Market Research Report For Residential Compound - Khobar

MARKET RESEARCH REPORT
RESIDENTIAL COMPOUND
KHOBAR
KSA
Prepared For
MARKAZ
1
Draft Report
Date: 15/10/2015
Ref: WCE-426
M/S KUWAIT FINANCIAL CENTER - MARKAZ

Attn: Mr. ZIAD Al-MSANN
Khobar, Saudi Arabia
Subject: RESIDENTIAL COMPOUND MARKET RESEARCH IN KHOBAR, KSA
Dear Mr. Ahmad,
As per your request and approval, we hereby attach our residential compound market research report in Khobar city, Saudi Arabia
Issued without prejudice and liabilities
WHITE CUBES REAL ESTATE
Abdulaziz Mohammad
2
Feasibility Study – Draft Report
TABLE OF CONTENT
SECTION 1: SECTION 2: SECTION 3: SECTION 4:

KSA ECONOMIC OVERVIEW DEMOGRAPHIC ANALYSIS RESIDENTIAL COMPOUND SECTOR MARKET SAMPLES
PAGE: 4 PAGE: 10 PAGE: 17 PAGE: 25
SECTION 5:
MARKET & TENANT NEEDS SECTION 6: SECTION 7:
PAGE: 41 ANALYSIS OUTPUT CONCLUSION
PAGE: 56 PAGE: 68
3
KSA ECONOMIC
OVERVIEW
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Draft Report
KSA – ECONOMIC OVERVIEW
GDP & ECONOMIC GROWTH
Real GDP Growth Rate

According to official economic reports, the GDP growth rate remains
12.00%
almost stable since 2013 with expectation of 3.5% growth rate for 2015
10.00% 10.00%
8.00%
5.40%
By end of 2014, Trade & Services and Mining Sectors continues to 6.00%
4.80% 3.60%
dominate the Saudi economy by total of 80.6% it is also expected that the 4.00% 3.50%
manufacturing sector will increase by 2015 and 2016 especially were the 2.00% 1.80% 2.70%
development expansions in this sector continues aggressively in the 0.00%
market for the coming 5 years. 2009 2010 2011 2012 2013 2014 2015(F)
Agriculture, Petroleum , 2.50% Construction,

1.90% 5.50% GDP Increase / Capita
Manufacturing 25.00%
, 8.40% 19.14%
Mining, 20.00% 15.87%
39.50% 18.20% 21.80%
15.00%
11.61%
10.00%
7.19%
5.00%
Trade & 0.00%
Electricity,
Services, Base Line 2011 2012 2013 2014 2015(F) 2016(F)
Gas, Water,
41.10% 2010
1.20%
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Draft Report
MONETARY OUTLOOK
Money Supply & Inflation

The financial balance of Ksa expected to be very low in 2015 which was
15.00% 6.00%
due to high government spending and low revenues from oil compared to
5%
estimated budget. 10.00% 3.70% 4.00%
3.50%
4.10% 2.70%
On the other hand it is expected to have overall inflation rate in 2015 by 5.00% 2.90% 2% 2.00%
3.2%
0.00% 0.00%
2009 2010 2011 2012 2013 2014 2015(F)
IMPORTS 2014 EXPORT Money Supply Yearly Growth (M3) Average CPI
Others
Machineries & Others Chemicals 6%
Transport 22% 6% Plastic
43% 5%
Food & Minerals

Metal & Chemicals Livestock 83%
21% 14%
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Draft Report
OIL PRODUCTION
KSA has relatively produced high levels of oil in 2014 due to expansion in
PRODUCTION Vs EXPORTS
all sectors within the country.
4000
However the oil price drop led to almost 12% reduction in oil revenues
3500
through the year
3000
On the other hand, KSA crude oil exports decreased by 5.5% to 2.6 million
barrels.
2500
2000
1500
1000
500
0
2009 2010 2011 2012 2013 2014
Crude Oil Exports Crude Oil Production
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Draft Report
BUDGET INDICATORS
KSA BUDGET OF EXPANSION 2015(F) Spending By Sector

1.5 250
As an overall the budgeted 200
1 spending was very low 150
100
compared to what was actually 50
0.5 spent in 2014 and expected to 0
0 be by end of 2015.
2013 2014 2015(F)
-0.5 The government has overrun
Total Revenues Total Expinditure Overall Balance the budget spending caused by Billions
many sector expansions and
mega size development such
PERFORMANCE as Riyadh Metro, Un completed Actual Vs Budget Spending
60 King Abdullah Financial 1200
50 Districts, Housing Projects, 1000
40 Prince Noora University and 800
30 600
many others.
20 400
10 200
0
The majority o factual spending 0
2010 2011 2012 2013 2014 was for education and health 2011 2012 2013 2014 2015(F)
sectors.
Expenditure Revenues Actual Budget
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Draft Report
ECONOMIC KEY POINTS - KSA
Indicator 2015 2014 2013

AUG-2015 Jul-2015
Inflation Rate (2007 = Base point) 2.1 2.2 2.7 3.5
Average Oil Price(USD / Barrel) 46.5 54.9 97.2 106.5
Money Supply (M3) 7.0 8.3 11.9 10.9
Total Banking Sector Claims 8.4 8.6 11.3 12.6
Interbank Intrest Rate (3 Month) 0.825 0.775 0.936 0.953
Repo Rate (BP) 2.00 2.00 2.00 2.00
Reserve Repor Rate (BP) 0.25 0.25 0.25 0.25
General Share Price Index ( 1985 = Base Point) -32.2 -10.9 -2.40 25.5
Indicator 2015 2014 2013

Q2 – 2015 Q1 - 2015
GDP Rate at Constant Price (2010 = Base Point) 3.8 2.4 3.5 2.7
Indicator 2015 2014 2013

Q1 2015 Q4-2014
Current Account to GDP at Current Prices % -6.2 0.8 10.3 18.2
Total Imports (FOB) to GDP at Current Prices % 21.7 23.2 21.2 20.3
None – Oil Exports to GDP at Current Prices % 7.1 8.0 7.8 7.3
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Draft Report
DEMOGRAPHIC
OVERVIEW
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Draft Report
DEMOGRAPHIC OVERVIEW
KSA POPULATION
KSA Population
40
29.99 30.62 32.1
27.56 28.38 29.2
30 24.94 25.79 26.66
22.56 23.33 24.12
20
10
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (F)
Population (Millions)
• The capital of Saudi Arabia and the biggest city, Riyadh, is home to over five million
Saudi Vs None Saudi
inhabitants. However, the high number of illegal immigrants in Saudi Arabia also
accounts for the total population.
• The average growth rate for population in Saudi Arabia over the last 10 years is 32%
almost 3.26% annually.
• As an overall for Saudi population, foreigners forms 32% from the total population
living in Saudi Arabia concentrated in the main cities such as Riyadh, Makkah, 68%
Jeddah, Khobar, Dammam, etc..
• It is expected to have population growth rate for the end of 2015 by almost 4.5 %
Saudis None - Saudis
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Draft Report
POPULATION BY GENDER AND AGE - KSA
AGE CATEGORY % POPULATION MALE %% FEMALE %%

• The gender distribution is skewed towards male population
0-14 YEARS 27.6% 51% 49%
which comprise 55% of the total population. This is primarily
15-24 YEARS 19.3% 54% 46%
because of male-expats working in the country.
25-54 YEARS 45.4% 57% 43% • Approximately 47% of the population is under 24 years of
55-64 YEARS 4.5% 55% 45% age. This shows that the population is dominated by younger
OVER 64 YEARS 3.2% 51% 49% generation.
FEMALES MALES
MALES Vs FEMALES - KSA
Over 64 years Over 64 years
55--64 55--64
25--54 25--54 45%
15--24 15--24 55%
0--14 0--14
40% 42% 44% 46% 48% 50% 48% 50% 52% 54% 56% 58%
FEMALES Series 1 MALE FEMALES
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Draft Report
INCOME LEVELS – SAUDI ARABIA
The income distribution chart shows that

10% 44% of the population lies in Income range
below SAR 5000 per month. The majority
of expats lie in this region in unskilled
10%
labor categories including manufacturing
and construction .
44%
Approximately 20% of the total population
earn earning SAR 12,000 or more
19%
17%
Less Than 5,000 5,001 - 8,000 8,001-12,000 12,001-16,000 More than 16,000
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Draft Report
POPULATION – EASTEN PROVINCE
The population of Eastern province stands at approximately 4.7 million (15% of the SAUDI GDP by Province
total population). 43% of total population of Dammam & Al Khobar is Non Saudis,
which is higher than Kingdom’s population average.
The Eastern province has abundance of mineral resources with 10 of the Kingdom’s 16%
14 natural gas fields and over 50% of its oil reserves. Eastern province accounted for 11%
56% of the Saudi GDP as of 2014.
56%
Within the Eastern province, Jubail Industrial City is an important manufacturing hub 17%
contributing 12% of the Kingdom’s GDP and 85% of non-oil exports .
Estren Province Riyadh Makkah Others
DAMMAM & KHOBAR POPULATION (Mn)

1.5
1.08 1.11 1.13 1.15 1.17
1.03 1.06
1
0.5
0
2014 2015 2016 (F) 2017(F) 2018(F) 2019(F) 2020(F)
Dammam Khobar
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Draft Report
KHOBAR POPULATION – SAUDI Vs NONE SAUDI
800,000
741,886 755,623
727,460
712,337
696,513
700,000 679,988
662,771
600,000
500,000
408,036
384,662 392,828 400,618
357,896 367,194 376,117
400,000
334,632 341,268 347,587
312,794 320,396 327,675
304,875
300,000
200,000
100,000
0
2014 2015 2016 (F) 2017(F) 2018(F) 2019(F) 2020(F)
TOTAL POPULATION SAUDI NONE SAUDI
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Draft Report
DAMMAM POPULATION – SAUDI Vs NONE SAUDI
1,400,000
1,200,000 1,152,005 1,173,191

