The real estate situation now, with competition and increased offers, and advertising laws, puts companies and real estate offices in a state of confusion, facing very harsh challenges. This stage is one of the worst stages that Saudi real estate history has gone through, and the prosperity and activity in the free time of those cooperating in the real estate field has gone, and this also made matters worse by their distancing themselves, due to the weakness of the implemented operations.
We find that the conflict now in those companies revolves around how to obtain a net operating profit, by increasing revenues, on the one hand, and reducing expenses, on the other hand. Herein lies the difficult equation in the budget, and the hit from both sides is annoying. So how can revenues be increased with a weak market, and supply be increased with the crisis of requirements on commercial shops, such as parking, Saudization, fees, and others? On the other hand, how can expenses be reduced, with the application of sales and rental taxes, along with the rising costs of electricity, water, maintenance and cleaning, in addition to the costs of vacant units, and debts due to poor collection and delayed payment? Here we find that the possible solutions for reducing expenses are very limited. As for the other side, which is the revenues, it has solutions that are available and possible at the same time, such as intensifying marketing services, such as the necessary advertising and media campaigns and help in spreading and other means that achieve the goals and overcome the competitor in the market, and reach the target segment in the shortest ways and at the right time. Also among the solutions in this side is maintaining the occupancy rate, by reducing rents, or giving a longer grace period to the new tenant, or by making special offers to encourage annual payment in advance.
Such solutions for boosting sales and revenue are consistently adopted by the world's largest marketing companies; therefore, promotion is a fundamental component of the four elements of marketing.
4Ps Product Product , Pricing Price , Promotion , Distribution Any weakness in marketing operations means weakness in sales, and this is where the danger begins, and the red line appears in any establishment.
In conclusion, we remind the owners that any delay in marketing and in offering real estate products, whether plans or units, especially those far from city centers, is not in their best interest if the foundation is based on a future outlook, especially in the next few years.
We saw in the real estate market that those who launched their products at the beginning of the crisis were luckier than the late property owners, as the inflation rate and liquidity weaken and it takes years to reach equilibrium, so the cessation or weakness of asset growth is a loss for the investor.
