Real Estate Online - Project Brief

zia@milestonevision.com http://www.ventureart.biz/ 1

• The potential business is setting up
of Real e Estate Brokerage Firm
• The target market for which is
Kuwaiti Nationals specially within
rental business
• High net worth Expatriate Individuals
and Families

Basis of Business
• At present in the Kuwaiti market there
are no specialized services catering to
the needs of the young Kuwaiti looking
for their first apartment
• Offering to other clients who are:
 High end expatriate coming to Kuwait
 All other Kuwaiti professionals
 Expatriate professionals
zia@milestonevision.com
http://www.ventureart.biz/ 3

• The very basic fundamental for
the real estate brokerage
business will be provide
• Live in experience to the clients
where in they feel it as one of
their owned apartment
• Providing apartments with
customized solutions as the need
of the customers

• Offering real estate services over the internet and
telecommunication
• This can achieved by using a variety of search
engine tie-ups with international partners in web
based real estate services
• The web services will include:
 Locating residential, investment and commercial
properties in the region either it is for sale or rental
 Requirement being number of bedrooms and rest
room
 Type of building – house, row house, duplex,
apartment, special purpose, residential commercial
mix
 Ownership title – freehold, condo/ strata/ timeshare /
fractional, leasehold
• Standard Legal real estate contracts
• Connecting with the sellers and buyers interface
• Map wise location search and images of the
property to be rented of purchased

• Kuwait is a small, rich, relatively open economy with
self-reported crude oil reserves of about 104 billion
barrels - 8% of world reserves
• Petroleum accounts for nearly half of GDP, 95% of
export revenues, and 80% of government income
• Kuwait experienced rapid economic growth over the
last several years on the back of high oil prices and
in 2008 posted its tenth consecutive budget surplus
• The drop in oil prices in late 2008 has reduced
Kuwait's fiscal surplus in 2009. The global financial
crisis may slow the pace of investment and
development projects, but Kuwait has vowed to use
its considerable financial resources to stabilize the
economy
Economic Overview

• Driving this expansion is the growing young local
population and a significant influx of expatriates as a
result of increased corporate activity
• The sector is also benefiting from the robust
economic growth and high per capita disposable
income. Ample liquidity has resulted in significant
investment in the sector as well
• Changes in laws relating to construction of
commercial properties have resulted in a slew of
ongoing projects
• Residential township projects worth KD 49.5 billion
and infrastructure projects worth KD 11.6 billion are
expected to be completed with in next 5 years

Project Value(KWD mn)
1. Silk City 25,000
2. Railroad System 4,000
3. College City in Shadadiya 1,597
4. Boubyan Island Development 1,500
5. Northern Gas Turbine Station 1,430
6. Jaber Al-Ahmed Bridge 1,036
7. Mutlaa Residential City 890
8. Boubyan Port Development 872
9. Khiran Residential City 424
10. Kuwait International Airport 329

• Kuwait is one of the world's top producers and net exporters of oil.
• Kuwait holds the world's sixth largest oil reserves and is one of the
top ten global producers and exporters of total petroleum liquids.
• Kuwait Petroleum Corporation, Kuwait's national oil company, and
its subsidiaries control the entire oil sector from upstream to
downstream and exports.
• Kuwait has implemented enhanced oil recovery measures to boost
stagnant production rates. New discoveries have been made, but
Kuwait's regulated oil sector hinders further exploration and
production.
• In an otherwise nationalized oil sector, Project Kuwait attempts to
incentivize foreign investment to bring production capacity to 4
million bbl/d by 2020.
• Territorial dispute between Kuwait and Saudi Arabia led to the
creation of the Partitioned Neutral Zone. Both countries divide
equally the production of oil and gas in the zone.

