shops filled in where possible and smaller mosques were built, scattered throughout the

city.

Ibn Battutah, who visited Makkah in 725, described it as a “big city" in terms of its built up area

and absolute size of its population

1. Ibn Battutah., (1958) The Travels of Ibn Battuta, Translated with revision and notes by Gibb., H. A. R..,

Cambridge P-397.

The intensive land use around the gm was not without its issues: the area became experienced congestion and high population density. The economic viability of lots that were close to the Haram produced amorphous shaped plots, a symptom of maximum exploitation. Roads, public squares and other open spaces suffered in the search for building sites. The minimum allotment for the street network led to short, narrow roads and alleys. This caused difficulties for the movement of both local and pilgrim traffic.

In 1803 a European named Ali Bey visited Makkah and gave the following description:

"There is no open place or space in Mecca (Makkah) because the irregularity of the ground and the want of space would not-permit it". 2

TRAVELS OF ALI BEY IN AFRICA AND ASIA. Travelled to mecca 1806-1807

Travels Of Ali Bey - Vol.2 Publication date 1816.………p96

In 1877 Keane visited Makkah and gave the following description :

"The whole of this valley, about one mile and a half long by one third of a mile across, is packed and crammed with buildings of all shapes and sizes, placed in no kind of order, climbing far up the steep side of the surrounding hills ..... “ 5

5. Keane, J. F. (1881) My Journey to Medinah : Describing A Pilgrimage to Medinah, Tinsley Brothers,

London, p. 27. CHECK CORRECT PAGE NUMBERS FOR ALL 3 ABOVE QUOTES

REFERENCES

1. Ibn Battutah., (1958) The Travels of Ibn Battuta, Translated with revision and notes by Gibb., H. A. R.., Cambridge P-397.

2. Bey, Ali (1816) Travels of Ali Bey in Morocco,, Tripoli, Cyprus, Egypt, Arab-i'-a, and Turkey between_Syria the years 1803 and 707, Longman, London,, p. 96.

3. Burckhardt, J. L. (1968) , Travels in Arabia, Frank Cass and Co. Ltd., London, pp. 102-104 (Reprint of 1829 edition).

4. Burton, R. F., (1964) Personal Narrative of A Pilgrimage to Al-Madinah and Meccah., two volumes, vol.I., Dover Publications, Inc. New Yorký PP. 376-397 (Reprint of 1893 edition).

5. Keane, J. F. (1881) My Journey to Medinah : Describing A Pilgrimage to Medinah, Tinsley Brothers, London, p. 27.

6. Rutter., E.., (1928) 'The Holy Cities of Arabia., two volumes,, I vol. I. London PP-3b-44. 7. HurSronje, C. S.., (1931), Mekka in the latter Part of the 19th Century., Luzac and Co., London, pp. 81-106.

The Steps that  help establish the value of a historic building:

• Inspection, involving a detailed survey and analysis;
• Undertaking a historic survey involving any statutory listing, researching the building’s history and identifying any reference works, local records etc;
• Undertaking a detailed condition survey;
• Understanding the architectural qualities and any special features, their local significance and contribution to the visual environment or townscape;
• Understanding who is likely to be interested in buying the building, whether private individuals, companies, developers, local authorities, social groups etc;
• Understanding  prevailing market conditions;
• Considering how much it could cost to repair or adapt and maintain the building for whatever use is envisaged.
• Understanding constraints on development. for example, listed buildings involve a government-imposed control on owners that could make repairs and refurbishments far more costly than might at first be appreciated;
• Considering whether the building has heritage value – can it be said to be a national treasure in any way?

         Assessing whether the building has any capacity to provide future income.

These considerations may help establish a historic building’s value, which in turn may help potential buyers (or sellers) make an informed decision.

EXTRAS

Generally, a discussion about assigning monetary value to a religious heritage site, or speculation about /over its commercial potential, tends to draw criticism [may appear/viewed] and be labelled a crass practice [to many], one that clashes with the sentiments of believers, displays ignorance of the permanence of sacredness, and one which fails to understand that these sites play roles for, and deliver benefits to, the communities that believe in them, which simply cannot be measured by money, and which cannot be replaced by any amount of money, and one which actively encourages developers to seek to purchase and destroy the site for higher profit generating alternatives.

outstrips the supply of residential houses.

The growing demand combined with limited supply of housing units caused a surge in

real estate prices over the past years.