1,106,630 1,129,821
1,082,438
1,057,256
1,031,097
1,000,000
800,000 692,183
652,912 666,594 679,683
608,347 623,781 638,638
600,000
463,227 472,322 481,008
422,750 433,475 443,800 453,718
400,000
200,000
0
2014 2015 2016 (F) 2017(F) 2018(F) 2019(F) 2020(F)
TOTAL POPULATION SAUDI NONE SAUDI
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Draft Report
RESIDENTIAL COMPOUNDS
SECTOR
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Draft Report
RESIDENTIAL COMPOUND SECTOR
OVERVIEW
INTRODUCTION COMPOUND COMPONENTS
The residential compound concept was originally created to serve the needs of The residential compound projects composed of 3 main elements:
the western expiates, and later for all none Saudis living with in the kingdom. - Housing Units
The concept of the residential compound is basically a closed community - Facilities & Amenities
developments were many facilities and special amenities are included. The - Management & Operation
residential compounds developments started in the early 80s and the eastern The more attractive these elements would be, the more demand and
province was leading this sector to serve all none Saudi. desirability the project will have.
CATEGORIES Housing Units:

The unit types usually found in the residential compounds are Studios,
Residential Compounds are divided into 4 categories; A, B, C & D. the major Apartments and villa units with different number of rooms for all. Recently new
difference between these 4 categories is the project size and the facilities, housing unit types are being introduced in the residential compound which is
amenities and services provided with in each compound. Later in this report we the Duplex Apartment units.
will include category matrix for these 4 types.
Facilities & Amenities:
Residential compound provide additional facilities and services for the
residences mostly covers entertainment, education and security aspects.
Management & Operation

The project management and operation has direct affect on the desirability of
the project as well as the stability of revenues of the investment.
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Draft Report
RESIDENTIAL COMOPUND CATEGORIES
CLASS A CLASS C
Class A Compound are the largest in size among the other categories This category has the basic services and facilities set provided to tenants. In Class C
(usually over 50,000 Sqm). This type of compound provides full set of compound you may 2 units types maximum and in some cases only villa units. The
services, facilities and amenities for the tenants with special security average land area size for Category C is from 10,000 Sqm to 15,000 Sqm. Class C
(Military) services. It also includes all types of residential units targeting Compound usually offer the units as semi furnished with the basic elements such as
mainly the western and European tenants. All the units in this category are Bed, Cabinets Dining Table and some kitchen appliances. The total number of units
fully furnished and equipped. usually does not exceed 30 to 40 units with in the facility.
CLASS B CLASS D
Class B Residential Compound usually developed on land sizes within the Class D Compounds are usually built on small land sizes (from 5,000 Sqm to 10,000
range of 20,000 Sqm to 50,000 Sqm with many facilities and services Sqm). Only swimming pools, gym and kids playground are offered in this category. In
provided but not as the Class A category. Usually the units are fully addition, the units are offered for tenant unfurnished and with no appliances. The renting
furnished but in some cases (very few) the units could be semi furnished for rates for these units are usually as the normal standalone unit with almost 20% increase
price competitive advantage. Class B Compounds are most proffered type because of the fencing (Close Community). Usually one unit type are found in this
among other compounds from all expats nationalities since it offers most of category and it does not exceed 10-15 villa units or 15 – 30 apartment units.
the facilities and services with lower rent compared to Category A.
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Draft Report
RESIDENTIAL COMOPUND FACILITIES RATINGS
FACILITIES CLASS A CLASS B CLASS C CLASS D

GYMNASIUM
SWIMMING POOLS
KIDS SWIMMING POOLS
KIDS AREA
MULTIFUNCTIONAL COURTS
(INDOOR)
MULTIFUNCTIONAL COURTS
(OUTDOOR)
SPECIAL SPORTS COURT
MINI MARKETS
BANQUET HALLS
LIBRARY
RESTAURANT
RECREATION CENTER
LINE SHOPS
COFFEE SHOP
LAUNDRY
GIFT SHOP
BARBER SHOP
The above mentioned points are not fixed, but they are considered as the most common for the
mentioned categories
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Draft Report
RESIDENTIAL COMOPUND SERVICES RATINGS
SERVICES CLASS A CLASS B CLASS C CLASS D

SPECIAL SECURITY SERVICES
GUARDS
MAINTENANCE 24/7
HOUSE CLEANING (EXTRA CHARGE)
BUS STATION
DELIVERY SERVICES (EXTRA CHARGE)
CABLE TV
INTERNET
SMART SYSTEMS
FURNISHED
SEMI FURNISHED
NOT FURNISHED
SCHOOL
NURSERY
CLINIC
The above mentioned points are not fixed, but they are considered as the most common for the
mentioned categories
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Draft Report
HOUSING UNITS DISTRIBUTION
DAMMAM– HOUSING UNITS BY NONE SAUDI

According to the last published statistics by CDSI, apartments and villas are common amongst Saudi
Households in Dammam and Al Khobar. 1% 10%
12%
Data indicates 51% and 34% of total Saudi households in Al Khobar are residing in villas and apartments Villa Units
13%
respectively. Similar trend can be observed in Dammam where 26% and 57% of Saudi Population is residing in Apartments
villas and apartments respectively. On the contrary, non Saudi population has inclination towards apartments. Floor Vila
According to statistics, 65% and 64% of non Saudi households in Al Khobar and Dammam are residing in Compounds
apartments respectively. Others
The average family size for none Saudi is 3.8 person per family . 64%
KHOBAR – HOUSING UNITS BY NONE SAUDI KHOBAR – HOUSING UNITS BY SAUDI DAMMAM– HOUSING UNITS BY SAUDI
11% 1% 0%4% 0% 5%
14% 11% 12%
26%
9% Villa Units Villa Units Villa Units
Apartments Apartments Apartments
Floor Vila 51% Floor Vila Floor Vila
Compounds Compounds Compounds
Others 34% Others Others
65% 57%
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Draft Report
KHOBAR – DEMAN Vs SUPPLY
We have identified various exiting residential developments in Dammam/Al-Khobar

area. Most of the existing residential compounds are on the northern side of site.
Expats prefer to live in compounds where level of security and freedom is high.
Living in a compound has several advantages. The compound usually provides buses
for shopping and school transportation. Women are allowed to walk around without
wearing the cloak inside the compound. There are swimming pools, tennis courts,
basketball courts and gyms, with some compounds even offering a golf course.
PROJECT NAME REGION CONTRACT VALUE PROJECT OWNER UNITS PROJECT YEAR OF
(MN) STATUS COMPLETION
NADA VILLAGE Khobar 164 Emaar Properties 242 Completed 2013
MURJANAH COMMUNITY Dammam 100 Alargan 400 Completed 2014
GHADEER VILLAGE Khobar 164 Emaar Properties 232 Completed 2014
NAWRAS VILLAGE Dammam 270 Jenan Estate 228 In Process 2015
ANSARI COMPLEX Khobar 27 Ansari Holding 105 In Process 2016
HILLS COMPOUND Dammam 300 Jubail Development 740 In Process 2018
KHOBAR LAKES Khobar 1,400 Emaar Properties 2100 In Process 2019
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Draft Report
KHOBAR – DEMAN Vs SUPPLY
The average family size of none Saudi people is 3.8 persons / Family. The overall population for none Saudi in Khobar is 304,875, which they require almost 80,230
residential units. As per the statistics from CDSI 12% from the existing supply of housing units are categorizes as residential compounds (total of 9,627). We assumed
that at least 20% of the none Saudi are willing to live in compounds who they need and can afford 16,046units with shortage of 6,419units increasing by 3% as the
population growth rate on yearly basis. With reference to the research done by our team, the upcoming supply compound units are still behind the demand levels as per
the following graph
8,000 6,921
6,523 6,719
6,149 6,333
7,000
6,000 5,550
5,000
4,000 3,550
3,000 2,450
2,000 1,600
1,000 800
-
2015 2016 2017 2018 2019
Cumulative Supply Cumulative Demand
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Draft Report
RESIDENTIAL COMPOUND
SAMPLES
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Draft Report
BENCHMARKS
KHOBAR AL-RASHID RESIDENTIAL COMPOUND
Overview Rental rate
The Al Rashid residential compound is located in Azizia on prince Khaled The project is demanding a rental rate of SAR 230,000 per annum. The
street, Al-Khobar developed 10 years ago. The developer of the project is current occupancy rate of the compound is around 80%.
Al-Rashid Investments.
Development composition
• 80 residential units (2/3 bedrooms villas)

• 110 sqm each.
• Covered area of 49,000 sqm
• Built up area of 73,000 sqm
• Parking space for up to 80 cars
• 60% common area
Facilities
• Swimming pool
• Gym
• Events Hall
• 24/7 security and surveillance.
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Draft Report
BENCHMARKS
KHOBAR RIYADH HOUSING COMPLEX
The Riyadh housing complex is located in Azizia on prince Khalid street, The annual rental rate is SAR 95,000 and the occupancy rate is 100%
Al Khobar. The developer of the project is Riyadh Investment co. The
development is 20 years old.
• 40 residential units (2 bedroom villa)

• Unit Size of 120 sqm
• 2 floor residential units
• Common area of 60%
• Parking space for up to 60 cars
Facilities
• Swimming pool
• Gym
• Events Hall
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Draft Report
BENCHMARKS
KHOBAR MOHAMMADIAH COMPOUND
Mohammadiah Residential compound Is located in prince sultan street, Al The rental rate per annum is SAR 180,000 with occupancy rate of 80%
Khobar. The developer of the project is Othman Investment company. The
development is 3 years old. The target market of the compound is upper
class
• 50 units (2/3 bedroom villas)

• Unit size of 270 sqm
Facilities
• Swimming pool
• Gym
• Events Hall
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Draft Report
BENCHMARKS
KHOBAR MOHAWIS COMPOUND
Al Mohawis Compound is located at the Junction of King Saud Road and The rental rate is SAR 150,000 per annum with an occupancy rate of
Salaheddin Ayubi Street, Al Khobar. The development is 10 years old. 100%
The target market of the compound is general public.
• 21 residential units (2 bedroom villa)

• Each unit of 200 sqm
• Parking space for 20 cars
Facilities
• Swimming pool & Gym

