2022
Real Estate Investment and Development Company
Marketing plan
Prepared by:
Eng. Eissa Mohammed Alesayi
Supervisor:
Dr. Nezar Alsamhi
Executive summary
Real estate marketing is one of the marketing activities aimed at transferring ownership of real
estate or renting it, knowing the current and future needs of the population, and working to
meet them.
Real estate marketing deals with a product that is characterized by the importance and
specificity that distinguishes it from other marketing products, which makes it unique in some
features and characteristics, including: its reliance on the transaction method in pricing,
personal selling in promotion, and the need for this product to have an official (governmental)
agency to confirm the sale and purchase transaction. , to preserve the rights of the parties to
the transaction, and so on.
This research intend to build a marketing plan for real estate investement and development
company.
The plan included several axes or parts. The first included studying the real estate market and
analyzing the needs necessary for growth, as well as dividing the real estate market, analyzing
competitors and offering services provided, as well as analyzing strengths, weaknesses,
opportunities, threats, success factors for investment and real estate development, and critical
issues in this sector, while the second was devoted To the appropriate marketing strategy and
marketing objectives, whether for the citizen or the state, and the third was devoted to
marketing methods to be taken (the real estate marketing mix), and concluded with
marketing research and ways to evaluate marketing performance.
1. Situation analysis
1.1 Market summary
Due to many factors, most notably the inconsistency in the currency rate, Riyadh's procedures
against expatriates, and the stability and security of the capital, the real estate market is the
safe destination for Yemenis' savings...
The real estate market in the capital, Sana'a, has been paralyzed since the beginning of the
military and economic aggression against the homeland on March 26, 2015. After that, the
capital, Sana'a, witnessed a great recovery in the real estate market since 2017 and is still
continuing today, despite the economic war on the homeland and the deterioration of the
economic situation.
However, this particular movement in the sale and purchase of real estate in Sana'a, the
capital and the governorate, has been witnessing fluctuations and relative stagnation for
months, after years of recovery, following the issuance of new decisions by the Ministry of
Justice in the National Salvation Government regarding the approved legal trustees.
It is clear to everyone that the real estate market in the capital, Sana'a, is flourishing through
the high prices of lands, houses and apartments, and the large number of newly constructed
buildings and others that are still under construction.
Escaping from savings in banks to fencing lands and constructing buildings
The reason for the boom in the real estate market is people's fear of putting their financial
savings in banks, because they suffer a lot when they withdraw them, and the banks justify
their obstacles with a lack of liquidity and orders from the authorities.
The real estate market represents a safe haven for many citizens and owners of money, so they
rush to buy lands and buildings to invest them, and thus reap much more profits than those
they used to make from their deposits in banks. Some of those who go to the real estate
market buy lands and fence them only and not construct buildings in them. He left it for a
period of time, then offered it for sale and made profits in the millions, meaning that they
saved their money in the real estate market, and when they wanted it, they reaped huge
profits on top of it.
Sana'a's housing crisis due to the displaced has revived investment in real estate
Another reason that contributed to the revival of real estate and the increase in its prices is the
large number of displaced people from the governorates to the capital, Sana'a.
Economists at the Faculty of Commerce at Sana'a University say that Sana'a was not suffering
from a crowded population before Saudi Arabia and its alliance launched aggression against
the homeland. Now, it suffers from severe overcrowding due to the large number of displaced
persons from various governorates.
Economists assert that overpopulation resulted in a housing crisis, and the capital, Sana'a,
became in need of many buildings to house newcomers, which prompted many capitals and
merchants to invest in the real estate market, so buildings began to rise and land prices
jumped dramatically, and yet there is still a housing crisis. The evidence is the high rental
prices for apartments and houses.
Real estate offices located in the main areas within the capital have stopped their work in the
recent period, due to the fullness of apartments and houses, the exaggerated increase in land
prices by more than 400%, and the lack of land in which investors can construct buildings to
accommodate new residents, and this is available in the areas located on the outskirts of the
capital, Therefore, "you will notice a great boom in the sale and purchase of land, and a large
number of buildings that are still under construction."
The security and stability of Sana'a prompted expatriates to invest their money in its real
estate
In the past two years, Riyadh has issued a number of unfair decisions against expatriates,
especially Yemenis, and imposed on their money procedures similar to a process of looting
what they earn from the sweat of their brows, and paying it into the treasury of aggression
against their homeland, which prompted many of them to smuggle their savings that they
earned during the years and invest them In the real estate market within the capital Sana'a
and the governorates under the control of the Supreme Political Council.
Currency price inconsistencies make real estate a safe haven for investors
Economists assert that the currency discrepancy is a major reason for the real estate boom and
its high prices, as those who have money in foreign currency fear a sudden drop in it, and
therefore take advantage of its current rise to buy plots of land with it, because investment in
this aspect turned out to be completely unbreakable in Yemen Especially in Sana’a, despite the
aggression and the blockade, the real estate market is on fire and 400% more than before.
On the other hand, those who have money in the local currency also rushed to invest in the
purchase of land and the construction of buildings, for fear of the deterioration of the
currency more than the current time.
The suffering continues in the absence of the construction of giant residential neighborhoods
and not random buildings and buildings that are inadequate for the purpose.
When we met with many citizens to talk about the real estate boom, all of them complained
that the competition of capital owners to buy land and houses contributed to raising their
prices, which made it impossible for the simple citizen to obtain a small piece of land on
which to build a house for his children away from the threats of landlords.
The rise in apartment rents is equal to the rise in land and building prices, i.e. by 300%. An
apartment whose rent was 30,000 riyals per month today is rented at 90,000 riyals.
As I mentioned above, the reason for the rise in apartment rents is the housing crisis taking
place in the capital, Sana'a, due to the large displacement to it, as the owners of offices and
contractors confirmed that this crisis will not be relieved except through the construction of
new residential neighborhoods, and not random buildings and buildings that do not meet the
purpose.
There were great opportunities to attract billions of dollars to Sana'a, which is suffering today
from a suffocating housing crisis as a result of illegal procedures that do not encourage
investment in this sector, by the influential people during the era of the previous regime by
seizing and stealing lands belonging to investors and citizens.
Needs:
• Mechanisms for regulating and monitoring the real estate market.
• Real estate valuation law and guide.
• Real Estate Rental Standards Act.
• Standards for allocating state property for infrastructure services.
• Enhancing real estate security and facilitating citizens' access to adequate housing.
Real estate marketing deals with a product that distinguishes it from other marketing products
and the need for this product to have an official (governmental) agency to confirm the sale
and purchase transaction (registration) and control in land and urban planning.
Suggestions:
An urban development strategy that includes a real estate policy, a housing policy, and the
reduction of urban sprawl on agricultural land and Solving the problems of slums.......etc.
Solutions:
• Establishment of a real estate investment and development company affiliated to the
General Authority for Land, Survey and Urban Planning.
• Preparing a strategic plan for the company.
• Preparing an integrated marketing plan.
1.1.1 Market segmentation
There are only a few real estate products capable of satisfying the needs and desires of all
customers in a market, so not all customers have the desire or willingness to pay money to
obtain the same products, and due to the disparity and different customer markets, some of
them want luxury housing (palaces and villas) and some of them want economic housing and
so on. The real estate investment and development company satisfies the needs and desires of
customers, as it requires marketers and offers different offers for their products and targets
various groups of customers who make up the market.
Market segmentation divides a market into well-defined slices.
A market segment consists of a group of customers who share a similar set of needs and wants.
The major segmentation variables—geographic, demographic, psychographic, and behavioral
Geographic Segmentation:
By dividing the market into geographical units (Governorates, districts, neighborhoods, lanes).
Demographic Segmentation:
By dividing the market according to Income.
Psychological Segmentation:
To better understand consumers, Buyers within the same demographic group, Buyers are
divided into groups on the basis of psychological/personality lifestyle.
Behavioral Segmentation:
By dividing buyers into groups on the basis of their attitude toward, use of, or response to a
product regarding of needs and benefits (some benefits from it, Some buy for passion, Some
for copying others, some for feeling real needs)
1.1.2 Market needs
real estate investment and development company will provide:
• A diverse housing offer that responds to different social groups.
• Facilitating citizens' access to adequate housing.
The company seeks to fulfill the following benefits that are important to its customers:
• Safe and stable real estate ownership free of problems.
• Adequate housing in planned areas, formal urban planning, far from slums.
• Adequate housing with all basic infrastructure and services, including education, health
and other facilities.
1.1.3 Market growth
If there is an official government agency that undertakes real estate development projects,
there will be a revolution in urbanization. This will enhance people's confidence in real estate
investment, and growth in the real estate field will increase steadily and with positive steps
away from randomness and property problems.
