Lebanon's real estate estate market is witnessing more sophisticated marketing, public relations, and communications strategies from developers over the last several years. As more real estate companies are realizing the value of investing in building a brand, the competitive landscape is gradually changing, along with the rules of the game.
Building more than four walls
In the past, developers used to remain relatively anonymous to the public, naming their projects after plot numbers without any real interest in fostering a relationship with a target market. Today, more and more developers in Lebanon are seeking help from professional agencies to shape marketing, public relations (PR), and branding strategies. The focus over the last decade has shifted from the short-term sale to long-term overall growth, meaning that companies not only want to build impressive structures, but also impressive brands meant to last.
"It's about creating an image that is consistent with their projects," states Guillaume Boudisseau, real estate consultant of RAMCO Real Estate Advisers. The Convivium residential Beirut series by BREI (Byblos Real Estate Investment) created a strong affiliation between the quality and originality of the buildings and the brand of the developer. "For the consumer, if he buys a Convivium apartment, it's like buying a luxury car. He knows the quality behind what he's buying," Boudisseau explains. It's also about differentiation. "For example, District//S has created a visual anomaly with their name that people will not forget," he says. "Differentiation is key to being remembered in the market." And this differentiation should go beyond a name. An essential aspect of building a brand is finding a way to leverage real differences to create an edge, and link that edge to the character of the brand.
"The first development to set a real trend in branding was Marina Towers," says Jo Chemali, General Manager of the PR Division of Leo Burnett. By creating such an immense and symbolic development, Marina Towers became more than an apartment building. It became an address in and of itself. "Companies today want to build and personalize iconic addresses," he says. In the case of Marina Towers, the developer launched the project at the MIPIM Awards in Cannes, not to attract buyers in France, but to create an idea in people's minds that the Marina Towers project was offering the glamorous lifestyle of Cannes. The project concept became the lifestyle of the French Riviera, transported to Beirut. "This strategic move was zero percent advertising and 100 percent PR," says Chemali. Another, more recent project to employ an affiliation strategy is the Damac Tower. Pairing up with Versace for interior design, the Damac Group is using the strong brand image of Versace to boost their own, to make people associate Damac with the same product attributes of quality, luxury, and glamorous extravagance that they already associate with Versace.
The objective of this type of communication is to attract targets who want to associate themselves with the concept behind the development. Creating a concept for each development that a developer embarks on is a strategy that has worked particularly well in the case of high end property developer Greenstone, affiliate of Johnny R. Saade Holdings. Take the company's L'Armoniale project as a recent example, and it is evident that buyers who were attracted to the development felt that the values of the project - sustainability, preserving heritage, and a committed dedication to quality and detail - were well-aligned with their own values. "No matter what the benefits might be - we never compromise on the environment or heritage," says Karim Saade, General Manager of Greenstone Real Estate. "Selling this is part of our brand. And it has been rewarding to see how much our projects have been appreciated in the market for being developed in a responsible way that is consistent with what we promise to offer."
To build a successful brand, everything a company creates should be coherent with its brand image. Building a brand requires consistency and responsibility, to deliver on promises and gain trust in the market. If there is a lack of consistency in output, the image will collapse and valuable credibility will be lost. Brand building through conceptual development requires that all concepts share a common thread that has a real meaning that people can feel, and this thread should relate to values and attributes of the brand. Brand attributes are similar to personal attributes in that they make a company human and create a personality that triggers emotional associations. Positive actions in the community build positive emotional associations and help strengthen the brand. In turn, having a strong brand gives more impact to a company's actions, boosting the effectiveness of corporate social responsibility and enabling a developer to be a better leader in the industry, to develop a stronger niche presence, and to gain support and confidence for future projects from the right partners or buyers.
For developer BREI, values of creativity, heritage, and sustainability create the foundation of the brand, and attributes like being cosmopolitan, cultured, innovative, and responsible towards the community are reinforced through not only the projects, which consider how to improve the social surroundings of the project, but also support of Beirut Heritage, an NGO that advocates for the preservation of Beirut's old buildings. Due to this solid branding, the developer has had no difficulties cutting a clear position in the market and connecting with a target niche of young and refined individuals who value culture and see their own personal values reflected in BREI's projects. "So much of what has been done recently was designed with foreigners and expatriates in mind. My objective is to create a product that answers the needs of the local Lebanese," asserts company founder Karim Bassil. The brand also has become a useful tool for securing the success of upcoming projects. "Prospective partners have come to me to suggest working together because they know what BREI stands for, and they appreciate what we do," he says. "Having a strong brand attracts the right partners to complete objectives in line with the values your brand stands for."
Maturing demand... demands better brands
The market for high end apartments has matured, slowing to a point of near stagnation. Competition between developers of high end projects has increased, as demand for luxury housing cools off. For companies that spent the last several years investing in a brand, the slow-down effect is less. "In times of stagnation, people are looking for the best ratio of quality to price," says Saade. "This is where brand building really comes into play. This is when having bet on your brand pays off."
Expectations of the high end market have also matured. "People are no longer looking to buy a building. They want to buy a lifestyle," underlines Chemali. "They don't want you to sell them real estate - they want you to sell them a dream." Buyer expectations rose with the real estate boom in Dubai, and as a result the market is demanding greater sophistication and intelligent living spaces. "Whereas 10 to 15 years ago real estate companies didn't think much about a communication strategy, today PR and positioning are two things that developers think of first, at the beginning of the project," states Chemali.