• • Events Hall & • 24/7 security and surveillance.
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Draft Report
BENCHMARKS
KHOBAR AWAN COMPOUND
Awan residential project is located in King Saud Road, Al-Khobar. The The rental rate is SAR 140,000 per annum with an occupancy rate of
developer of the project is Highness real estate co. The development is 5 100%
years old. Target market of the development is middle class.
• 34 residential units (2 bedrooms villa)

• Each unit of 175 sqm
• Parking space for 29 cars
Facilities
• Swimming pool & Gym

• • Events Hall &
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BENCHMARKS
KHOBAR DANAH COMPOUND
Danah compound is located in Khobar-Dammam highway comprising of a •SAR 200,000 –3 bedroom

land area of 90,000 sqm. •SAR 240,000 –Executive villas’s
Occupancy Rate is 95%
96 villas of 220 sqm. & 8 executive villas of 360 sqm
Facilities
•Gym & swimming pool

•Tennis court & Basketball
•Tennis table & Billiard table
•Beauty saloon & Kinder garden
•Recreational room & pre-school center
•Bus transportation
•Restaurant & snack bar
•Ballroom & library
•Wireless Internet & Satellite cable
•Business center
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Draft Report
BENCHMARKS
KHOBAR Al-HUGAYT COMPOUND
Al-Hugayet compound is located in Al-Rawabi street. It is a comfortably •SAR 200,000 –175 sqm
sized compounds with wide roadways, spacious garden and landscaping •SAR 240,000 –190 sqm
91 one flat unfurnished villas:

•175 sqm–3 bedroom
•190 sqm–4 bedrooms
Facilities
•Gym, swimming pool & Squash court

•Tennis & basketball court
•Tennis table and squash court
•Billiard table & bowling
•Beauty salon & baby nursery
•Kinder garden & recreational room
•Wireless Internet & Satellite channels
•Ballroom
•Restaurant
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BENCHMARKS
KHOBAR GULf PEARL 2 COMPOUND
Gulf pearl 2 compound is located in Azizyah under the management of Al •SAR 120,000 –2 bedroom furnished
Kifah real estate. The units can be taken as furnished or unfurnished •SAR 150,000 –3 bedroom furnished
depending on the tenant’s requirements. Occupancy Rate is 95%
90 villa’s:
Facilities

•Tennis court & Basketball
•Tennis & Billiard table
•Recreational room & Restaurant
•Reserved parking
•Guards
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Draft Report
BENCHMARKS
KHOBAR JAZALA COMPOUND
Jzala compound is located in North west of Al-Khobar city on the old The rental rate is as follows:
airport.. •SAR 170,000 –3 bedroom
•SAR 180,000 –3 bedroom type B
Development composition •SAR 145,000 –3 bedroom semi-furnished
101 furnished residential villas:
•65 units, 2 storey–3 bedroom
•36 units, 2 storey–4 bedroom
Facilities

•Squash court & Tennis court
•Basketball
• TableTennis & Billiard table
•Beauty salon, Baby nursery & Kinder garden
•Recreational room
•Restaurant & Snack bar
•Guards
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BENCHMARKS
KHOBAR EURO VILLAGE COMPOUND
Euro village is one the largest residential compounds in the Eastern •2 bedroom: SAR 170,000
province. Accommodation is provided for both bachelor and families. •3 bedroom: SAR 220,000
•4 bedroom: SAR 240,000
Development composition The rent includes maintenance and electricity.
465 furnished residential villas (2, 3, & 4 Bedrooms)
Facilities

•Squash court & Tennis court
•Tennis table & squash table
•Food court
•Reserved parking
•Wireless Internet
•Guards
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BENCHMARKS
KHOBAR CANARI COMPOUND
Canary village is a modern residential compound has been designed with a •SAR 210,000 –200 sqmvilla
high standard of accommodation. •SAR 240,000 –227 sqm
•SAR 260,000 –245 sqm
Development composition The rent includes electricity and maintenance costs.
159 double storeyvillas with garden, 3 bedroom:

•Typical –200 sqm
•Modified –227 sqm
•Admin –245 sqm
•Executive –275 sqm
Facilities

•Tennis table & Billiard table
•Bus transportation
•Ballroom , Reserved parking
•Wireless Internet & Satellite TV
•Guards
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Draft Report
BENCHMARKS
KHOBAR DHARAN TOWER COMPOUND
Dhahran tower is a 46 floor residential tower. The tower provides fully 2 Bedroom Apt (158 Sqm) SAR 125,000
furnished and equipped apartments ranging between 2 and 3 bedrooms. 2 Bedroom Apt (193 Sqm) SAR 150,000
The specifications of the apartments is as follows: 3 Bedroom Apt (231 Sqm) SAR 185,000
•2 bedroom: 193 sqm and 158 sqm 3 Bedroom Apt (255 Sqm) SAR 190,000
•3 bedroom: 231 sqm and 255 sqm
Facilities
•Health club floor

•House keeping service
•Aqua service
•24 hour security service & CCTV cameras
•Wi-Fi
•Satellite cables
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BENCHMARKS
KHOBAR NADA COMPOUND
NADA Compound located on Khobar Dammam Highway and composed of 3 Bedroom Single Floor (220 Sqm) SAR 175,000
128 fully furnished villa units divided into 2 types build on 124,000 Sqm 4 Bedroom Single Floor (260 Sqm) SAR 180,000
Land Area. The occupancy rate is 95%. 4 Bedroom Duplex (220 Sqm) SAR 180,000
• 1 Floor Villa Units ( 100 Units) – 3 & 4 Bed – 220 – 260 Sqm 4 Bedroom Duplex (300 Sqm) SAR 200,000
• Duplex Villa Units ( 28 Units) – 4 Bed - 220 – 300 – 360 Sqm 4 Bedroom Duplex (360 Sqm) SAR 230,000
Facilities
•Recreation Center
•Tennis Courts
•Aerobics Center
•Swimming Pools
•Children Play Ground
•Squash Court
•Health Center
•Restaurants & Mini Market
•SAUNA & JACUZZI
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BENCHMARKS
KHOBAR FERDOUSE COMPOUND
Al-Ferdouse Compound comprised of 65 villa units wooden coated and •SAR 145,000–3 bedroom furnished
fully furnished. To types of units are available in this compound. •SAR 80,000 – 1 bedroom furnished
•150 sqm–3 bedroom (43 units)

•80 sqm–1 bedroom ( 22 units)
Facilities

•Tennis court & Squash Court
•Multi Purpose activity room
•Recreation Center
•Guards
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Draft Report
BENCHMARKS
KHOBAR KARAWAN VILLAGE COMPOUND
Karawan village considered as an A category compound composed •2 bedroom – 210 Sqm: SAR 150,000
of 69 stand alone villa units. The project land area is relatively small •3 bedroom – 260 Sqm: SAR 180,000
for class A compounds, but the facilities and amenities provided with •4 bedroom – 300 Sqm SAR 210,000
in the projects give high rank up to A category
20 units as 4 Bed Villas

35 Units as 3 Bed Villas
14 Units as 2 Bed Villas.
Facilities

•Basket ball, Volley Ball, Squash & Tennis Courts.
•Entertainment and gaming area
•Recreation Center and Nursery
•Reserved parking
•Wireless Internet & Tv Cables
•Guards & Bus Station
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BENCHMARKS
KHOBAR RAKA COMPOUND
Ar Rakah residential compound is situated in the Ar Rakah district •3 bedroom – 220 Sqm: SAR 240,000
including 563 villa units with 220 Sqm each. The project was built on Occupancy Rate is 87%
land area of 277,852 Sqm.
Facilities
•Very high quality of furniture

•House Maid Rooms.
•Health Club & Squash Courts.
•Bowling Hall.
•Restaurants
•Laundry, Gift Shop, Hairdresser shop, Travel Agency & Library.
•Entertainment and gaming area
•Recreation Center, Medical Clinic, Nursery & Kindergarten.
•Tennis, Basketball & Volleyball courts.
•Wireless Internet & Tv Cables
•Guards & Bus Station
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BENCHMARKS
KHOBAR FALAK COMPOUND
•SAR 90,000 –2 bedroom furnished

AFLAK Compound is an apartment compound with total units number of
•SAR 130,000 – 3 bedroom furnished
46 fully furnished apartments divided into 3 categories. •SAR 150,000 – 3 bedroom furnished
•86 sqm–2 bedroom apartment (28units)

•145 sqm–3 bedroom apartment (12 units )
•195 sqm–4 bedroom apartment (6 units )
Facilities

•Driver Accommodation
•Multi Purpose activity room
•Guards and 24/7 on call maintenance
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BENCHMARKS
KHOBAR FASALIAH COMPOUND
Faisaliyah compound is located in Dammam city , it consists of 102 3 Bed (187 Sqm) 200,000 SAR
residential villas with a total area of 29,500 m² 3 Bed (212 Sqm) 240,000 SAR
4 Bed (270 Sqm) 290,000 SAR
- 3 Bed Villa units – 187 Sqm ( 44 Units)
Occupancy Rate 94%
- 4 Bed Villa Units – 270 Sqm (22 Units)
Facilities
•Recreation Center & Fitness Center

•Squash Courts
•Bus station
•Swimming Pools
•Event Hall
•Health Center
•Restaurants & Mini Market
•SAUNA & JACUZZI
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Draft Report
BENCHMARKS
KHOBAR WAHA COMPOUND
Al Waha is located near King Saud University with easy access to the 2 Bed (130 Sqm) 150,000 SAR
Airport, 20- minutes. It has 75 villa units 3 Bed (180 Sqm) 180,000 SAR
- 3 Bed Villa units – 180 Sqm ( 38 Units) Occupancy Rate 95%
Facilities
Swimming Pool and Jacuzzi

Patio Area
Tennis Court
Complete Gym
Air-conditioned Squash Court
Game Room
Outdoor Playground
Indoor Playing Area
Basketball Court
Salon for Men and Women
Mini Supermarket
Restaurant
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Draft Report
BENCHMARKS
A CLASS CATEGORY ANALYSIS
UNITS DISTRIBUTION
COMPOUND Number of 2 Bed Apt. 3 Bed Apt. 4 Bed Apt. 1 Bed Villa. 2 Bed Villas 3 Bed Villas 4 Bed Villas
NAME Units
DANAH 104 0 0 0 0 0 96 8
EURO VILLAGE 465 0 0 0 0 233 195 47
JAZALA 101 0 0 0 0 0 65 36
KARAWAN 69 0 0 0 0 14 35 20
FAISALIAH 102 0 0 0 0 0 80 22
RAKA 563 0 0 0 0 0 563 0
AVERAGE ANNUAL RENT

