Project stardust: why Dubai developers still want celeb tie-ins

September 18, 2024, 2:55 AM

Lionel Messi poses for a photo at Dubai Expo 2020. He and his Argentina teammates will soon be appearing on 'giant billboard on Sheikh Zayed Road' to advertise property — Lionel Messi poses for a photo at Dubai Expo 2020. He and his Argentina teammates will soon be appearing on a 'giant billboard on Sheikh Zayed Road' to advertise property

Can drive up prices and sales
But the costs can be massive
Star must be aligned with brand

Lionel Messi, Rohit Sharma and Chris Hemsworth are just some of the famous faces who have promoted UAE real estate in recent years.

Superstar sportsmen and Hollywood heroes do not come cheap, but are they really a good investment for developers or just an excuse for the CEO to get a selfie?

Many industry observers think endorsements can lead to faster sales and higher prices – if they are done well.

Austyn Allison, a Middle East advertising expert and AGBI columnist, says an endorsement’s success depends on how well the developer, the celebrity and the intended audience are aligned.

“If you have a development for young execs, it would need to be someone young and dynamic who endorses it; someone with gravitas and class for a high-end development, and someone with strong family values – so not a geriatric or a playboy – for a project geared towards families,” he says.

For Dmitriy Starovoitov, founder of Almal Real Estate Development, endorsements can be a “game-changer” in Dubai’s competitive market.

“Developers aren’t just seeking a famous face; they’re aiming to convey the aspirational lifestyle these figures embody,” he says.

Prestige One Developments is the latest to test this strategy, signing a deal with the Argentine Football Association this month.

The Dubai developer will sponsor the AFA across the Middle East, while Messi and his World Cup-winning teammates will appear in Prestige One’s latest campaign “including a giant billboard on Sheikh Zayed Road”.

Daniel Hadi, CEO at estate agency Engel & Völkers Middle East, says celebrities of Messi’s stature increase a project’s credibility, put it in front of a global investor pool and often allow developers to charge a premium.

“While the upfront costs are high, the association with a global figure can lead to faster sales, higher values and a stronger long-term brand presence,” he says.

Allison also advises companies to consider carefully how they spend the “brand ambassador” budget.

“If you are a developer with a $1 million budget and it costs you $1 million to licence Simone Biles to promote your sports-themed housing complex, then you have no money left to fly her to your launch, to pay for the posters with her name on, to pay your PR company to get her name in the papers,” he says.

Many endorsements in Dubai real estate and other sectors feature Bollywood actors or other Indian celebrities, as developers cater to the growing number of affluent South Asian buyers.

Film star Shah Rukh Khan visited the emirate in June 2023 to help launch Emaar’s $20 billion Oasis project and Rohit Sharma, the captain of India’s cricket team, has linked up with developer Aldar to promote Athlon, its “active living community” in Dubai.

Rohit Sharma at a product launch in Mumbai. The India cricket captain is also working with developer Aldar in the UAE

Hollywood gets a look-in, too. In 2019, property listing platform Bayut paid an undisclosed sum to Hemsworth, the Australian actor who plays Thor in the Avengers movies, to appear in one of its ads. The company later said the campaign significantly increased visits to the website.

Lavish developments with large marketing budgets are not uncommon in Dubai – and spending some of that money on a big-name endorsement might help the project stand out, says Matthew Green, CBRE’s head of research for Mena.

He believes, however, that this tactic “has been overdone” in the UAE.

Not all developers are interested in this approach.

Tizian HG Raab, head of PR and communications at Azizi Developments, says endorsements can be “highly effective” when “executed correctly”. He adds, however, that his company prefers to focus on construction quality to cultivate “word-of-mouth” referrals and “repeat purchases”.