1.2 SOWT analysis
1.2.1 Strengths
Since the company is affiliated to the General Authority for Lands, Survey and Urban
Planning organizationally, this gives the company many advantages:
1. Priority in investing state lands to serve development purposes.
2. Choosing the best sites to suit the use of lands within the plans.
3. Selection of planned sites or planning of selected sites at the highest level due to the
availability of the concerned staff.
4. Providing engineering, design and marketing consultations regarding places and prices.
5. From the legal side, the company will provide real estate security because it has the
necessary expertise and qualifications to verify ownership and secure possession.
1.2.2 Weaknesses
1. The absence of a comprehensive inventory of private state lands and real estate (owned
by ownership documents).
2. The assault and appropriation of most of the state's private lands and real estate by
property agents and tenants, and their refusal to give it up except for exorbitant sums
according to custom, right (naughty).
3. The lack of clarity of the laws defining the state's ownership of public lands from the
teenager and the like of great fluids, beaches, etc., and their contradiction with
customary and tribal provisions.
4. Lack of confidence in the state as a result of the bad reputation accumulated in the
minds and minds of the people.
1.2.3 Opportunities
1. Partnership with various government agencies, whether in securing land protection.
2. Partnership with government agencies in providing all infrastructure and basic services
for the sites selected for investment.
3. Partnership with the private sector and banks in financing investment projects.
4. Opening the door to investment for foreign capital to establish investment projects in
the country's lands.
5. Re-activation of the Housing Bank.
6. Establishing housing projects to provide housing for employees in installments.
1.2.4 Threats
1. Stop disposing of state lands and real estate in accordance with presidential
directives.
2. Not accepting the project idea from the government.
3. Fighting the idea of the project from the capital and the influential
monopolists of the real estate market.
4. Conflict with some laws (local authority law, investment law...etc).
5. The issuance of the new law regulating the profession of real estate offices was
delayed.
1.3 Competition
• Relevant government agencies (such as the Ministry of Public Works and Roads , the
Ministry of Local Administration, the General Authority for Investment) and other
ministries and government agencies such as the Ministry of Industry and Trade, the
Ministry of Tourism and the Social Fund for Development.
• Public, private and mixed companies such as investment and real estate development
companies
• Brokers (authenticators) specialized in the field of real estate marketing.
• Individuals.
1.4 Product & service offering
The company will offer various real estate products( selling, renting) the most important of
which are:
• Residential real estate (real estate for housing purposes, apartments, independent
houses, apartments, villas, Residential compounds, residential cities) and others.
• Commercial real estate (sales shops, commercial markets, hotels, summer houses,
stores and warehouses, parking lots, hospitals and schools, nurseries and kindergartens,
private universities, ..... and others).
• Industrial real estate (factories, workshops, etc).
• Agricultural real estate (farms, orchards, poultry farms, livestock farms, fish farms,
nurseries, etc).
The company also will offer various real estate services such as:
• Providing marketing consultations in the field of prices, choosing the best sites, and
others.
• Providing engineering, planning and design consultancy.
✓ The residential purpose calls for the potential buyer or lessor to search and compare
for a relatively long period of time, before making a decision to buy or rent, especially
when suitable alternatives are available, taking into account: location, prices,
availability of appropriate necessary services, distance from noise, traffic, hustle and
bustle. Factories, sources of environmental pollution, and so on.
✓ As for economic purposes: they invite the buyer or the lessor to choose the property
that is expected to generate the best or most profits, so he chooses the best commercial
or industrial sites, according to the type of economic activity he wishes to practice, if
he desires to establish an industrial company, or a large store similar to ( large malls),
it is preferable to go out to the outskirts of cities, where land prices are low, cheap
rents, wide spaces, parking spaces, ease of transportation, lack of traffic, and low costs.
✓ But if the desire of the buyer or the real estate lessor is limited to small or medium
shops, then he may find what he needs in the main markets of cities, commercial
streets, commercial and industrial complexes, or those distributed in residential
neighborhoods spread throughout the country. Here, the expectations of buyers or
lessors to obtain profits play a decisive and influencing role in making the decision to
buy or rent.
✓ As for the choice of sites for religious places of worship, it is subject to the donations of
benefactors from the citizens of the city, or the residential neighborhoods, and the
extent of the population’s need for this or that type of this real estate.
✓ As for the official educational real estate, the state determines its locations in cities and
neighborhoods since its planning or demarcation. As for the real estate designated for
private education, it may be built or rented according to certain considerations, the
most important of which are: - The prices of real estate available for sale or rent, the
extent to which competing educational institutions are located in the same location Or
the nearby locations, the possibilities of demand in the chosen location, the ease of
transportation, the availability of services, the ease of obtaining real estate, and so on.