2 Bed Apt. 3 Bed Apt. 4 Bed Apt. 1 Bed Villa. 2 Bed Villas 3 Bed Villas 4 Bed Villas
DANAH ---- ---- ---- ---- ---- SAR 200,000 SAR 240,000
EURO VILLAGE ----- ---- ---- ---- SAR 170,000 SAR 220,000 SAR 240,000
JAZALA ----- ---- ---- ---- ---- SAR 180,000 SAR 200,000
KARAWAN ---- ---- ---- ---- SAR 150,000 SAR 180,000 SAR 210,000
FAISALIAH ---- ---- ---- ---- ---- SAR 220,000 SAR 290,000
RAKA ---- ---- ---- ---- ---- SAR 220,000 ----
AVERAGE RENT ---- ---- ---- ---- SAR 160,000 SAR 205,000 SAR 236,000
Occupancy
Rate
DANAH 95%
EURO VILLAGE 95%
JAZALA 85%
KARAWAN 100%
FASALIAH 94%
RAKA 87%
AVERAGE 92%
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Draft Report
BENCHMARKS
A CLASS CATEGORY ANALYSIS
Average Unit Rent / Category

250,000
200,000 236,000
150,000
205,000
100,000
160,000
50,000
0 0 0 0
0
2 Bed Apt. 3 Bed Apt. 3 Bed Apt. 1 Bed Apt. 2 Bed Villa 3 Bed Villa 4 Bed Villa
600
500
400
300
200
100
0
DANAH EURO VILLAGE JAZALA KARAWAN FAISALIAH RAKA
2 Bed Apt 3 Bed Apt 4 Bed Apt 1 Bed Villa 2 Bed Villa 3 Bed Villa 4 Bed Villa
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BENCHMARKS
B CLASS CATEGORY ANALYSIS
UNITS DISTRIBUTION
NAME Units
RASHIS 80 0 0 0 0 35 55 0
HUGAYT 91 0 66 25 0 0 0 0
CANARI 159 0 0 0 0 0 159 0
NADA 128 0 0 0 0 50 50 28
WAHA 75 0 0 0 0 37 38 0
AVERAGE ANNUAL RENT

RASHIS ---- ---- ---- ---- SAR 180,000 SAR 230,000 ----
HUGAYT ----- SAR 200,000 SAR 240,000 ----- ----- ---- ----
CANARI ----- ---- ---- ----- ----- SAR 240,000 ----
NADA ---- ---- ---- ---- SAR 175,000 SAR 180,000 SAR 200,000
WAHA ---- ---- ---- ---- SAR 150,000 SAR 180,000 ----
AVERAGE RENT ---- SAR 200,000 SAR 240,000 ---- SAR 165,000 SAR 200,000 SAR 200,000
Occupancy
Rate
RASHIS 80%
HUGAYT 100%
CANARI 100%
NADA 90%
WAHA 95%
AVERAGE 93%
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BENCHMARKS
B CLASS CATEGORY ANALYSIS

300,000
240,000
250,000
200,000
200,000
150,000 200,000
100,000 200,000
50,000 165,000
0 0
0
200
150
100
50
0
Rashis HUGAYT CANARI Nada WAHA
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Draft Report
BENCHMARKS
C CLASS CATEGORY ANALYSIS
UNITS DISTRIBUTION
NAME Units
GULF PEARL 2 90 0 0 0 0 48 32 10
RIYADH HOUSE 40 0 0 0 0 40 0 0
MOHAMADIAH 50 0 0 0 0 20 30 0
MOHAWIS 21 0 0 0 0 21 0 0
FERDOUS 65 0 0 0 22 0 43 0
FALAK 46 28 12 6 0 0 0 0
AWAN 34 0 0 0 0 34 0 0
AVERAGE ANNUAL RENT

GULF PEARL 2 ---- 0 0 ---- SAR 120,000 SAR 150,000 SAR 180,000
RIYADH HOUSE ----- 0 0 ----- SAR 95,000 ---- ----
MOHAMADIAH ----- 0 0 ----- SAR 150,000 SAR 180,000 ----
MOHAWIS ---- 0 0 ---- SAR 150,000 ---- ----
FERDOUS ---- 0 0 SAR 80,000 ---- SAR 145,000 ----
AWAN SAR 90,000 SAR 130,000 SAR 150,000 ---- ---- ----
AVERAGE RENT SAR 90,000 SAR 130,000 SAR 150,000 SAR 80,000 SAR 142,000 SAR 158,000 SAR 180,000
Occupancy
Rate
GULF PEARL 2 95%
HUGAYT 100%
MOHAMADIAH 80%
MOHAWIS 100%
FERDOUS 100%
FALAK 100%
AWAN 100%
AVERAGE 96%
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Draft Report
BENCHMARKS
C CLASS CATEGORY ANALYSIS

200,000
150,000
150,000 130,000 180,000
100,000 90,000 165,000

80,000
142,000
50,000
0
60
50
40
30
20
10
0
GULF PEARl 2 RIYADH HOUSE MOHAMADIAH MOHAWIS AWAN ferdous FALAK
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Draft Report
MARKET NEEDS
&
TENANT REQUIRMENTS
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Draft Report
TENANT REQUIRMENTS
TENANTS APPROACH
INTRODUCTION
Questionaire Sample Type
50 47
Residential compound rental rates are well known to be higher and 41
more expensive than normal stand alone residential units, which is 40
justified by the level of service, facilities and amenities provided with in 30
the compound. 20
9
10
In order to know the requirement and how important each of the
0
services and facilities provided in these projects, we have designed
Working in Compounds Living in Compounds Wants to Live in Compound
questionnaire and interviewed a sample composed of 84 people. 9
people working in residential compound management, 41 people
already living in residential compounds and 47 people wants to live in 9.20%
residential compounds.
In this section, we will include the outputs of the questionnaire process 48.60%
to get better idea about the tenants requirements and needs. In
42.20%
addition, we will illustrate some characteristics about the interviewed
sample.
The questions asked were to cover the major points in knowing the
project mix development and importance of each service and / or facility. Working in Compound Living in Compound Want to Live in compound
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TENANT REQUIRMENTS
TENANTS CHARECTERISTICS
NATIONALITY & RACE SINGLES Vs FAMILIES Overall Single Vs Married
The majority of the Arabs Sample were from Lebanon and Egypt, while the The majority of the questioned
Western were mostly American. French, English and Germans were the sample were married with almost
European sample. Asian were mostly from India & Pakistan 60% ratio while the other s are Single 39
40%.
50 47
40 The majority of the married sample
30 goes for Arab & Asian categories.
17 20
20 13
10 While the single sample has high Married 58
0 rates in Western and European
Westren European Arabs Asian categories
13.40% ARAB ASIAN EURPOEAN WESTREN

20.60%
17.50% 21.2 23.00
0% 35.20 %
40.00 %
48.50% %
60.00
78.8 % 64.80 77.00
0% % %
Westren European Arabs Asian

Married Single
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Draft Report
TENANT REQUIRMENTS
PAYMENT SOURCE
As we mentioned earlier, the annual rental rates of residential compound are 60

higher and much more expensive that the normal stand alone villa units or 49
50
apartments. As per the Saudi Labor law, the employer pays the employee 3
40
months’ salary for accommodation if he is married. And 2 months’ salary for 26
30
single cases. In this regards, we have divided the rents affordability into 3 22
categories: 20
10
CATEGORY 1 0
Rent paid by the employer even if it does exceed the accommodation Category 1 Category 2 Category 3
allowance ruled for the employee. This category mainly found in the western,
European nationalities and very few in Arab and Asian Nationalities.
CATEGORY 2
Rents paid by employee or employer and almost equal to the ruled 22.68%
accommodation allowance. 26.81%
CATEGORY 3 50.51%
Rents Paid by employee. In this category the tenant is willing to pay extra
money and additional to his allowance to live in compound. This category
mainly applies on Arab nationalities and especially those who have side
Category 1 Category 2 Category 3
businesses.
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Draft Report
TENANT REQUIRMENTS
COMPOUND CLASSIFICATION
To make our research, analysis and outputs more reliable, and during the EUROPEAN
interviews done with 97 people, we focused in our questions on the compound European have also the same outputs as the Westerns by choosing compound
class categories were every and each one of the interviewed persons wants to classes of A & B and they were almost split between these two categories
live in and can afford paying the annual rent (by individual or by employer).
Each nationality type has certain reasons why they chose specific compound. ARABS
The following will indicate the preference for compound class by nationality The majority of chosen compound type goes for Class B then comes Class C
type: with few interest in Class A with ratios of 42.5%, 40.5% and 17% respectively
for the following reasons:
WESTRENS: - Class B Compound have most of the facilities provided in Class A
The western nationality sample was 13 persons and they prefer compounds compounds with cheaper rental rates
categories of A & B classes by 60% and 40% respectively. No interest were - Class C compounds ae more Affordable for middle class income.
found for other compound categories. The reasons behind their preference
are: ASIANS
- More security options (especially the governmental security) 45% prefer class A compounds, 35% prefers Class B Compounds while the
- Variety of facilities, services and amenities provided with in these rest of 20% wants to live in Class C Compounds
compound classes.
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Draft Report
TENANT REQUIRMENTS
COMPOUND CLASSIFICATION
CLASS A COMPOUND CLASS B COMPOUND
40 50
As an overall there was 34 (35.1%) people 34 40
preferred to live in Class A compounds, 40 30 40
(41.2%) people preferred to live in class B 30
20 20
compounds and 23 (23.7%) in Class C 20
8 9 8 9
compounds. 10 5
8 7
10
0 0
In the coming analysis we did interview the
TOTAL Westren European Arabs Asians TOTAL Westren European Arabs Asians
chosen sample as per compound type
covering the required facilities, amenities,
services and other items.
CLASS A COMPOUND OVERALL
25 23 120
19 97
23.70% 20 100
35.10%
80
15
41.20% 60
10 34 40
40 23
4
5 20
0 0
0 0
A B C TOTAL Westren European Arabs Asians TOTAL CLASS A CLASS B CLASS C
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Draft Report
TENANT REQUIRMENTS
TENANTS REQUIRMENTS & NEEDS – CLASS A COMPOUND SERVICES
120.00%
SERVICES IMPORTANCE
100.00% 100.00%
The chart on the right 100.00%
90.50% 91.50% 88.75%
measures the importance of
the services provided with in 78.75%
80.00%
Class A Compound.
58.50% 60.50%
60.00% 55.25%
We can note the following: 48.25%
- Internet & TV cables 40.00%
are must. 40.00%
- High importance for
special security,
20.00%
maintenance and units 11.00%
to be furnished.
- Arabs and Asians have 0.00%
Special Semi
Maintenance Furnished Cleaning Smart Transportati
high importance for Security
24/7 Units
Furnished
Services
Cable TV Internet
Systems
Nursery School Clinic
on
Services Units
nursery and schools Westren 96.00% 93.00% 95.00% 5.00% 67.00% 100.00% 100.00% 48.00% 25.00% 35.00% 33.00% 80.00%
since the majority are European 95.00% 95.00% 99.00% 0.00% 70.00% 100.00% 100.00% 50.00% 39.00% 42.00% 41.00% 75.00%
families. Arab 84.00% 88.00% 72.00% 28.00% 45.00% 100.00% 100.00% 20.00% 82.00% 50.00% 78.00% 88.00%
- Very low interest in Asian 87.00% 90.00% 89.00% 11.00% 52.00% 100.00% 100.00% 42.00% 75.00% 66.00% 90.00% 72.00%
smart systems and Average 90.50% 91.50% 88.75% 11.00% 58.50% 100.00% 100.00% 40.00% 55.25% 48.25% 60.50% 78.75%
semi furnished units.

