Category Archives: Real Estate

Back Combined Co (BCC) | The Best Contractor & Construction Company in Kuwait

Walid Shaaban founded Back Combined Co (BCC) after working for more than a decade at First United Company. Few years after founding the company, Back Combined became of the most respected companies in Kuwait. Their projects are all over Kuwait, and they build complex and unique projects that very few contractors can build in Kuwait. The are a lot of reasons that Back Combined is rising so fast in the industry. The main reason is that they work with the client as a team not as an enemy. I realized lots of client contractor relationship becomes more of enemies than a team or partners. Also Walid Shaaban is the type of person who never run away from any issue, he will fix it and will find a solution regardless how challenging the issue is. He has a reputation in the market for sticking to his word even if he is at a disadvantage. There is also one great thing about Back Combined where they seek continuous improvement and they never want to stay at the same level. Lastly they constantly research new materials and find ways for customers to save money, and they are willing to take the risk by trying new materials that makes the building process for efficient.

Back Combined is building projects that makes Kuwait a nicer place. Check out the rest of their projects on their website and their instagram page. There are lots of great projects that is worth seeing. If you decide to build a property, considering Back Combined is a must.

 

 

Sean Zanganeh | Kuwaitis Favorite Real Estate Team in San Diego California

Back in 2005 there were a lot of real estate exhibitions in Kuwait where they sell real estate abroad. The main countries where they sold lands and homes were Jordan, Oman, UAE, and Egypt. I remember we bought two lands in Ras Al Khaimah in United Arab Emirates. Each land were offered at 10,000 KD, but we were able to negotiate each land to 5,000 KD. What we got during the exhibition was a receipt from the real estate company and it wasn’t the deed, and it took us 7 years to register our names in the registry. During that time, we realized that the real price of the land was 1,500 KD only. We were ripped off all the way, but this is how 99.9% of companies operate here in Kuwait. During the same year we bought 2 houses in Egypt from the same exhibition. They showed us very nice renders of the houses and they also showed us the plan for the project. They always tell you those 2 homes are the only one left marking other ones as sold to create a sense of urgency to purchase. We bought 2 homes back in 2006 and until today the project didn’t finish construction. The real estate company in Kuwait took their big cut and they left us to fight in court with the property development company in Egypt. We literally won the case Q4 of 2018 but it didn’t mean much because we spent thousands of Dinars on lawsuits. We also bought some lands in Oman from someone we know, and the experience was even worse. We bought 4 lands at an expensive price, but when we saw the deed it didn’t have our name. We asked the person who sold us the lands, he said oh I forgot to mention that you need to pay another fee for name transfer in the registry which is about 12% of the cost of the land. We were deceived big time, but sadly things aren’t regulated here in Kuwait.

Our experience buying real estate abroad has been terrible until we met Sean Zanganeh in San Diego California where things have completely turned around. I met Sean Zanganeh back in 2012 when we were interested in buying properties in Orange County, CA. Sean is a very organized person and very detail oriented. He knew exactly what we wanted and he helped us find the best deals. We almost doubled our money in 1 year with one of the offices that we purchased through Sean. Sometimes we find deals that we think are amazing, and he always tell us if he really think if the deal is worth it or not. Back in 2014 there was a company in Kuwait selling properties in Detroit for $50K to $60K and the returns are up to 15% where you get monthly rent. My friends were going crazy about the deal so i was getting calls all the time about what I personally think. I asked Sean and he told me that it seems fishy to him. When I told my friends, some believed Sean and didn’t buy, and some didn’t because their family bought through that company and they were getting monthly income so they started to buy more properties from the same company. Suddenly few months later all the monthly income stopped and the company owners are no where to be found. It was one of the largest Ponzi schemes in Kuwait, and the owners made $200 million dollars and escaped Kuwait. All my friends should have listened to Sean from the very beginning

Any Kuwaiti who is interested in buying real estate in California. I always recommend going to Sean Zanganeh, and as soon as they meet him and work with him. He instantly becomes their favorite real estate agent, because Sean is trustworthy, honest, and fully transparent.

 

What Will Happen To Real Estate After The Summer

Everyone is wondering what will happen to the real estate market in Kuwait after this summer. People in Kuwait are worried that a lot of expats are leaving Kuwait for good. Most of those who are leaving for good were either laid off from the government or from private companies. The rest can’t afford to stay in Kuwait anymore, because it is getting extremely expensive. A lot of those people said that their kids school tuition is ridiculous and having their kids go back to their homes will save them so much. I don’t blame expats for leaving Kuwait, and I understand how expensive Kuwait became the past 2 years. The government increased the prices of gas, electricity, water, and medical fees. Kuwait is at a stage where they need the additional income due to the low oil prices for the past 3-4 years. I believe rents will be lower in residential towers, so after the summer will be a great time to negotiate. Even in commercial towers you see vacancy increasing, but landlords don’t want to lower prices. You see companies leaving their offices in Kuwait City, but the landlord doesn’t want to drop their rent prices. They would rather keep the office empty for a whole year or more, and not lower their pricing and have someone rent it. I realized that landlords in Kuwait have so much ego and most of them aren’t logical at all. Even the listed companies operates the same exact way. I can’t believe that they would rather satisfy their ego rather than the shareholders.

“Prices will continue to drop and expats should negotiate their rents and get better deals because vacancy is increasing and will continue to increase.”

Real Estate Recession in Kuwait

Real estate in Kuwait has been crashing since summer 2017, and it will continue to get worst in the upcoming months. This time the recession will be worse than all the previous years and I will list all the reasons below.

1- Increase of interest rates : Most real estate investors in Kuwait invested 30% from their pockets and the rest is a loan from the bank. Interest rates were very low for a very long time, so they got used to pay small installments. Now interest rates are increasing, and the installments average per year is increasing.

2-Vacancy : Vacancy has been increasing more than ever, and most renters in the market are expats. Expats are leaving Kuwait due to the increase of cost of living leading to more vacancy. The increase in vacancy is creating an issue for landlords who borrowed money to build their properties, because their expenses is increasing (interest rate increase), and their income is decreasing (increase in vacancy).

3- Cost of Living : Cost of living is increasing in Kuwait forcing expats to leave the country. During the last 2 years, the government increase the cost of gas, electricity, water, and medical fees. There is also the tax on wire transfers for expats, which goes up to 5% per transaction.

4- The Overall Economy : The economy has been going down and the purchase power has been decreasing. The income of restaurants, retail, and businesses is declining all the way. You see retail have constant Sale to get rid of the supplies they have. You also see stores and businesses shutting down and laying off employees.

The problem with the Kuwaiti real estate market is that it is filled with junky properties. There are very few nice properties in the market, and very few properties are well maintained. Real Estate agents are more desperate than ever to sell any real estate. They really don’t like it when someone tell them that the market is crashing, and they always say that the real estate market will appreciate.

The real estate market in Kuwait is crashing and it will continue to do so. It is a buyers and renters market, they are the ones who will negotiate from a position of strength. For those who are renting, you can negotiate your rent, because vacancy is increasing on daily basis.

Best Airbnb Apartments in Kuwait

I am a big fan of Airbnb rentals, because you find really nice properties at a really good price. I personally rent my homes in the US on Airbnb, the platform is extremely user-friendly and fun to use. Coming back to Kuwait, I realized that Airbnb isn’t that popular yet, and the apartments have the worst designs. Even the pictures of the apartments are terrible. The pictures seem as if they are taken with an old Nokia phone. Airbnb in Kuwait need some modern and luxury apartments for short-term rentals.

Jadeite Group | Planting The Seed of Change in Kuwait

KUWAIT: The Jadeite Group announced the signing of a contract for the construction of its private residential building under the name Jade. The decision was announced at a press conference held at the Holiday Inn Hotel in Salmiya on Thursday.

The Jadeite Group is a closed shareholding company established on November 16 , 2016 that aims to raise the level of residential and commercial real estate in Kuwait. Through Jade, the real estate developer seeks to implement design excellence, execute distinctive construction mechanisms, as well as redirect the market’s focus from developing structures solely for the purpose of pro table gain, but instead emphasize on providing superior standards of living.

As a prestigious property developer, The Jadeite Group strives to leave a mark on Kuwait’s real estate landscape and aims to elevate Kuwait’s infrastructure. The Jadeite Group are con dent that the clients of Jade will have a strong appeal to the project.

“The Jadeite Group intends to develop properties that are masterpieces throughout the region, while helping to establish visionary business concepts. With a primary focus on real estate development and ownership, The Jadeite Group has a specific interest in residential and commercial towers. The Group places secondary focus on assisting, partnering with, and establishing truly outstanding businesses and startups. With a passion for quality, commitment to ethics, and a roster of long-term professional relationships, The Jadeite Group is a world-class business you can trust,” said Mohammed AlMatrouk, Chairman, Jadeite Group.

Between the 1960s
and 1970s when
Kuwait’s infrastructure
was on the brink of
development, buildings
erected during this p
period were characterized
with distinct designs and
unique quality.
“Unfortunately, those
standards are rarely
applied today. Property developers prioritize 
their strategy on financial returns, consequently over- looking design and quality features. It is evident throughout the country’s residential areas that there’s a lack of originality coupled with poor construction practices. As a result, the majority of structures lack uniqueness as well as a sense of safety,” he added.

“It is also clear that car parks have become a major problem, especially in residential zone areas, where tenants often struggle to park their vehicles. In addition to scarcity of car park space, landlords have resorted to renting out their building’s basement for storage purposes in return for not providing parking services to ten- ants,” stressed Al- Matrouk.

“Furthermore, small- size apartments have now become the standard, averaging 60 square meters for a two- bedroom space, which is not ideal for comfortable living. Another common problem is the hegemony of the guards that look after the residential towers and often exploit tenants in numerous ways, which is a dissatisfaction in the market,” he further said.

The Jadeite Group derives its name from the precious jewel that’s characterized for its clarity, quality, and high-value properties. Similar to the eponym gem- stone, the company’s philosophies are based on superior quality, ethics, and integrity. In addition to the principle that honesty establishes long-term trust between the organization and their clients, Jadeite’s properties are built with the highest quality materials and the best construction practices. Each property owned by Jadeite Group is an icon; elevating the design and quality standards in its surrounding areas.

The Jade building is designed by award-winning architecture studio Studio Toggle and will be constructed by reputable local contractor Back Combined Co. The three organizations share a common goal: Building a uniquely designed housing project in Kuwait.

Jade is a unique building that will appeal to its clients. “It’s equipped with a vast car park that covers the lower two basement floors that provides convenience to tenants. It also offers spacious and comfortable apartments, which are flooded with a great deal of natural lighting. The management of the building will be entrusted to professionals who are well-versed with technology and are quick to respond to maintenance services through the modern application and automation aspect of the property,” he explained.

“Jadeite Group is con dent that Jade will mark the beginning of change in the local real estate development market and strongly believes in the positive impact of this modern state-of-the-art building,” concluded AlMatrouk.

Source “Kuwait Times”