Rising demand for rental units and the lack of adequate supply have led to massive rent

increases.

t was indicated earlier that since the early days of the foundation of the holy cities, their

ccmmercial and residential areas have evolved around Al-Haram and each has competed

with the other to gain a foothold as close to Al-Haram as possible.

have competed with each other to gain a foothold as close to Al-Haram as possible.

the limited supply of flat land adaptable for development

demand for many retail and other services immediately around Al-Haram, commercial

activities serving both population compete with residential demand around Al-Haram.

Administrative buildings were also intermixed on land used by residential and

commercial activities surrounding Al-Haram

The Birthplace plot is situated in the Central District of Mecca - next door to the city’s primary landmark, the Grand Mosque. The mosque was visited by 9 million pilgrims last year and who spent ??? The area close to the Mosque is considered prime land and has some of the highest land values anywhere in the world. For decades the fierce /intense competition between housing developers, hotel chains, and retailers for these plots has caused prices to rise rapidly.

State purchases of land surrounding the gm

We know from accounts of state purchases of land - from both /either end of the Islamic history of mecca - that the land close to the gm has always commanded substantially higher high values than other parts of Mecca.

1) [THIRD] ABBASID CALIPH, MOHAMMED AL-MAHDI  (775–785)?????

AL-MAHDI BEGAN OUT AN EXTENSIVE EXPANSION OF THE GRAND MOSQUE IN MECCA IN 161 A.H./A.D. 777 [[[ OR 783]]]; HE DIED IN 785, PART WAY THROUGH THE ENLARGEMENT, AND WORK/PROJECT WAS COMPLETED, BY HIS SON AND SUCCESSOR AS CALIPH, MUSA.......... IN..............

THE SIZE OF THE MOSQUE WAS INCREASED BY 12,512 SQUARE METERS.BY ADDING APPROXIMATELY 15,000 SQUARE METRES TO THE MOSQUE. ..... BY PURCHASING DEMOLISHING A SUBSTANTIAL NUMBER OF PROPERTIES.

OWNERS OF LAND AND PROPERTY WITHIN THE AREA OF THE MOSQUE WERE COMPENSATED AT THE RATE OF APPROXIMATELY ONE HUNDRED GOLD PIECES (DINARS) PER SQUARE METER (25 DINARS/ SQUARE CUBIT); WHILST THOSE WITH LAND AND PROPERTY AT A DISTANCE FROM THE MOSQUE, IN THE WADI (VALLEY) AREA, WERE PAID SIXTY GOLD PIECES FOR PER SQUARE METRE (15 DINARS/ SQUARE CUBIT) FN17.

THESE PAYOUTS WERE CONSIDERED ENORMOUS [HUGE SUMS] AT THE TIME, AND WERE DEEMED NECESSARY TO REFLECT, NOT ONLY THE MARKET VALUE OF THE LAND, BUT ALSO THE ADDITIONAL COMPENSATION DUE FOR THE LOSS OF THE PRIZED NEARNESS TO THE MOSQUE. FOR SOME OWNERS, THE MARKET PRICE ALONE WOULD ALONE WOULD NOT HAVE BEEN SUFFICIENT TO CONVINCE THEM TO SELL, IN A CLIMATE WHEN OTHER LAND IN THE AREA WAS ALMOST IMPOSSIBLE TO ACQUIRE, AND THE ONLY REALISTIC OPTION OF RELOCATING WOULD HAVE BEEN AT THE PERIPHERY OF THE SETTLEMENT.

FN17. AL-AZRAQI, AKHBAR MAKKAH, 1398/1978, VOL. II, P. 74.

[He bought and demolished large numbers of properties and ]] paid owners at the rate of approximately one hundred gold pieces (dinars) for every square metre in the mosque area (25 dinars/ square cubit); and sixty gold pieces for every square metre in the wadi (vallley) area (15 dinars/ square cubit) fn17. These were considered huge sums at the time, and were deemed necessary to reflect, not only the market value of the land, but also the additional compensation due for the loss of the prized nearness to the gm. For some owners, the market price alone would alone would not have been sufficient to convince them to sell, in a climate when other land in the area was almost impossible to acquire, and the only realistic option of relocating would have been at the periphery of the settlement.

FN17. Al-Azraqi, Akhbar Makkah, 1398/1978, vol. II, p. 74.