The analysis covers the outputs that we had from interviewed sample, collected market information and our best market knowhow.
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Draft Report
TENANT REQUIRMENTS
TENANTS REQUIRMENTS & NEEDS – CLASS A COMPOUND SERVICES FACILITIES & AMENITIES
120.00%
FACILITIES IMPORTANCE
100.00% 95.50% 96.25%

measures the importance of 83.00% 85.50% 83.75%
78.00%
the facilities provided with in 80.00% 74.50% 74.75%
Class A Compound. 65.50% 67.25% 64.50%
59.00%
60.00% 55.00%
- Gym and outdoor
40.00%
swimming pools have 30.00%
the highest importance
between all nationalities 20.00%
while kids pools were
important more for 0.00% special
Arabs and Asian. Gym
Indoor
Pools
Outdoor
Pools
Kids Pools Kids Area
sports
courts
sports
mini
market
Banquet
Hall
Library Resturant
Recreation
Center
Line Shops
Coffee
Shop
Laudary
Barber
Shop
courts
- Banquet hall had the Westren 95.00% 35.00% 93.00% 37.00% 28.00% 66.00% 54.00% 83.00% 15.00% 59.00% 92.00% 84.00% 85.00% 91.00% 89.00% 90.00%
lowest importance since European 100.00% 44.00% 94.00% 47.00% 41.00% 80.00% 55.00% 91.00% 20.00% 68.00% 95.00% 90.00% 88.00% 87.00% 93.00% 80.00%
Arab
most of the tenants will
87.00% 77.00% 98.00% 87.00% 100.00% 87.00% 20.00% 88.00% 45.00% 44.00% 64.00% 79.00% 62.00% 90.00% 40.00% 57.00%
Asian 100.00% 80.00% 100.00% 91.00% 100.00% 99.00% 65.00% 80.00% 40.00% 49.00% 47.00% 82.00% 64.00% 88.00% 36.00% 85.00%
use it mostly for Average 95.50% 59.00% 96.25% 65.50% 67.25% 83.00% 48.50% 85.50% 30.00% 55.00% 74.50% 83.75% 74.75% 89.00% 64.50% 78.00%
birthday parties.
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Draft Report
TENANT REQUIRMENTS
TENANTS REQUIRMENTS & NEEDS – CLASS A COMPOUND ADDITIONAL SERVICES
SERVICES IMPORTANCE 100.00%

12.00%
90.00% 20.00%
28.00%
This section shows the ability of tenants to pay extra 80.00% 36.00%
45.00% 42.00%
rent for having some additional services like the ones 52.00%
70.00% 62.00%
mentioned in the table. 68.00% 70.00%
60.00% 75.00%
83.00%
92.00%
Most of them are willing to pay extra rent for Cinema 50.00%
88.00%
and telecommunication services. Travel agency, 40.00% 80.00%
72.00%
driver room and business center had the lowest 30.00% 64.00%
55.00% 58.00% Willling to Pay Extra
interests among others. 48.00%
20.00% 38.00% Free
32.00% 30.00%
10.00% 25.00%
the rates category are as follows: 17.00%
8.00%
From 0% - 25% = no interest at all 0.00%
From 25% - 50% = very low interest
From 50% - 75 = Average Interest
From 75% - 100% = high interest
Axis Title
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Draft Report
TENANT REQUIRMENTS
TENANTS REQUIRMENTS & NEEDS – CLASS B COMPOUND SERVICES
120.00%
SERVICES IMPORTANCE
100.00%
The chart on the right 100.00% 94.25%
89.00%
81.25%
79.50%
Class B Compound.
57.50%
- TV cables are highly
demanded.
40.00%
- High importance for 31.75%
special security,
18.75%
maintenance and 20.00%
furnished units
- Arabs and Asians have
0.00%
high importance for Special Security
Maintenance 24/7 Furnished Units
Semi Furnished
Cable TV Smart Systems Nursery Transportation
Services Units
nursery and Westren 94.00% 95.00% 95.00% 5.00% 100.00% 25.00% 23.00% 70.00%
transportation since the European 95.00% 100.00% 100.00% 0.00% 100.00% 33.00% 39.00% 74.00%
majority are families. Arab 79.00% 92.00% 60.00% 40.00% 100.00% 25.00% 85.00% 90.00%
- Very low interest in Asian 88.00% 90.00% 70.00% 30.00% 100.00% 44.00% 83.00% 84.00%
smart systems and Average 89.00% 94.25% 81.25% 18.75% 100.00% 31.75% 57.50% 79.50%
semi furnished units.

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Draft Report
TENANT REQUIRMENTS
TENANTS REQUIRMENTS & NEEDS – CLASS B COMPOUND SERVICES FACILITIES & AMENITIES
120.00%
100.00% 95.00% 96.00%

The chart on the right
measures the importance of 83.75% 85.00%
80.75%
the facilities provided with in 80.00% 77.00%
74.00% 75.75% 76.50%
Class B Compound. 66.00%
60.00%
We can note the following:
- Gym and outdoor
swimming pools have 40.00%
the highest importance
between all nationalities 20.00%
- Kid Pools and play
ground area had the
0.00%
highest ratios among Gym Outdoor Pools Kids Pools Kids Area sports courts Resturant
Recreation
Line Shops Coffee Shop Laudary
Center
Arabs and Asian, and Westren 95.00% 98.00% 44.00% 31.00% 76.00% 93.00% 80.00% 81.00% 85.00% 89.00%
very low ratio among European 100.00% 100.00% 64.00% 65.00% 84.00% 95.00% 88.00% 78.00% 80.00% 90.00%
Arab
Western &Europeans.
90.00% 91.00% 100.00% 100.00% 85.00% 60.00% 75.00% 70.00% 95.00% 44.00%
Asian 95.00% 95.00% 100.00% 100.00% 90.00% 55.00% 80.00% 77.00% 80.00% 41.00%
Average 95.00% 96.00% 77.00% 74.00% 83.75% 75.75% 80.75% 76.50% 85.00% 66.00%
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Draft Report
TENANT REQUIRMENTS
TENANTS REQUIRMENTS & NEEDS – CLASS B COMPOUND ADDITIONAL SERVICES
SERVICES IMPORTANCE 100.00% 0.00%

10.00%
90.00% 15.00%
27.00%
This section shows the ability of tenants to pay extra 80.00% 40.00% 40.00%
34.00%
rent for having some additional services like the ones 50.00%
55.00%
70.00% 60.00%
60.00% 79.00% 80.00%
90.00% 93.00%
Most of them are willing to pay extra rent for Internet, 50.00% 100.00%
90.00%
Cinema and telecommunication services. Travel 40.00% 85.00%
73.00%
agency, driver room and business center had the 30.00% 60.00% 60.00%
66.00%
Willling to Pay Extra
lowest interests among others. 50.00%
45.00%
20.00% 40.00% Free
35.00% 33.00%
the rates category are as follows: 10.00% 21.00% 20.00%
10.00% 7.00%
From 0% - 25% = no interest at all 0.00%
Axis Title
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TENANT REQUIRMENTS
TENANTS REQUIRMENTS & NEEDS – CLASS C COMPOUND SERVICES
120.00%
SERVICES IMPORTANCE
100.00%
88.50%
80.00%
Class C Compound.
60.00%
Westerns & Europeans
have no interest in living in
C class compounds. 40.00%
20.00%
0.00%
Guards Semi Furnished Units Cable TV
Westren 0.00% 0.00% 0.00%
European 0.00% 0.00% 0.00%
Arab 100.00% 85.00% 80.00%
Asian 100.00% 92.00% 78.00%
Average 100.00% 88.50% 79.00%
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Draft Report
TENANT REQUIRMENTS
TENANTS REQUIRMENTS & NEEDS – CLASS C COMPOUND SERVICES FACILITIES & AMENITIES
120.00%
100.00%
91.50% 90.00%
measures the importance of 83.00%
the facilities provided with in 80.00% 73.00%
Class B Compound. 68.00%