• Kuwait's domestic consumption has been increasing, but a majority
of its production heads to Asia.
• Kuwait has recently become a net importer of natural gas, leading
the country to focus more on natural gas exploration and
development for domestic consumption.
• Kuwait's gas sector is also managed by the Kuwait Petroleum
Corporation.
• Kuwait plans to increase gas production to 4 billion cubic feet per
day by 2030 in efforts to satisfy domestic consumption and decrease
imports of LNG.
• Kuwait's electric sector capacity has been extremely slow to expand
despite rapidly rising consumption rates over the past decade and
persistent power shortages during peak demand periods.
• Facing rising electricity demand, the Gulf Cooperation Council,
comprised of six Gulf countries, is developing an interconnected
power grid.

• With a population of just 3.8m, the Kuwaiti
market is relatively small in global terms.
However, abundant oil wealth means that
Kuwaiti nationals, who comprise about
1.1m or one-third of the population, tend to
be comparatively wealthy, enjoying
comfortable salaries and pensions. At an
estimated US$45,900 in 2014.

Oil and Gas – Kuwait's Shinning
Sector with more 100 Billion KD
Projects in Next 5 Years

Kuwait – The Future of Middle East.
Opportunities Unlimited

Kuwait Demographics
Total Male Female
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
-
Kuwaiti 1,242,499 610,545 631,954
Non Kuwaiti 2,722,645 1,772,413 950,232
Total 3,965,144 2,382,958 1,582,186
zia@milestonevision.(Estimates as of Decc o2m008 est.) http://www.ventureart.biz/ 14

Marriages
• Marriages occurred of Kuwaiti nationals: 11,395
• Most of the Kuwaiti couples upon there marriage
seek new residential location for there future
settlement as well
• Expats marriages in the Kuwait are also substantial
in number
• Most of the people getting married seek new
residential accommodation after marriage
• New marriage are likely to increase every year and
the requirement will be increasing too as well

253,800
232,579
260,000
255,000
250,000
245,000
240,000
235,000
230,000
225,000
220,000
Families
Kuwaiti Non Kuwaiti
Families

Government Sector
Employment
Total Male
Femal
e
250,000
200,000
150,000
100,000
50,000
-
Kuwaiti 229,161 104,855 124,306
Non Kuwaiti 84,328 50,705 33,623
Private Sector Employment
Total Male
Fema
le
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
-
Kuwaiti 61,890 28,611 33,279
Non Kuwaiti 1,159,98 1,065,18 94,804
Total 1,535,36 1,249,35 286,012

• The Kuwaiti government expenditure is likely to
propel domestic demand as a whole, which will
percolate down to the various economic sectors,
and in turn, will contribute to a higher GDP. Taking
this in account, we actually observe something very
different while analyzing the trend of government
expenditure as percentage of nominal GDP.
• The Kuwaiti real Estate Sector comprises of 3
specific segments
 Residential segment
 Investment segment
 Commercial segment

Residential segment
• This segment is comprised primarily of houses, a significant
number of which is supposed to be allocated under the
national housing scheme. This being preferred form of
housing for Kuwaitis, it is the most important segment in
terms of the housing requirements of Kuwaiti nationals
Investment Segment
• The investment segment is comprised primarily of land
purchases and the construction of residential apartments for
rent. The investment segment is important due to Kuwaiti’s
significant expatriate population. Since the segment of
population cannot, by law, buy properties, all the housing
needs of this section of society are fulfilled by the investment
property segment. Construction usually takes the form of high
rise apartment buildings and differ from the residential
segment in that the end user is a tenant and not an owner,
the prime investment areas in urban Kuwait are Salmiya,
Hawally and Jabariya

Commercial Segment
• It is involved with construction of commercial
complexes and sale or rent of spaces in commercial
complexes for office and retail establishments,
parking space
• Commercial spaces provide yielding high rental rates
and property price appreciation. The main
commercial areas in Kuwait are Kuwait City, Sharq,
Farwaniya, Hawally and parts of Salmiya
• Law governing high rise construction in Kuwait have
changed significantly over the years. At present
government allowed 100 floor construction

31%
7%
62%
Residential
Investment
Commercial
zia@milestonevision.co
m
http://www.ventureart.biz/
21

• The growth in residential homes registered with
the public authority for civil information grew by
a modest 1.8% in June 2007, to 133,832,
compared to 131,504 one year before. however,
the growth in apartment units was healthy, at
6.9%, reaching 232,668 in June 2007,
compared to 217,648 in June 2006. houses and
apartments grew at a five-year CAGR of 2% and
5.7%, respectively
• Worth mentioning is the fact that vacancy rates
for both houses and apartments decreased
marginally, to 16.8% and 36.8%, respectively, in
June 2007, compared to 17.9% and 37% in
June 2006

• There is a gap between the requests submitted
and distributed units has decreased, but it is still
quite large. this depicts to us that there is a
large number of Kuwaiti’s who will be seeking
the real estate services for their houses

• Rental rates for residential properties have gone up
steadily, from KD1.49 per sq.m in 2001 to KD 2.01
per sq.m in 2006
• Prices have escalated to an all time high of KD 298
per sq.m in 2006. prices have more than doubled in
the last 12 years, from KD 148 per sq.m in 1995 to
the current levels
Residential Properties

• Township and housing projects worth
KD 49.5 billion are expected to be
completed in the near future

Kuwaiti Clientele Market
• Kuwaiti nationals have specific needs to their first and
long term houses these needs varies from different
criteria like:
• Locality
 Kuwaiti nationals prefer to be located in a existing Kuwaiti
locality (society) the location of these some well known
sites are Salwa, Rumaithiya, Bayan, Mishref, Faiha,
Kaifan etc.
• Access to market
 People prefer to have their houses close to the market
where they can buy their daily necessities items for the
family
• Near to office / work place
• Nearness to school for child education
• Nearness to utility services site

• Expat customers have needs based on following
aspect
• Sufficient space for each member
• Closeness to office/ work space
• Locality near by where friends are residing
• Close to community gathering and centres
• Nearness to cross cultural access of community
• Circles where children and family member can get
to gather and be close to educational institutes
• Availability of parking space
• Privacy for family
• Good neighbourhood
• Access to Medical / Health centres

• Providing of specialized customised needs in
the real estate sector
• Offering real estate requirement as per clients
need i.e. size of rooms, number of rooms
• Location based requirement of client as sea
view, nearness to education / training centre /
work location / community
• Furnished and unfurnished apartment
• Short term and long term stay requirements
• Price consideration

• Phase II
 Introducing web enabled services for Kuwait Market
• Phase III
 Entering the other GCC states
 Along with Web Enabled services
• Phase IV
 Entering developing economies like India and the Far East,
MENA

• Introduction of web enabled services in the Kuwaiti Market
• Providing faster and customised search of requested
property in desired location
• The service will provide map based search and type of
apartment categories
• Faster access to clients and easy to understand their
requirement leading to repeatedly improve services
• Track rent received, tenant information, and leases
• Professional categorized property listing
• Multi-images viewing in the results page
• An option to add to favorites
• Project architecture makes possible per-customer
customizations
• Run statistic reports to get some interesting facts about
your properties

• Setting up a conglomerate with the real estate
brokers in the remaining 5 countries
• Setup of offices in the region one by one in
planned and phased manner
• Developing a back end web search engine
connected with other portals providing refined
results
• Dealing with major real estate developers,
architects and interior designers who enable
to make custom made design for the clients
• Making presence felt by marketing tools and
communication media

• Entering the MENA region market with the
introduction of web services
• In the second stage with phase IV reaching the
wide markets in the Asia and Far East region
• These are high potential markets as having
ever growing demands for customised services
• The region lacks a professional customized
provider, there is sufficient gap and scope for
rendering services

Dr. Zia Ahmed
“Ethical, Transparent and Sustainable”
http://ventureart.biz/

Real Estate Online - Project Brief

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