A more extensive renovation took place under the Abbasid caliph al-Mahdī (775–785),

The largest expansion project of this era was ordered sometime around the year 783 by third Abbasid caliph, Mohammed Al-Mahdi, who expanded the Grand Mosque after acquiring neighboring houses and demolishing them.
He died in 785, before the project was completed, so his son and successor as caliph, Musa, took over supervision of the project, which increased the size of the mosque by 12,512 square meters.

One of the features exhibited by Mecca’s property market today is the high degree of

differentiation in values. However, Al-mahd’s purchases demonstrate that the same phenomenon

was evident in ??ah. The 40% in the wadi, the periphery of the old …, highlights the sharp

differences in the mean value of properties between streets and areas,

it was found that the Holy Mosque represents the central function around which land

values as well as housing costs decline with increasing distance from the centre.

2) Quite expectedly, these immigrants built their homes as close to the mosque as they could. When Saudi Arabia undertook the urban redevelopment of the city, many Fatanis amassed a fortune from the sale of their lands, which were acquired by the authorities to make way for infrastructure development; some became millionaires.

one hundred gold pieces (dinars) for every square metre in the mosque area (25 dinars/ square cubit); and sixty gold pieces for every square metre in the wadi (vallley) area (15 dinars/ square cubit)

However, Al-mahd’s purchases demonstrate that the same phenomenon

was evident in ??ah. The 40% in the wadi, the periphery of the old …, highlights the sharp

differences in the mean value of properties between streets and areas,

it was found that the Holy Mosque represents the central function around which land

values as well as housing costs decline with increasing distance from the centre.

The owners of the expropriated properties were given compensation generally ranging between 450,000 and 550,000 Saudi riyals per square metre.

A general court was appointed to set the compensation rate for each individual piece of the real estate, whether land, buildings, or remains. Value estimation was conducted according to a set mechanism that took into account factors such as location, proximity to the Grand Mosque, and whether the land is mountainous of flat.The judge issued a ruling with a percentage that ranges between 25 to 75 percent.

.

compensation has been disbursed

Average exchange rate in 2010: 0.2667 USD

The UAE’s English-language daily The National said in a report that the estimated construction cost was USD 26.6 billion (around Rs 1.8 lakh crore) and that the government paid another USD 35.5 billion (around Rs 2.41 lakh crore) to landowners as compensation for the projects. 

https://www.lifestyleasia.com/ind/living/real-estate/most-expensive-buildings-around-the-world/

The Saudi government is said to have paid a further $35.5bn in compensation to landowners to make way for the projects.

https://www.thenationalnews.com/business/property/king-salman-launches-five-projects-at-grand-mosque-in-mecca-1.612283

Jul 21, 2017

Compensation for demolished buildings around Haram delayed

25 August 2013

https://www.arabnews.com/node/462407/amp

An official working on the project to develop the surrounding areas of the Grand Mosque at Makkah has said SR30 billion of the SR90 billion owed in compensation to former property owners has not been paid out.
“Since 2009, SR60 billion has been paid out in four stages. 

 “The matter is with the general court. It decides whether to pay compensation for real estate, whether land, buildings or remains. Bakir Pasha Awqaf is a legitimate issue and the judge issues a ruling with a percentage that ranges between 25 to 75 percent,” he added.
“The highest rate of compensation was paid for an apartment building in the Ajyad province opposite Al-Safwah Tower, at SR 600,000 per square meter, followed by a neighbouring building with a value of 550,000 per square meter. The remainder of compensation, which began in the Al-Zawawi building in Al-Bab through to the Al-Masfalah province, reached SR 450,000 per square meter,” he said.
Qattan said the lowest rate of compensation for removed property was given for a house at the top of a mountain in the Al-Hajour province. Value estimation is conducted according to a certain mechanism and takes into account many factors such as location, proximity to the Grand Mosque and whether the land is mountainous of flat.

Compensation fixed for Haram Mosque's southern courtyard expansion

Demolition work to begin after compensation has been disbursed

March 22, 2010

As part of expansion work on the Haram Mosque in Makkah, residential and commercial buildings and real estates on a total area of 1,500 sq. metres will be expropriated.
 
This area, consisting of eight various sites, will be added to the southern courtyard of the holiest mosque in Islam, close to its main entrance of King Abdul Aziz Gate.

Demolition work will begin after compensation has been disbursed, said the chairman of the Committee of Projects for the Expansion of Haram Courtyards.

Committee chairman Abbas Qattan said that owners of the expropriated real estates will be given compensation ranging between 450,000 and 550,000 Saudi riyals per square metre.