50.00%
- Most of the tenants for
C class compounds are 40.00%
Arabs and Asian who
accepts the minimum
facilities provided with 20.00%
in C class compounds.
- Westerns & Europeans 0.00% Gym Outdoor Pools Kids Area sports courts Recreation Center Line Shops Coffee Shop
have no interest in living Westren 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
in C class compounds. European 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Arab 70.00% 95.00% 100.00% 90.00% 70.00% 45.00% 90.00%
Asian 76.00% 88.00% 100.00% 90.00% 66.00% 55.00% 76.00%
Average 73.00% 91.50% 100.00% 90.00% 68.00% 50.00% 83.00%
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TENANT REQUIRMENTS
TENANTS REQUIRMENTS & NEEDS – CLASS C COMPOUND ADDITIONAL SERVICES
SERVICES IMPORTANCE 100.00% 0.00%

5.00%
90.00%
This section shows the ability of tenants to pay extra 80.00% 40.00% 34.00%
44.00% 40.00% 40.00%
rent for having some additional services like the ones 70.00% 58.00% 57.00% 56.00%
70.00% 65.00%
70.00%
85.00% 83.00%
50.00% 97.00% 100.00% 98.00% 100.00%
95.00%
Most of them are willing to pay extra rent for Internet
40.00%
and telecommunication services. Travel agency, 66.00%
30.00% 60.00% 56.00% 60.00% 60.00%
driver room and business center had the lowest
20.00% 42.00% 43.00% 44.00% Willling to Pay Extra
interests among others. 30.00% 35.00%
30.00%
10.00% 23.00% Free
15.00% 17.00%
3.00% 2.00%
the rates category are as follows: 0.00% 0.00%
House Maid Room
Laundary
Cinema
ATM Machines
Travel Agency
Clinic
Nursery
Bus Station
Spa Center
Location
Driver Room
Telecomunication
Mini Market
Nationality of Tenants
Parks
Maintenance
Large Size room
Business Center
Internet
From 0% - 25% = no interest at all
Axis Title
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Draft Report
TENANT REQUIRMENTS
TOP ADDITIONAL SERVICES FOR EXTRA PAYMENT WILLINGNESS.
CLASS (A) CLASS (B) CLASS (C)
The top 5 additional service in class A The top 5 additional service in class B The top 5 additional service in class C
compounds that the tenants are willing to compounds that the tenants are willing to compounds that the tenants are willing to
pay extra amount for are as follows: pay extra amount for are as follows: pay extra amount for are as follows:
1- (92%) – Travel Agency 1- (93%) – Driver Room 1- (100%) – Travel Agency

2- (83%) – Driver Room 2- (90%) – Travel Agency 2- (98%) – Driver Room
3- (75%) – Business Center 3- (80%) – Large Size Room 3- (97%) – Business Center
4- (70%) – Large Size Room 4- (79%) – Business Center 4- (85%) – Bus Station
5- (68%) – Location 5- (67%) – Maid Room 5- (83%) – Spa Center
The extra amount that could be paid for the The extra amount that could be paid for the The extra amount that could be paid for the
above mentioned serviced is from 1% - 2% above mentioned serviced is from 2% - 3% above mentioned serviced is from 3% - 5%
As we can see , travel agency, Driver room & Business center are common demand between the three categories. Still, to provide these services, the land area
size of the compound will be an important measure in this decision.
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RESIDENTIAL COMPOUNDS
ANALYSIS OUTPUTS
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ANALYSIS OUTPUTS
ROOM SIZES (A, B, C & D)
ROOM SIZES NLA – PER UNIT TYPE (SQM)

400
During our inspection and market survey done by our team, we have
noted that most of the compounds are offering villa units for rent as 350
one unit or rarely as 2 apartments (designed as villa units). Therefore, 300
apartment units and studios are very rare to be found specially in A &
250
B compound categories.
200
Usually the rents for apartment units are lower than villa units, still the 150
tenants can benefit from all the facilities and services provided with in
the compound. 100
50
We believe having apartment and studio units in any future
0
development, will definitely be an opportunity specially when there is A B C D
huge demand for it from unserved tenant category. On the other hand, 2 Bed Villa 170 160 150 120
and from investment point of view, apartment units can generate 3 Bed Villa 215 200 185 175
higher income than villa units n some case. 4 Bed Villa 350 275 255
Studio 45 45
As per the market research and the done interviews, we will indicate 1 Bed Apt 65 60 55
the average market sizes for all types of units as per compound 2 Bed Apt 100 95 90 90
classes (A, B, C & D) 3 Bed Apt. 150 140 130 115
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ANALYSIS OUTPUTS
RENTAL RATES (A, B, C & D)
RENTAL RATES
As per the market survey done by our team, in addition to the compound samples provided with in this report, the average rental rate for residential compound as per
category and unit type as follows:
Annual Rent / Unit Type

SAR 250,000
SAR 200,000
SAR 150,000
SAR 100,000
SAR 50,000
SAR 0
Class A Class B Calss C Class D
Studio SAR 70,000 SAR 65,000
1 Bed Apt. SAR 100,000 SAR 95,000 SAR 85,000
2 Bed Apt. SAR 145,000 SAR 125,000 SAR 100,000 SAR 75,000
3 Bed Apt. SAR 180,000 SAR 150,000 SAR 125,000 SAR 90,000
2 Bed Villa SAR 190,000 SAR 170,000 SAR 140,000 SAR 120,000
3 Bed Villa SAR 210,000 SAR 200,000 SAR 165,000 SAR 150,000
4 Bed Villa SAR 235,000 SAR 220,000 SAR 180,000
69
Draft Report
ANALYSIS OUTPUTS
DEVELOPMENT COMPOSITION
PROJECT UNITS’ BREAKDOWN

A B C D
Class A Compounds
In this category, the rental rates are very high, therefore most of the tenants Studio Studio 2 Bed Apt 2 Bed Apt
require more privacy and like to live in stand alone units (Villa units). As per the 10% 10% 30% 45%
market samples and research, the overall villa ratios should be 65% and 35%
for apartment units. 1 Bed Apt 1 Bed Apt 3 Bed Apt 3 Bed Apt
5% 10% 20% 20%
Class B Compound
Since this category has more affordable rents for residential compound tenants, 2 Bed Apt 2 Bed Apt 2 Bed Villa 3 Bed Villa
apartments units have higher share the class A with 45% and 55% for Villa 10% 15% 25% 35%
Units.
3 Bed Apt 3 Bed Apt 3 Bed Villa
Class C Compound 10% 10% 25%
Usually in class C compound studio, 1 bed apartments & 4 Bed villa units are
not available. The target market for this category are families from middle class 2 Bed Villa 2 Bed Villa
income. 25% 15%
In all compound types, the
Class D Compound 3 Bed Villa 3 Bed Villa
most proffered unit types are
Due to the small land size of this category, mostly the units are build as villas 25% 25% 2 Bed Apartments & 3 Bed
and rented with separate floors as apartments. Villa Units.
4 Bed Villa 4 Bed Villa
15% 15%
70
Draft Report
ANALYSIS OUTPUTS
CONCEPT DESIGN
We have contacted several developers and engineering consultants in order to know the
main elements that should be taken into consideration in designing residential compound
project. these elements are:
Land Shape
The best land shape to enhance the design of residential compounds is the square shape
then comes the rectangular shape. In some cases where the land has irregular shape, it is
a bit tricky to have ideal master planning for the project.
Web Concept
the web concept is to place all the main facilities and amenities in the center of the project
to serve all tenants equally by developing streets and pathways in web shape.
Traffic Analysis
One the most important factors is to design the project to ensure the traffic easy
movement as well as safety for tenants (especially children). In addition entrance and exit
of the project should be done in a very efficient way to ensure the easy access to inside
and outside the project.
.
71
Draft Report
ANALYSIS OUTPUTS
DEMAND DRIVERS
As we know, living in residential compounds means the These demand drivers have different importance levels varies between the investor, tenant and project
tenant has to pay extra the normal residential units. The stability point of view as follows:
main demand drivers elements for targeting residential From investment point of view. Increase in Expats population and market shortage in supply make the
compounds from tenants perspective are the following: investment in the residential compound very promising and profitable. While from the tenant point of
view, privacy & community, security matter, rental rates and kids facilities are very important for choosing
PRIVACY & COMMUNITY
decisions. To maintain the project stability of occupancy rates, revenue stream and good well, the
ACCESS & LOCATION provided services & Facilities, entertainment facilities, management support and maintenance will be
very important demand drivers.
FACILITIES, SERVICES & AMENITIES
SECURITY MATTERS
ENTERTAINMENT
RENTING RATES
EXPATS & POPULATION
SUPPLY SHORTAGE
MANAGEMENT SUPPORT
UNITS INTERNAL DESIGN

INVESTOR TENANT PROJECT STABILITY
KIDS FACILITIES
72
Draft Report
ANALYSIS OUTPUTS
SWOT ANALYSIS – CLASS A COMPOUNDS
The following graph illustrate the SWOT analysis for the class A residential compounds terms of Strength, Weaknesses, Opportunities & Threats
STRENGTH WEAKNESS
• Highest levels of services, amenities and facilities • High rental rates
compared other compound categories. • Mostly located on the city’s boundaries and far from the
• Luxury in term of project as an over all as well as the city downtown
residential units has strong presence. • Require long time for 100% rent completion (in case of
• Very high level of privacy new development)
• Very high level of security • High management and operational costs
• High occupancy rates
OPPURTUNITY
• Shortage in supply
• Increase in Expats population
• Add extra facilities to gain competitive edge.
THREAT
• Competition from future projects.
• Need very high investment value
• Decrease in expat population
73
Draft Report
ANALYSIS OUTPUTS
SWOT ANALYSIS – CLASS B COMPOUNDS
The following graph illustrate the SWOT analysis for the class B residential compounds terms of Strength, Weaknesses, Opportunities & Threats
STRENGTH WEAKNESS
• High levels of services, amenities and facilities • High rental rates
compared other compound categories. • Mostly located on the city’s boundaries and far from the
• Good level of privacy city downtown
• Good level of security • High management and operational costs
• Rental rates are lower than class A compounds, but still
providing most of the facilities and services available in
class A compound
OPPURTUNITY
THREAT • Little enhancement in the provided facilities and
services, can attract tenants from class A compound for
• Competition from future projects. higher occupancy rates.
74
Draft Report
ANALYSIS OUTPUTS
SWOT ANALYSIS – CLASS C COMPOUNDS
The following graph illustrate the SWOT analysis for the class C residential compounds terms of Strength, Weaknesses, Opportunities & Threats
STRENGTH WEAKNESS
• Cover the needs and affordability for larger tenant • Only basic facilities and services provided
segments compared to other compound classes. • Security matter are average
• Located in the city and close to the downtown
• Affordable rental rates
• Low maintenance, management and operational costs
• High occupancy rates.
OPPURTUNITY
THREAT • Serving larger tenants segments make it very appealing
for investors
75
Draft Report
ANALYSIS OUTPUTS
SWOT ANALYSIS – CLASS D COMPOUNDS
The following graph illustrate the SWOT analysis for the class D residential compounds terms of Strength, Weaknesses, Opportunities & Threats
STRENGTH WEAKNESS
• Located in the city and close to the downtown • Services and facilities are not available except for Gym
• Affordable rental rates and swimming pools
• High occupancy rates • Not very attractive for middle class income and above.
• Minimum maintenance, management and operational
costs
• High occupancy rates.
• Minimum investment required.
OPPURTUNITY
• Renting time frame for 100% is very short (in case of
THREAT new development).

