New UAE property climate calls for intelligent marketing strategies

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The current state of the property market will necessitate an immediate shift from wanton campaigning to more structured and intelligent strategies, said Sana Bagersh, CEO of BrandMoxie, a leading marketing firm based in Abu Dhabi.

Bagersh said:

'There has definitely been a shift from seller market to buyer market, and this means that the advertising spin should also change. Advertising more than ever needs to be more sophisticated and more attuned to the needs of the buyer; one who is most likely to keep the property over a longer time than flip it for profit.'

She said property marketers would be well advised to address the fundamentals of marketing and not resort to 'desperation-driven' advertising. 'The downturn will certainly affect buying power and interest but sound strategic marketing will help to attract the new profile of buyer that will dominate the landscape. For property developers and middle-men, the challenges will mostly likely separate the wheat from the chaff; enabling the more robust companies to maintain leadership through more intelligent selling strategies and sound communication.'

Bagersh explained that the advertising landscape has long been confusing for buyers, who are often subjected to mediocre advertising that fails to adequately differentiate the property being sold.

'The result is often a frustrating mish-mash of offerings, with information that lacks focus and doesn't provide enough insight for the buyer to make a decision,' she said.

The market is currently characterized by several key trends, she explained. Some of the big property companies are opting less for tactical campaigns and focusing more on broad branding that projects the company's strength and credibility, in a bid clearly aimed at allaying investor fears and establishing sector leadership over the longer run. Off-plan developers are increasingly using campaigns that communicate that their projects are off the ground and on course for delivery, and in doing so sometimes raise more doubt and compromise their brands. Meanwhile some of the smaller entities that are having a harder time weathering the new economic climate are resorting to 'quick and dirty' tactics that are aimed at offloading distressed properties.

'Unfortunately one communication approach or solution doesn't fit all. But the winners will be those who present their brands with clarity and combine this with an easy to understand explanation of the financials. Through it all they would still need to project integrity, strength and customer-service. Naturally investors at times like these will flock to the larger entities with the established brands, as they are perceived as being less likely to default.'

The key in advertising is to reduce clutter and non-essential messaging. 'As an example, oftentimes you see three or more brands competing for attention in a single advertisement. You have the name of the developer, the property name, the marketing company, the financial institution, the architects, the interior designers etc. Sometimes this makes it hard to discern a single voice on the other end of the negotiating table.'

The new property environment will be dominated by buyers who are likely to be the final owners of the property. So the shift in strategic communication, Bagersh said, should be in details that would appeal to the homeowner and not necessarily the investor; information on the 'benefits and features' of the properties in a way that makes it 'tangible and tactile'. 'An example would be to focus on the kind of wood flooring or the proximity to children's parks, schools etc. This would make the property livable and far more enticing to the buyer,' she said.

BrandMoxie is a marketing firm that provides high end advertising and strategy communication consulting. It works with several real estate companies that have operations in the Middle East, Africa and Eastern Europe.