IT IS approximately eight years since Mada Al Sharqiah Real Estate Development Company (Mada) was established as the first private real estate developer in Saudi Arabia’s Eastern Province, and can claim to have made the successful transition from market pioneer to leader.
Developing high specification projects which are fully in tune with current market requirements and tastes, Mada’s growth strategy is founded on the provision of affordable housing, a pressing issue in a kingdom facing housing shortages, rising land prices, rapid population growth and an undeveloped home financing infrastructure.
Salim Al Joaib, the company’s general manager says:“There are many factors affecting the speed of growth (of the real estate market) in the Eastern Province – for example the lack of a supreme body for real estate that regulates the industry and develops future urban development plans; delays caused by government procedures and services; the continuing rise in land prices by up to 15 per cent annually; labour shortages; fluctuating prices of construction materials; and contractors’ failure to commit to the initial delivery dates of the projects.
“However, the Eastern Province is attractive because of its proximity to the Gulf states, and the presence of major companies such as Saudi Aramco, Sabic and others,” he adds.
Mada’s current real estate portfolio comprises three residential projects with a total of 138 villas representing an investment of SR560 million ($149.3 million) strategically located in Dammam and Al Khobar, close to the Saudi Aramco compound and key transport nodes connecting urban, commercial and industrial centres in the Eastern Province and GCC, and just minutes from King Fahd International Airport in Dammam.
“Some 90 per cent of Mada’s customers are from Saudi Aramco,” Al Joaib confirms, pointing out that Mada is looking to build its affordable housing market share over the next two years as the kingdom addresses the key issues facing the market.
Mada says its real estate projects blend functionality, quality, style and competitive pricing, meeting customer expectations.
“We don’t sell villas – we sell culture,” says Al Joaib. Mada’s investment projects are developed based on comprehensive market research and a sophisticated customer relationship management tool which accurately gauges customer feedback and requirements on key parameters such as execution rate, attractive sale prices, positive after sales impressions and the social acceptability of its policies.
Once a project’s viability, scope and specifications are approved, Mada then relies on its strong project management skills to deliver on time, to the highest standards of craftsmanship and material quality.
“In my opinion uniqueness and excellence in the real estate industry begin from the exterior and interior design of the property, through the exploitation of spaces that serve small or big families and which meet the habits and nature of society,” the general manager states.
“This is in line with our main goal in Mada that aims to touch this requirement with carefully understanding our clients’ requirements and providing a unique design which considers room count and cost,” he concludes.
Such a policy will undoubtedly provide a valuable guiding light as Mada plots the next phase of its growth, in keeping with Saudi Arabia’s burgeoning real estate requirements.