76
Draft Report
ANALYSIS OUTPUTS
OPERATION AND MANAGEMENT COSTS
MANAGEMENT & OPERATION COST.
The more number of units and services & facilities provided within the compound, the higher management and operation cost will occur. We have contacted several real
estate companies who are specialized in residential compound developments to get an idea about these costs as rates from the expected revenues as follows:
80%
70%
60%
40%
50%
40% 35%
30% 25%
20%
20%
34%
10% 25%
20%
15%
0%
Class A Class B Class C Class D
High Low
77
Draft Report
SITE ANALYSIS
78
Draft Report
SITE ANALYSIS
GENRAL INFROMATION
LOCATION
Subject Property
The subject property located in Khozama District towards South West of Khobar City
and very close to the Gulf Cooperative Council Rd & Cornish Road. The total land
area of the subject property is 32,546 Sqm.
N: 26°12'25.49"
Source: Google Earth

E: 50°10'52.06"
BREIF DESCRIPTION
Currently the subject property is in vacant condition and the owner intends to develop
it into residential compound project. the land has 2 sides open from the west side
and east side.
Subject Property
N: private property with 186 m width
Source: Google Maps

S: private property with 186 m width
E: 30 m Street Depth with 215 m width
W: 20m Street Depth with 215 m width
79
SITE ANALYSIS
CONSTRUCTION RULES
The subject property has a very good location in term of ease

Subject Property
of access, especially through King Khalid Rd from the east
and south and GCC Rd from the north.
According the Khobar Municipality, the subject property is

zoned for residential use with 60% land coverage area and
height of 2 floors under the code ( ‫أ‬/ 1 ‫)س‬. Still the final
confirmation should be taken from the municipality along we
the approved designs and layouts.
The location of the subject property is surrounded by many

main street and close to Gulf shores. In addition, many
facilities such hospitals, big size companies are in the
surrounding of the property along with many residential
compounds.
80
SITE ANALYSIS
SWOT ANALYSIS
The following graph illustrate the SWOT analysis for the subject property’s site in terms of Strength, Weaknesses, Opportunities & Threats
STRENGTH WEAKNESS
• Very good location in Khobar city • Limited Floors’ Heights (only 2 floors)
• Luxury of targeting tenants from both cities Khobar &
Dammam due to close proximity between these 2 major
cities in the eastern province.
• The land of the subject project has the ideal regular
shape.
• Khozama District is Class B Society.
• The subject property\s land is fully graded and ready for
any future developments. OPPURTUNITY
• Availability of other residential compounds in the area,

give a very important competitive edge to provide for
tenants what's missing on those projects.
THREAT • High demand levels for residential projects in the
surrounding area form very good opportunity for
• Future real estate developments as competitive planned future developments.
projects.
81
RECCOMMENDATION & CONCLUSION
82
Draft Report
ANALYSIS OUTPUTS
MARKET OPPURTUNITIES
VERTICAL RESIDENTIAL COMPOUNDS COMPOUND ADDITIONAL DEVELOPMENT
One of the opportunities in market that we believe it has great Due to our experience and market knowhow, we have seen and noted several
demand and very few projects to serve, is the vertical residential additional developments to residential compounds available in other cities
compounds. like Riyadh and Jeddah, which we believe they reflect high investment return,
high occupancy rate and raise the level of attractiveness.
This type of compound will be composed of normal apartments and
duplex apartments with different size. In addition to all services and Executive Offices:
facilities located in the horizontal normal compounds. Small part of the compound development can have executive offices (100 –
150 Sqm each) sharing the same fence and can be rented by international
During our market research we have noted one vertical compound companies who be attracted by renting office space and accommodation for
(DHARAN TOWER COMPOUND) providing full set of services and their senior employees in the same project.
facilities.
Exhibition Area.
We don’t think Class A compound category can be applied on such Small area of the compound around (500 – 1000 Sam) can be dedicated for
project because of lack of spaces, still Classes B & C are very valid event hosting and exhibitions. Most of the high end products' companies are
to be done. looking for such an opportunity to introduce their product in such location,
especially when the people living in the compound are their potential client.
83
Draft Report
ANALYSIS OUTPUTS
PREFFERED INVESTMENT
In order to know what type of compound could be most preferable for investment ( after taking into consideration the tenant and investor point of view,), we have done
a comparison between the 4 categories by using grading system. The result is to give preliminary idea which category is the best for investment, yet many factors can
affect the results and change the output which we do not know at this stage such as lands location & prices, type of investment, BOQ and dev cost, etc..
COMPOUND ROI DEMAND OCCUPANCY DESIRABILITY FINISHING & FACILITIES & TOTAL AVERAGE
CLASS APPEARANCE SERVICES
RESULTS
A 4 4 4 5 5 5 27 4.5
B 5 5 4 5 5 4 28 4.7
C 5 5 5 4 4 3 26 4.3 A = 5.50
D 3 4 3 1 2 1 14 2.3 B = 6.95
5 = Very High 4 = High 3 = Average 2 = Low 1 = Very Low
C = 7.05
D = 6.55
B & C compound classes have very close

COMPOUND INVESTMENT RENTING RATES DEV. COST RENTING TIME TOTAL AVERAGE results and higher than the other classes.
CLASS
A 1 1 1 1 4 1
B 2 2 3 2 9 2.25 Class A Compound comes last, this does
C 3 3 3 2 11 2.75 not mean that this category is not a good
D 5 4 5 3 17 4.25 investment, but it means it is meant for long
term investment.
5 = Very Low 4 = Low 3 = Average 2 = High 1 = Very High
84
Draft Report
ANALYSIS OUTPUTS
RECCOMMENDATION
The subject property is zoned for residential uses only. Comparing the residential project types; Villas, apartment buildings & residential compounds, and as per the
market overview mentioned earlier in this report for these sectors we can clearly note that the highest demand in the market and the most stability return and occupancy
is the residential compounds. Especially when the land rate of the subject property still very applicable for such projects. From the previous analysis, and due to the land
size of the subject property we believe that the most relevant option is the Class B compound.
We have contacted several developers and engineering consultants in order to know the main elements that should be taken into consideration in designing residential
compound project, especially when the subject property has the ideal rectangular shape for developing compound project.
Land Shape
The best land shape to enhance the design of residential compounds is the square shape then comes the
rectangular shape. In some cases where the land has irregular shape, it is a bit tricky to have ideal master The subject Property has the Ideal Shape
planning for the project.
Web Concept
the web concept is to place all the main facilities and amenities in the center of the project to serve all tenants Can Be easily applied on the subject property
equally by developing streets and pathways in web shape.
Traffic Analysis
One the most important factors is to design the project to ensure the traffic easy movement as well as safety
The subject property has 2 sides open to
for tenants (especially children). In addition entrance and exit of the project should be done in a very efficient enhance the traffic movement
way to ensure the easy access to inside and outside the project.
85
Draft Report
ANALYSIS OUTPUTS
DEVELOPMENT ANALYSIS
Ratio Are - Sqm The subject project has land value of 32,546 Sqm which will be divided into 40% for internal streets and
Total Land Area 32,546
Internal Streets 40% 13,018
fences, 15% common area & Facilities and 45 % for residential units..
Common Area Facilities 15% 4,882
Residential Land Area 45% 14,646 We assumed 20% of The dedicated land portion for the villa units as backyard, and the remaining 80%
32,546 shall be multiplied by 2 to get the villa unit size.
Residential Units Distribution
Ratio Area - Sqm
Total Residential Land Area 14,646 In the apartment total BUA , we have assumed only 15% common area for stairs and elevator.
Villa Units 60% 8,787 Remaining area is the NLA.
Apartment Units 40% 5,858
14,646
Villa Units
Type Land Use Ratio Land Size - Sqm Effeciency Net Land Coverage No. Of Floors Total BUA Avg BUA / Unit No of Units
2 Bed Villa Units 25% 2,197 80% 1,757 2 3,515 160 22
3 Bed Villa Units 60% 5,272 80% 4,218 2 8,436 200 42
4 Bed Villa Units 15% 1,318 80% 1,054 2 2,109 275 8
8,787 7,030 14,060 72
Apartment Units
Type Land Use Ratio Land Size - Sqm No of Floors Total BUA Common Area NLA Avg Unit Size No of Units
1 Bed Apt 20% 1,172 2 2,343 351 1,992 60 33
2 Bed Apt. 40% 2,343 2 4,687 703 3,984 95 42
3 Bed Apt. 40% 2,343 2 4,687 703 3,984 140 28
5,858 11,717 1,757 9,959 104
86
Draft Report
ANALYSIS OUTPUTS
UNIT MIX & DETAILS
The most demanded unit in the residential compound are the 2 & 3 bedroom 45
units with almost 65% market ratio. 40
35
30
We also advise to avoid the Studio units and just keep the 1 Bedroom 25
apartment units especially when it serve the needs for both unit types. 20
15
10
The higher portion of the occupancy rates in the residential compounds comes 5
from the 4 bed units. Therefore, and to serve all tenant types we don’t think that 0
4 bedroom units should exceed more than 5% of the total units. 2 Bed Villa 3 Bed Villa 4 Bed Villa 1 Bed 2 Bed 3 Bed
Apartment Apartments Apartment
UNIT TYPE NO OF UNITS RATIO
No. of Units
2 BED VILLA 22 15%
3 BED VILLA 42 20%
4 BED VILLA 8 6%
2 Bed Villa
1 BED APARTMENT 33 19%
2 BED APARTMENTS 24%
16% 15% 3 Bed Villa
42
3 BED APARTMENT 28 16% 4 Bed Villa
20%
24% 1 Bed Apartment
The total number of units is 175 residential units, 41% villa units and 59% 6% 2 Bed Apartments
19%
apartment units. 3 Bed Apartment
87
Draft Report
ANALYSIS OUTPUTS
ROOM SIZES
1 Bed Apartment 2 Bed Apartment 3 Bed Apartment

