This being the first year of operation in the financial and mortgage industry, SISCO has developed its own customer base, thus cultivating its own niche market. An aggressive marketing will however lead to a growth of its customer base, thus making its presence widely known in Jeddah.
SISCO's core business shall be the supply of financial services to both individuals and business owners, who have interests in the mortgage and property development industry. Following a study of the target market, the information acquired will hence help the company to better serve the needs of the customers.
The kingdom is witnessing a change in demographics of home development. Previously, individuals build at least 98 percent of the homes, whereas developers only handled the remaining 2 percent. The trend is however rapidly changing owing to a drastic rise in both the building materials, and a corresponding increase in development cost
The sector is bound to witness a rapid growth, and which will continue onto the following year. This saw investment into real estate increasing by more than two folds by the end of 2007. This review, which was provided by the Global Investment House, also reported of an annual growth in the sector of 115.9 percent, and which now stands at SAR 100.4 billion. In almost all the segments in this market, demand almost always surpasses supply. While this trend is expected to hold in coming years, real estate prices, as well as rental will more than likely remain buoyant.
9. Market trends:
The real estate market in Saudi Arabia has remained buoyant, thanks to the availability of sustainable demand. As long as there is an economic expansion, there will be a resultant creation of investment opportunities in the region. Demand will thus continue picking up, fuelled by an influx of increased rates. In addition, population growth in the kingdom has been forecasted to continue growing annually at a rate of 2.5 percent, to reach 25.66 million at the end of 2009. At the same time, there shall be a decline in the average house hold size from 5.5 to 5.2 persons for the periods 2005-2009. This will in turn lead to a corresponding increase in housing demand, which has been estimated to be at 1 million units by the end of the same period. This translates into an increase of 200,000 units per year on average. Jeddah is also witnessing a growing trend, in which high rise and luxurious apartment are being designed and developed by real estate developers of repute (Parker 2007).
10. Market needs:
There is a dire need to supply over 200,000 housing units per year. In order to achieve this, a total of 280 million square meters of land is needed. Further, SAR 500 billion needs to be invested in the sector to be able to construct the 1 million housing units. In order to quench this thirst for housing units, the availability of sufficient financial mechanisms are needed (Parker 2007).
11. SWOT Analysis:
This is a description of the company's strengths, weaknesses, threats and