But brand building is about more than PR. Brand building starts from deep within the company through investments across the board - from human resources and marketing to improving internal and external organizational processes. "Does good branding help to sell more in the short term? No. But it does help to create an image that endures, to build loyalty, credibility, and a reputation that will pay off over time," says Boudisseau. When buyers are facing hesitation about choosing whether to buy now or wait, having a good image that confirms professionalism they can trust can make the difference between making a sale or not.
Playing the game
"In the end, there are two types of developers. The ones who are building to sell and don't care who buys it as long as they get a profit out of it, and serious developers with a long-term strategy," says Chemali. Serious developers want to sell to people who have an intention to live in the building and make it a permanent residence. "They have a vision for the future; they are shooting to have 60 percent of the building's primary residents be Lebanese who live there year-round," Chemali adds. This category of developers wants to create living buildings that become an organic part of the city, because they realized that these buildings will represent them. Developers have realized that the types of residents and the lifestyles they lead, the impact of the building on the surrounding area, and how well the building is maintained over time all will impact their reputation and brand image for better or worse.
Under current market conditions, however, it is a challenge to get local Lebanese to spend a large amount of money on luxury housing, especially when there is over-supply in the market. The stakes of competition between developers have therefore gone up. Because of this, branding plays a more important role in reeling in the buyers with confidence, and seducing them with a concept. "Branding now plays a greater role; it's not just about selling square meters," Chemali explains. "You're talking to millionaires who want to see and be seen, and you're talking to expats who want to reward themselves with the kind of lifestyle they suffered for and dreamt of being able to have for long years working abroad. You need to associate a development with the lifestyle these people are longing for."
The bottomline? Simple advertising doesn't work anymore, and neither does a straight forward approach that lacks creativity. Generic advertising in print media or on billboards with simple sales-oriented claims like "ultimate luxury living" or "sea views" no longer works. Claims like these are so overdone that they barely catch anyone's attention anymore, which kills the point of advertising in the first place. These cliches can even have a negative effect by communicating that there is nothing more unique or interesting to say about the project. Claims like "the best" and "the most" can also be detrimental as they arouse suspicion, since the claim is likely exaggerated. Aggressive marketing also stinks of desperation, which is a turn-off to discerning buyers.
What does build a brand that draws interest is indirect persuasion, clear positioning relative to other projects on the market, and a subtle but persistent presence in the media. Using PR as a main platform works by building all communication around core messages that reinforce the identity of the building, and indirectly, of the developer's brand. Employing mass market media channels like TV, radio, newspapers, and magazines to get messages to market through advertising is less effective for brand building than using more subtle methods of communication with a specific target group, whether through channels like online social media or effective public relations with media outlets. There is a difference between being mentioned in a newspaper article on a subject related to your brand's values, and buying a whole page in the newspaper for an advertorial about your company. The former builds credibility, while the latter only boosts visibility.
Choosing the right name for developments also contributes to a brand. If being innovative or one of a kind is something that a developer wants to be associated with, for example, then the name of the project should be original. "People want a name that enters the mind... and sticks," says Boudisseau. "If a project name includes words that are overused on the market, like tower, heights, garden, view, port, bay, park, terrace, green, plaza, residence... it is too common to be attractive." It is also inconsistent with many of the brand attributes that real estate developers are trying to reinforce in today's competitive market.
Smart branding pays off in the long-run. And in the short-run, there is also a certain price premium that is justified by having a certain reputation for quality, or offering a particular lifestyle concept. "You're not only paying for the location and the apartment, you are paying for the facilities, the intelligence of the layout, the daily life that you can live out of that home," Chemali says.
Strong branding also supports growth. "It creates a system for everything I do," Bassil confides. "I no longer need to rely on using my name to gain credibility; the company name is enough, and this has helped me to grow my business, expand, and have a strategic vision for the future," he adds. In Lebanon, a brand makes a company name become like a family name that people recognize. Brands build relationships and create commitments, and this builds trust.
Landmark projects create landmark cities
Of the developers who are following a clear branding strategy in Beirut, many are focused on building landmark projects that will get their company noticed, time and time again. However, apart from being an iconic address, these landmarks should also fit in with a developer's brand. In the case of L'Armonial, it naturally fits within the philosophy of Greenstone's brand, which stands for high end, high quality, innovative, sustainable building. This is a landmark project that therefore reinforces the brand of the developer and leads to greater brand recognition. "L'Armonial became a landmark in its own right," confirms Boudisseau.
"It's a private sector contribution toward something that should already be there," says Saade, referring to L'Armonial's preservation of heritage, and the more recent La Broceliande's commitment to environmentally sustainable building. "And there is a financial sense in doing things like this as well," he adds. Buyers are willing to pay a premium for higher quality, if communication about the quality level is effective, and if they trust the developer. A strong brand secures that trust. And this trust extends to not only the buyers, but to other developers. When a company proves its commitment to quality and innovative solutions that endure, it becomes a leader for other companies to follow. In the case of L'Armonial, it inspired other developers to follow Greenstone's lead in preserving heritage by integrating old structures into modern projects. "We're presenting solutions that other developers can use," says Saade. "And we are happy if they do so."
Landmark projects do more than create and build brands. They impact the character and soul of the city, whether it is constructively, or destructively. If constructive, then a landmark project can also boost the property values of an entire area. For example, Marina Towers and the upcoming waterfront project Zaitounay Bay have both contributed to price increases per m2 on the Beirut waterfront. Developers who want to pursue landmark projects therefore also bear a responsibility to society for what they construct. After all, these are not only cold structures of stone and brick, but buildings that will together build the new face of Beirut.
By building a brand, a company becomes accountable for its contribution to the skyline, but also reaps the rewards of having made a positive difference with a landmark project that adds value not only to the reputation of the company, but to the lives of the people who will make that building a living element of a landmark city.
© Ekaruna 2011