Bedroom 15 Sqm 2 Bedroom 30 Sqm 3 Bedroom 50 Sqm
Bathroom 6 Sqm Bathroom 8 Sqm 2 Bathroom 15 Sqm
Living Room 20 Sqm Living & Dining 30 Sqm Living & Dining 45 Sqm
Kitchen 12 Sqm Kitchen 15 Sqm Kitchen 20 Sqm
Entrance & Common 7 Sqm Entrance & Common 9 Sqm Entrance & Common 15 Sqm
Total Area 60 Sqm Total Area 95Sqm Total Area 145 Sqm
2 Bed Villa 3 Bed Villa 4 Bed Villa

2 Bedroom 40 Sqm 3 Bedroom 60 Sqm 4 Bedroom 80 Sqm
2 Bathroom 20 Sqm 3 Bathroom 25 Sqm 4 Bathroom 35 Sqm
Reception 15 Sqm Reception 10 Sqm Reception 15 Sqm
Stairs 5 Sqm Stairs 5 Sqm Stairs 7 Sqm
Living & Dining 60 Sqm
Living & Dining 45 Sqm Living & Dining 50 Sqm
Kitchen 15 Sqm
Kitchen 15 Sqm Kitchen 15 Sqm Bathroom & Laundry 12 Sqm
Bathroom 6 Sqm Bathroom & Laundry 12 Sqm Maid Room 10 Sqm
Entrance & Common 7 Sqm Maid Room 10 Sqm Entrance & Common 8 Sqm
Stairs 5 Sqm Entrance & Common 8Sqm Stairs 7 Sqm
Total Area 160 Sqm Stairs 5 Sqm Office 12 Sqm
Total Area 200 Sqm Kid Room 13 Sqm
Total Area 275 Sqm
88
Draft Report
ANALYSIS OUTPUTS
FURNITURE & APPLIANCES
In order to achieve better revenues and in parallel In addition, some electronics should be provided
to all class B compound in the market, all the units with in each unit in the project to meet the Class B
should be fully furnished including but not limited to Compound criteria.
the following:
Kitchen Appliances: Others
Bedrooms:
Refrigerator Washing machine
Closets
Microwave Laundry
Cabinets
Oven Television
Beds & Mattress
Water cooler Satellite receiver
Internet connection
Living & Dining
A/C air conditioning
Dining Table
DVD
Sofa Set
Tables
Chairs
TV Cabinets
Other cabinets
Others:
Minor accessories
Curtains
Rugs, lighting, etc..
89
Draft Report
TENANT REQUIRMENTS
RECCOMMENDED SERVICES
120.00%
We advise to add all the
included service in chart 100.00%
100.00% 94.25%
while ignoring the semi 89.00%
furnished units and smart 81.25% 79.50%
systems. 80.00%
Having special forces as 60.00% 57.50%

security for the compound
will definitely boost the
40.00%
revenues by at least 30% 31.75%
more.
18.75%
20.00%
Currently the government
stopped giving license for 0.00%
Special Security Semi Furnished
such service. Services
Maintenance 24/7 Furnished Units
Units
Cable TV Smart Systems Nursery Transportation
Westren 94.00% 95.00% 95.00% 5.00% 100.00% 25.00% 23.00% 70.00%
Therefore, a very good European 95.00% 100.00% 100.00% 0.00% 100.00% 33.00% 39.00% 74.00%
Arab 79.00% 92.00% 60.00% 40.00% 100.00% 25.00% 85.00% 90.00%
security private company Asian 88.00% 90.00% 70.00% 30.00% 100.00% 44.00% 83.00% 84.00%
can fill the gap. Average 89.00% 94.25% 81.25% 18.75% 100.00% 31.75% 57.50% 79.50%
90
Draft Report
TENANT REQUIRMENTS
RECCOMMENDED FACILTIES
120.00%
All of the mentioned facilities
should be available in Class
100.00% 95.00% 96.00%
B compounds
83.75% 85.00%
80.75%
Some of additional facilities 80.00% 77.00%
74.00% 75.75% 76.50%
that we believe , and as per 66.00%
our market research,
60.00%
tenants will pay for are:
• Business Center
• Small Amount of 40.00%
Executive offices to be
rented if possible. 20.00%
• Management skills to
arrange occasional
0.00%
bazars & exhibition. Gym Outdoor Pools Kids Pools Kids Area sports courts Resturant
Recreation
Line Shops Coffee Shop Laudary
Center
Westren 95.00% 98.00% 44.00% 31.00% 76.00% 93.00% 80.00% 81.00% 85.00% 89.00%
European 100.00% 100.00% 64.00% 65.00% 84.00% 95.00% 88.00% 78.00% 80.00% 90.00%
Arab 90.00% 91.00% 100.00% 100.00% 85.00% 60.00% 75.00% 70.00% 95.00% 44.00%
Asian 95.00% 95.00% 100.00% 100.00% 90.00% 55.00% 80.00% 77.00% 80.00% 41.00%
Average 95.00% 96.00% 77.00% 74.00% 83.75% 75.75% 80.75% 76.50% 85.00% 66.00%
91
Draft Report
ANALYSIS OUTPUTS
UNIT RENTS & ESTIMATED DEVELOPMENT COSTS
RENTS DEVELOPMENT COSTS

We have got to know through the interviews done with tenants already working in compound’s management, that
usually the rent reviews in the residential compound sector happens every year with average increase of 10% - As an average, and without the furniture,
20%. Due to the upcoming supply in the market we prefer to conservative in our estimated and include 10% increase the overall development costs including
in year 2 since years 0 & 1 are for development period. hard cost, soft land, land developments
and facilities construction is around 2,8000
UNIT TYPE NO. OF ANNUAL RENT / TOTAL ANNUAL YEAR O YEAR 1 YEAR 2 SAR / Sqm.
UNIT UNIT RENTS
2 BED VILLA UNITS 22 SAR 170,000 SAR 3,740,000 SAR 4,114,000.0
3 BED VILLA UNITS 42 SAR 200,000 SAR 8,400,000 Construction SAR 9,240,000.0 While the furniture cost usually calculated
4 BED VILLA UNITS 8 SAR 220,000 SAR 1,760,000 & SAR 1,936,000.0 from 1,000 SAR – 1,300 SAR / Sqm
1 BED APARTMENTS 33 SAR 95,000 SAR 3,135,000 Development SAR 3,448,500.0
2 BED APARTMENTS 42 SAR 125,000 SAR 5,250,000 Phase SAR 5,775,000.0
3 BED APARTMENTS 28 SAR 150,000 SAR 4,200,000 SAR 4,620,000.0
175 SAR 26,485,000 --> 10% <-- SAR 29,133,500
SAR 300,000
SAR 200,000
SAR 100,000
SAR 0
Class A Class B Calss C Class D
92
Draft Report

Market Research Report For Residential Compound - Khobar

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MARKET RESEARCH REPORT

M/S KUWAIT FINANCIAL CENTER - MARKAZ

Subject: RESIDENTIAL COMPOUND MARKET RESEARCH IN KHOBAR, KSA

Dear Mr. Ahmad,

Issued without prejudice and liabilities

WHITE CUBES REAL ESTATE

SECTION 1: SECTION 2: SECTION 3: SECTION 4:

Real GDP Growth Rate

Agriculture, Petroleum , 2.50% Construction,

Money Supply & Inflation

Food & Minerals

KSA BUDGET OF EXPANSION 2015(F) Spending By Sector

Indicator 2015 2014 2013

Indicator 2015 2014 2013

Indicator 2015 2014 2013

AGE CATEGORY % POPULATION MALE %% FEMALE %%

The income distribution chart shows that

Estren Province Riyadh Makkah Others

DAMMAM & KHOBAR POPULATION (Mn)

1,200,000 1,152,005 1,173,191

INTRODUCTION COMPOUND COMPONENTS

CATEGORIES Housing Units:

Management & Operation

FACILITIES CLASS A CLASS B CLASS C CLASS D

SERVICES CLASS A CLASS B CLASS C CLASS D

DAMMAM– HOUSING UNITS BY NONE SAUDI

We have identified various exiting residential developments in Dammam/Al-Khobar

Overview Rental rate

• 80 residential units (2/3 bedrooms villas)

Overview Rental rate

• 40 residential units (2 bedroom villa)

Overview Rental rate

• 50 units (2/3 bedroom villas)

Overview Rental rate

• 21 residential units (2 bedroom villa)

• Swimming pool & Gym

Overview Rental rate

• 34 residential units (2 bedrooms villa)

• Swimming pool & Gym

Overview Rental rate

Danah compound is located in Khobar-Dammam highway comprising of a •SAR 200,000 –3 bedroom

96 villas of 220 sqm. & 8 executive villas of 360 sqm

•Gym & swimming pool

Overview Rental rate

91 one flat unfurnished villas:

•Gym, swimming pool & Squash court

Overview Rental rate

•Gym & swimming pool

Overview Rental rate

•Gym & swimming pool

Overview Rental rate

465 furnished residential villas (2, 3, & 4 Bedrooms)

•Gym & swimming pool

Overview Rental rate

159 double storeyvillas with garden, 3 bedroom:

•Gym & swimming pool

Overview Rental rate

•Health club floor

Overview Rental rate

Overview Rental rate

•150 sqm–3 bedroom (43 units)

•Gym & swimming pool

Overview Rental rate