Audience Insights: 4 Outstanding Consumer Insights of UAE Real Estate
Category Analysis – Real Estate
Regions – UAE
According to the recent market update from Egyptian investment bank EFG Hermes, total value of real estate sales transactions in Dubai was up 56% in third quarter of 2018. With the Expo 2020 in Dubai, real estate market is expected to boost growth in UAE. The 10-year visa rule introduced newly has potential to increase investment from expat community. People have realized that buying property is better than paying rent in the long term. In this report we offer insights into the consumer preferences according to the online discussions happening around the real estate topic.
The analysis is based on customer reviews and conversations online in the segment. The analysis results presented are completely unbiased and not based on any subjective judgement. The source data used for the analysis are user conversations available publicly online like public forums and social media.
Total number of customer conversations analyzed
4 Outstanding Consumer Insights of UAE Real Estate
Consumer insights is an in-depth understanding of customer behavior that is more qualitative than quantitative. It describes the role played by the brand in question in the life of its consumers. Consumer buying behavior refers to the study of customers and how they behave while deciding to buy a product that satisfies their needs. It is a study of the actions of the consumers that drive them to buy and use certain products. Consumer buying behavior studies about the various situations such as what do consumers buy, why do they buy, when do they buy, how often do consumers buy, for what reason do they buy, and much more.
For example, consumer insights gathered and studied by consumer researchers aims to know why women buy moisturizers (to reduce skin problems), the most preferred brand (Olay, L’Oréal), how often do they apply it (twice a day, thrice a day), where do the women prefer to buy it (supermarkets, online) and how many times do they buy it (weekly, monthly).
Understanding consumer behavior is essential for a company to find success for its current products as well as new product launches. Every consumer has a different thought process and attitude towards buying a particular product. If a company fails to understand the reaction of a consumer towards a product, there are high chances of product failure.
Real estate market seems to be picking up once again and is driving many consumers who were either not at all considering buying or people sitting on the fence, to now actively contemplate buying a house in UAE. Location and the cost of a house are the two main drivers that influence the decisions of home buyers. But there is more than that.
Clootrack analyzed 1,341 online consumer conversations that identify top 4 drivers that buyers consider before buying property in UAE. In this report, we will help you explore the different factors that lead consumers towards purchasing a property. Below are top 4 factors that consumers consider before investing their lives savings into purchasing a house.
1. Flat Cost
Buying a property might involve a lot of other fees such as developer fees, real estate fees, maintenance fees, land registration fees and so on which adds up to the overall cost of the property. This might add up to a fairly large amount of money leaving the consumer unprepared on financial planning. Hence consumers prefer to get a flat cost that is inclusive of all costs expected to be borne by the consumer. A flat cost will help the consumer in financial planning as there is no great deviation in the original budget since the cost of an all-inclusive cost.
Real estate transactions can be slightly easy when the consumers are looking at properties that are purchased by their friends or family. This gives the added cushion that it’s a property that consumers have either seen or heard from their friends and are at a litter better position to decide on buying it. Consumers prefer to buy property in a known community where a friend or family is staying and is recommended or endorsed by them. A consumer is at ease to by a property in a community when there are people talking the same language as his.
3. Quality Delivery
First obvious thing that a consumer checks is the quality of the construction. Consumers want to buy property that is built using branded materials and not local materials. Consumers are aware that the lack of quality in construction eventually will cause premature deterioration leading to loss of shelter and financial problems in the future. Hence it becomes important for construction companies to source best quality materials which at the same time are sustainable, energy efficient and environmentally feasible building materials.
4. No Local Complications
Consumers want to be most careful in making sure that the property they wish to buy should have no complications in the plan. Buyers are keen to know if the builder has obtained all required permissions. Property should have adhered to all the regulations of the local authority and not have any deviations from the plan. Real estate companies should build houses after seeking permission for every property else there is a chance of running into risk of penalties.
Consumers want to be most careful in making sure that the property they wish to buy should have no complications in the plan and has obtained all required permissions. They say that the property should have adhered to all the regulations of the local authority and not have any deviations from the plan.
Real estate companies should see to it that the houses should have been built after seeking permission for every significant development else there is a chance of running into risk of penalties.
Top 3 Emerging Trends
UAE’s real estate sector has grown and has taken great strides to emerge as a key real estate investment destination. With a series of large project launches and government initiatives UAE real estate is set to see growth demand for housing projects. Buyers are looking for creative plans and affordable budget before making the decision to buy a property.
Here are top 3 trends expected to shape the real estate industry in the coming years.
1. Ready made Designs And Budgets
Today’s busy consumers look out for ready made designs from which they can choose their best suited design. They are interested to see a wide range of ready made designs. The designs that are created by creative experts using the best technology is in demand. Home buyers are searching for uniqueness and creativity while selecting their home designs. It’s important for real estate companies to offer house designs that emphasis comfort and within affordable budgets.
2. Architect Designed And Fixed Cost Houses
Buyers of homes are looking for a range of architect-designed homes that come at fixed costs. Homes that come with an advantage of contemporary and traditional designs using high technology and quality materials is the preferred choice. Emerging trend is to build an architectural design home without spending more money or compromising on material quality. Consumers believe it’s about building a comfortable and fixed cost residence.
3. 3D Site Visits
Consumers want to look and feel their home before buying it. The virtual 3D visit can offer the consumers the feel of the home before they decide on it. Consumers can actually see the plan of the house and arrange furniture with the help of 3D software. Construction companies are offering virtual tour to simulate a site visit so that home buyers can visit it remotely.
Consumer data, when converted into useful insights, goes a long way in predicting customers’ future choices. By collecting and analyzing customer data, marketers get to know where to focus their time and effort to deliver an extraordinary customer experience. With the help of consumer insights, marketers focus on building marketing strategies, discounts, promotions, and social media messaging.
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