Amid intensified competition in the Gulf’s multi-billion dollar real estate sector, the region's leading players are increasingly launching sophisticated marketing campaigns, which - according to the Gulf Real Estate Study (GRES) 2007, is an emerging trend that showcases the rapid collective transformation of the region as a global real estate brand powerhouse.
The study noted that the growing sophistication of regional marketing campaigns and the increasingly proactive government support are collectively boosting the success of Gulf investments abroad. According to the GRES, developers are using more than large billboards and newspaper wraparounds to promote their offerings, as multimedia campaigns linking television, radio, print and online advertising are creating more cohesive marketing programs.
“While the Gulf may be one of the most prolific real estate markets in the world, many domestic developers are expanding their capital and influence overseas," the GRES report noted, citing the USD 10 billion worth of projects launched by Emaar in the United States.
"If you look around, real estate developers are increasingly making use of multimedia campaigns to promote their projects as they aggressively take their products closer to the customers. These intensified marketing campaigns also include the creation of more diversified financing options, establishing platforms for clients to inspect finished products, and greater transparency in providing pricing information," said Rina Plapler, Executive Director, Future Brand, a premier global brand consultancy firm and publishers of the GRES 2007.
"These trends point to the growing maturity of the industry in marketing their products. Moreover, intensified government support through appropriate property laws will further strengthen confidence in the GCC market. Overall, growth has been exceptional across the region, which has given GCC developers the momentum to diversify their investments activities in other sectors and in other countries worldwide," added Plapler.
Moreover, newly established real estate policies enacted by governments have also improved the region's image as an important real estate investment destination, particularly regarding freehold property, rent control measures, and establishment of a trust account law; creating a higher level of confidence in the marketplace.
The GRES report also revealed that real estate activities will continue to evolve and cover a wider range of interests: "As the development market matures, interests are expanding into different areas of real estate. In 2004, investors were generally seeking vacant residential land. In 2005, people were looking for residential buildings to purchase and in 2006 investors were favouring built commercial buildings, as their return on investment was fastest."
The GRES 2007 report is published for the third consecutive year by Future Brand, and involves substantial qualitative and quantitative research. In compiling the study, experienced global teams explored new trends, themes and insights in the region’s rapidly growing real estate sector.
