A total budget of SAR 6.6 million is recommended for 2016 which includes the marketing and sales expenses associated with contract origination and the ongoing positioning of the Dar Al Tamleek and PPA/Masakin brands. Overall response rates have been impacted since the implementation of new SAMA regulation limiting residential real estate financing to 70% of the property value (70% CTV). In order to neutralize dwindling response rates in the market place, Dar Al Tamleek will need to increase expenditures in marketing activity to reach a more finite segment of qualified customers. In addition, we envision credit in the marketplace tightening in 2016 with banks exiting or reducing lending activity providing Dar Al Tamleek an excellent opportunity to further increase our brand awareness in the marketplace.
Marketing objectives are to drive more qualified customers into our sales platform by increasing our media presence from both offline media channels (Newspapers, Unipole, exhibits, etc.) and online advertising (Search & Network affiliates, Social & Business Media, digital news agencies, etc.). In addition, we plan on participating in three additional real estate exhibitions in 2016, as past exhibits have proven successful in increasing our brand awareness in the market while increasing response rates for other marketing channels. Furthermore, to enhance our business development channel, we will deploy outside sales coordinators to increase business development efforts targeting real estate professionals dealing with higher end customers.
The following is a summary of the required marketing budget (SAR) by line item: