For real estate too: brands bring more return

Properties profiled and established as brands achieve better returns, according to the results of a study. Here are 6 tips on how to turn real estate into successful brands.

Everyone is familiar with this success principle: brand equals added value. Brands promise quality, reliability and prestige. For it one spends also gladly more. For providers, this means more margin, more return, more profit, more customer loyalty and more advantages over the competition.

IREBS study proves: Real estate brands generate significantly higher returns

The real estate market hardly seems to be inspired by this successful principle yet. Here, a lot of money and value is given away. Yet a study by the International Real Estate Business School (IREBS) shows that office properties in Germany, for example, which are perceived by the public as a brand, achieve significantly higher returns. Rents increase by an average of 7.5%. And the sales value is on average even 15% higher than that of a conventional property. Instead, the German real estate market is characterized by ultimately always the same building concepts for supposedly always the same customer needs. The result is now mostly predictable: Lots of vacancies, price erosion and disloyal tenants. As soon as there is something new at attractive prices elsewhere, they move on. Tenant loyalty is non-existent. And by what? Predatory competition is fierce, and the properties are largely interchangeable. Today's winners are quickly becoming tomorrow's losers.

Old recipes do not promise great prospects in the long term! In the future, it will be better to sell individual concepts and solutions, not just space and location, location, location. In the future, the real estate market will have to focus much more on an individually oriented working and living environment. Real estate personalities that promise special and relevant benefits will be increasingly in demand. After all, great architecture and a good name alone do not make a brand. What works for consumer and service brands can also increasingly help real estate to succeed. With the study it is actually already proven.

This gives you the chance to become a successful real estate brand:

1. Analyze what the market of the future really needs.
2. To deal primarily with target groups and their expectations/needs, rationally and emotionally, and to differentiate the market and its potentials more strongly.
3. Pick out a potential target group and tailor the building concept precisely to them.
4. Create a unique identity (positioning, promise, name, CI/CD). A special architecture helps enormously.
5. Build up a personality: Develop a profiling & differentiating communication concept for marketing (more than just renderings). Establish visibility and tangibility.
6. Keep it alive as a personality: Communication even after marketing. Continue to create experiences in and around the property, because a lasting presence ensures desirability and thus value.

No, these basic rules are not really new. But it is probably mostly unusual to apply them so extensively and consistently in the real estate market. With professional support, however, entering the new marketing era should be easy.

We create business. Wächter Worldwide Partners is one of the established owner-managed communications agencies in Germany and a committed partner for success factors 4 to 6. The agency group has numerous budgets and references in the field of real estate positioning and communication, including Tishman Speyer/ Frankfurt, Aurelis/ Hirschgarten/ Triebwerk, LBBW/ Quartier Hofstatt, Hypobank/ Fünf Höfe/ Schäfflerhof/ Munich.