End of the price boom: are brokers waiting for a new brand strategy? | property

According to a study by the Immowelt broker portal, the end of the price boom on the residential real estate market is approaching. In ten of the 14 largest cities, purchase prices will stagnate or fall by the end of the year – time to sell? Experts say competition makes brand strategy existential.

Real estate experts see the end of the seller’s market: for real estate agents it is in the current market environment – in shape of due to high competition The consistent brand strategy “essential for survival” is the basis for an expert discussion attended by the software developer FIO Systems, attended by approximately 100 participants. Everyone emphasized that marketing activities must be in line with a predetermined strategy.

Real estate agents today need to target real estate sellers in particular, which works best when offline. If the real estate market trend changed and more buyers were to be addressed, your online marketing efforts would become much more important. “Buyers use online tools much more,” said Sergej Missal, sales director of S-Immobilien Heidelberg GmbH.

Marketing: Most brokers rely on online advertising

For independent brokers who are not integrated with banks, the marketing budget is between ten and 15 percent of sales, as the so-called “FIO Brunch” has shown. Generating leads is especially important here.

“A strong brand needs high recognition and must be present locally. We basically rely on online measures as well as offline marketing, ”explained Thorsten Braun, department director of the Real Estate Competence Center at VR Bank Südpfalz eG. Offline marketing works better with real estate sellers who are often older. “It’s always about communicating reputation, trust and knowledge,” says Braun.

When asked to focus on marketing, the majority (54.8 percent) of participating brokers said they focused on the internet, only 6.5 percent said they continued to focus on offline marketing. More than a third of respondents (38.7 percent) cited a balanced online and offline connection as a recipe for success.

“Strong brands live on recognition value, design language and emotion – and show attitude,” said Malte Ploghöft, marketing director at FIO. ”

Study: Real Estate Trend Reversal in Sight

According to a study by the brokerage portal Immowelt, the signs on the residential real estate transaction market are already selling. The time of big increases is probably over. Immowelt predicts a stagnation or a slight decline in purchase prices by the end of the year for ten of the 14 cities surveyed above 500,000. residents. Existing flats (75 m2, three-room, first floor, built in the 90’s) were examined. In addition to the long-term development of real estate prices, the changes in the consumer price index and the interest rate on construction loans were also taken into account.

“After the yearly increase in prices, purchase prices in most cities will move sideways in the future. There are already slight downward revisions in some places, ”said Felix Kusch, Country Managing Director Immowelt.

The time has come in Frankfurt am Main, according to the study: by the end of the year, according to Immowelt, purchase prices are likely to drop by a significant five percent this would be the strongest change in the analyzed cities. According to calculations, in December 2022 a square meter in Frankfurt will cost EUR 6,260, currently it is EUR 340 more after EUR 6,600. Following an explosion in prices in the last decade, rising interest in construction triggered the first downward revisions.

Will it soon be time for buyers in Berlin too?

In addition to Frankfurt, according to Immowelt, Berlin is also one of the cities where the price boom will soon end. The capital is expected to decline by three percent by December. The price per square meter of existing housing has thus dropped to below € 5,000 So buyers only have to pay € 4,890 at the end of the year. According to experts, the uncertainty related to the rent cap has spread to the purchasing market in the past, which has caused prices to rise only moderately. Due to the changed framework conditions, the Immowelt model therefore shows only a slight decrease until the end of the year.

In Leipzig, the percentage decrease is slightly greater at 4 percent, but the price level is also lower: according to the study, the price per square meter drops further to EUR 2,610. The large property portfolio will be further enlarged by high interest rates, which will lead to a downward correction in prices. Stores in Nuremberg (minus two percent), Stuttgart and Dortmund (each minus one percent) are also expecting slight drops.

Housing prices continue to rise in Munich and Hamburg

Price adjustments will not be equally strong in all housing segments. However, demand is likely to drop significantly, especially for older, unfinished housing, writes Immowelt. In addition to the increased interest rates, the purchase was made even more difficult by the high renovation costs and the lack of artisans.

However, in cities where real estate prices have recently risen sharply again, a rise in construction interest rates is unlikely to lead to a complete reversal. According to the survey, however, the expected drop in demand will cause the price curves to flatten sharply by the end of the year. For Munich, only a minimal increase is estimated plus one percent – then dThe peak price of € 9,670 per square meter is expected to be reached in December 2022.

There is still a lot to do in Hamburg. After an expected increase of two percent, the price per square meter at the end of the year was € 6,790. However, Immowelt expects the biggest increase in Hanover, where it should be 4,250 euros after an increase of three percent square meter.

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