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Strong branding to help firms weather correction
Strong brand recognition could help real estate developers in the Gulf weather any future slowdown in the market, one of the authors of Futurebrand’s Gulf Real Estate Study said on Wednesday.
Speaking on the sidelines of Cityscape, Futurebrand senior executive director Rina Plapler said strong branding meant developers could retain investors’ confidence even in times of trouble.
“Strong branding may mean developers are better able to withstand any correction in the property market,” Plapler told Arabian Business in an interview.
“We tell our clients the best strategy is to have a very compelling brand that helps you have loyalty in the long term. So even when [bad] things happen, you are not the one that takes the biggest hit.”
Several recent studies of the Dubai property market have forecast a correction in the market, with some predicting prices are set to drop as much as 20 percent over the next few years.
Plapler said a correction would likely happen as some point in the future, but would not speculate as to when that might be.
“We have seen seven or eight years of considerable growth and now there is a hint of corruption and tighter regulation, so it will be interesting to see if the market will continue to mature and evolve or whether these things, coupled with the economic global crisis, will trigger more of a downward trend in the market,” she said.
Futurebrand’s Gulf Real Estate Study, released on Wednesday, ranked Dubai’s Emaar Properties as the most highly rated developer in the Gulf.
The study, which surveyed 250 recent and prospective homebuyers in Saudi Arabia, the UAE and Qatar,, also found Dubai was the most desirable location for a second or vacation home in the Gulf, followed by Abu Dhabi.
Kuwait was ranked the least desirable location for a second or vacation home.
The study found the most appealing apartments were those overlooking water (84 percent), high-rise apartments in the city centre (75 percent) and those in golf communities (64 percent).
It also found four of the top five most important drivers of developer preference - high-quality construction, trustworthy, responsive customer service and good value for the money - focus on reliability and emotional comfort.
To view the full Futurebrand Gulf Real Estate Study report, click here.
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