1.5 Key to success
1. The keys to success are designing andofferingproducts that meet market demand .
2. Identifying the current and future needs of the population for real estate of all kinds
(residential, commercial, industrial, agricultural ,.....etc.) and working to satisfy them in
the appropriate time and place as much as possible in light of the society's trends,
customs, and traditions, and the various regulations and laws set by the state to
regulate the real estate market.
3. In addition, The company must ensure total customer satisfaction.
If these keys to success are achieved, it will become a profitable, sustainable company .
1.6 Critical issues
1. Establish itself as the premier Real estate development company.
2. Creating a distinct brand in the real estate sector and improving its reputation.
3. Assisting the government in bridging the housing gap and solving the problems of
random construction.
4. Constantly monitor customer satisfaction.
2. Marketing strategy
The key to the marketing strategy is focusing on Real estate product development, increasing
real estate products according to demand, and diversifying real estate products.
In order to raise the efficiency and effectiveness of the real estate marketing strategy, the real
estate marketer must not focus only on separate products and their real estate markets. There
is a need to take into account each product and each market within a comprehensive
framework.
2.1 Mission
Achieving the maximum benefit from the lands and real estate of the state and making
optimal use of it, eliminating real estate speculation, creating a suitable environment to attract
investment, developing the republic’s urban areas, and establishing real estate projects to solve
the problems of housing and random construction.
2.2 Marketing objectives
1. To Maximize competitiveness throughstrong growth each year, efficient production
and selling at premium prices to the target market.
2. To improve reputation, creating a positive impression, and achieving consumer
satisfaction from the first year.
3. To plan and act to satisfy continuity, and to achieve a steady increase in market
penetration.
2.3 Financial objectives
1. To Maximize profits and market share 5 percent per year for the first five years.
2. To develop research and development budget as a percentage relative to revenues.
2.4 Target markets
With an expected local real estate sector market of 50,000 people in the capital, Sana'a, which
is constantly increasing.
The company aims to expand this market by advertising and promoting real estate
development projects targeting all social groups, and we expect the target market to reach
500,000 people.
The company also aims to expand the market by entering the markets of new governorates
after the first year of establishment by targeting the governorates of Ibb and Al Hudaydah,
and then expanding to the rest of the governorates after the second year.
2.5 Positioning
The company will position itself as the premier in real estate investment and development
market. This positioning will be achieved by leveraging the company competitive edge: staff
experience and land ownership.
3. Marketing tactics
The objective of the marketing program is to position the company as the premier real estate
investment and development company, serving the domestic market .
The marketing program will seek to first create customer awareness concerning the offered
products and services and then develop the customer base. Specifically, the company
marketing program is composed of the following approaches to product, prices, people,
process, place, physical environment, and promotion.
3.1 product
The real estate product is not just a house, residential building, commercial or industrial store,
or others, but also includes the location (place), interior and exterior design, proximity to
markets, the availability of basic services in their location such as paved streets, sewers, water,
electricity, telephone lines, police stations, and others.
The company, with the staff it owns and who has experience for more than 15 years, is the
most capable of determining the needs and desires of the population when choosing the
locations of buildings and buildings, in terms of size, design and location, and providing the
necessary services. In partnership with government agencies, the company will pave main and
secondary roads, dig sewers, and provide electricity , extending telephone lines, and providing
potable water and other things before allocating real estate in its various types and forms, and
offering it for sale.
3.2 Price
The price policy of real estate products depends on a set of interrelated factors, the most
important of which are the following:
Location of the property, type of property, competition, standard of living for citizens, need
and urgency, cost, level of profits desired by sellers, goals, regulations and laws.
These and other factors combined greatly and effectively affect the buyer's decisions. The
location of the property in relation to the city center, its proximity and distance from it on the
one hand, and its location on one of the commercial streets, industrial complexes or narrow
side streets on the other hand has a clear impact on the price of the property, not to mention
the type of commercial property. Whether it was industrial or industrial, service or residential,
Existence and intensity of competition in the region (the availability of real estate in
quantities, qualities, and specifications that meet the needs of the market) and is in line with
the desires of citizens, their standard of living, and their financial and purchasing capabilities,
in addition to that the cost of production elements for real estate, including raw materials,
labor forces, and spaces suitable for the construction of real estate. The goals of sellers and
buyers come as one of the important factors in determining the prices of real estate offered for
sale or rent. The goal may be social, economic or political, supported by some regulations and
laws set by the state to determine the prices of various real estate for various purposes.
3.3 People
The company's employees play an important role in operations and production and form part
of the service. There is an interactive relationship between them and the consumer and an
impact on the general acceptance of the consumerand how to satisfy them.
The company will train all staff professionally on ways to deal with the consumer.
3.4 Process
The process of transferring real estate ownership from the company to the buyer directly, by
registering this process (the buying and selling process) in the competent authority, which is
(the General Authority for Lands, Survey and Urban Planning)
And because the company follows the authority administratively, it will complete all legal
procedures for real estate registration on behalf of the citizen without resorting to a real estate
broker or agent to relieve the citizen of friction with the government employee and his
exposure to extortion.
3.5 Place
The location of the real estate plays a very important role in increasing the demand for real
estate on the one hand, and in determining its price on the other hand, whether the real estate
is commercial, industrial, or residential. The buyer looks at the location of the real estate
strategically, and attaches great importance to it in the present and the future. The presence of
commercial real estate in a commercial area or in the city center or the main commercial
streets gives it an advantage over the rest of the real estate located in other places, in terms of
its ability to generate profits, and increase the demand for it by those involved in trade, and
the same is said about the presence of industrial real estate in complexes And industrial zones,
as it gives them special importance for industrial professionals, as is the case with real estate
designed for the purposes of providing various services.
The same applies to residential real estate, as the presence of these real estate in areas or
neighborhoods where the necessary services are available such as paved streets, sewers,
schools, places of worship, health institutions, internal public transport lines, bakeries,
commercial markets, and others. It gives it great importance for buyers and landlords, as this
site fulfills the needs and desires of the buyer, and pushes him to buy the property, unlike
neighborhoods that lack these services or some of them, where the buyer or landlord hesitates
about making a purchase or lease deal, and searches for the property that meets or satisfies his
needs and the aforementioned desires.
3.6 Physical Environment
The real estate product is subject to the influence of environmental changes like other
marketing products, as the political conditions that the country is going through, whether
internal or external political conflicts, stability or otherwise, directly or indirectly affect the
movement of demand for real estate products and their supply, and therefore their prices and
promotional mix.
In the case of political stability, the citizen enjoys peace of mind and rushes to invest in real
estate products and tries to satisfy his needs from this product, unlike the case if the state of
political instability worsens and the external or internal threat, the potential consumer tends
to keep his monetary capacity and not dispose of it until the situation clears up.
As for the economic conditions, they also directly affect the demand for real estate products in
the stages of the economic cycle, or what is called the business cycle. In the phases of
prosperity and prosperity, the demand for these and other products increases, and in the
phases of stagnation and recession, the demand for them decreases in line with the growth of
individual or family income and the increase or decrease in the purchasing power of
individuals.
As for the social conditions and factors that are related to the norms, traditions and social
values prevailing in society, such as keeping the family together in one house even after the
marriage of the children (values of large families), or the trend to fragmentation and leaving
the family after marriage, which has an impact on increasing the demand for products Real
estate, especially “apartments and residential land,” and this is also related to “the cultural and
civilized levels of society”.
3.7 Promotion
The company aims to introduce the target buyer to the real estate (product) and convince him
that it is consistent with his needs, desires and financial capabilities, and urge him to complete
the purchase or sale transaction.
The company will promote all its projects through the use of a promotional mix consisting of
the following elements:
▪ Advertising (TV's, Radio and journals).
▪ Personal selling.
▪ Social Media.
▪ public relations.
▪ Create a website and mobile application.
▪ Design CRM system.
The company will create an easy to use and informative website. This site will be the first stop
for people looking to learn about the company and browse its products. As well as designing a
mobile application for the company.
CRM Real Estate Customer Relationship Management
The company will design CRM software to allow it to seamlessly manage its real estate
business from a single platform both on-premises and on the road because the data is stored
in the cloud system.
4. Marketing Research
The company will benefit from the experiences of neighboring countries and successful
international experiences in market research by collecting data on the behavior and
characteristics of consumers of real estate products and collecting all inputs through surveys
when developing the marketing mix and seekingfeedback from consumers to develop
programs and evaluate marketing campaigns.
5. Controls
The purpose of the company marketing plan is to serve as a guide for the government.
The following areas will be monitored to gauge performance:
▪ Revenue: monthly and annual
▪ Expenses: monthly and annual
▪ Customer satisfaction
▪ New-product development