How to Boost Your Real Estate Sales with Real Estate Marketing

Definition and basics

Explanation of the term real estate marketing

Real estate marketing refers to the market-oriented realization of corporate goals and the alignment of the product ‘real estate’ to the market. It encompasses all activities that aim to find potential buyers or tenants for real estate and to increase sales or rentals. At its core, it is about understanding the wishes and needs of the target group and designing and marketing the real estate offerings accordingly.

Marketing mix for real estate (product, price, communication, and distribution policy)

The marketing mix is a central concept in real estate marketing and comprises the following four main areas:

1. Product policy: This involves the design and adaptation of the property itself, such as size, equipment, location, and architecture, to meet the needs of the target group.
2. Price policy: The conscious determination of the purchase price or rent to create a desire for the product among customers and to ensure competitiveness and profitability at the same time.
3. Communication policy: This includes all measures to communicate with potential customers, such as advertising, social media, brochures, events, and cooperation with other brokers, to strengthen the image and increase the chances of sales.
4. Distribution policy: The choice of the right distribution channels to effectively market the property and bring it to the target group, for example, via online platforms, open houses, or direct customer contact.

By combining these instruments in a targeted manner, real estate companies can achieve their marketing goals and differentiate themselves from the competition. A holistic approach that takes into account all aspects of the marketing mix is the key to successful real estate marketing.

History and development

Origins of real estate marketing

Until the 1990s, advertising communication in the real estate market was largely done by brokers. They mainly relied on a pure information strategy, which was reflected in designed sales ads and information brochures. The marketing of real estate was mainly done via regional newspaper ads, flyers, or advertising brochures.

Increasing relevance in recent decades

With growing competitive pressure and the need to market real estate faster and more targeted, real estate marketing has developed into an independent discipline with a broad range of instruments in the following years. The advertising industry took the real estate market more into account and aligned its offers accordingly.

The gross advertising investments of the construction and real estate companies increased strongly in 2007. According to Nielsen Media Research GmbH, they climbed to 6.9 million euros in the above-the-line media, an increase of 33.9 percent over the previous year. The internet advertising for this area even recorded an increase of 123.6 percent.

In the competitive real estate market, digital marketing has become essential for all actors such as brokers, companies, agencies, and developers to be successful in the long term. Through targeted real estate marketing, they can differentiate themselves from the competition, generate new contacts, and create long-term customer loyalty. Even real estate portals are increasingly emerging as competitors, especially in the sale of real estate.

Digital marketing has revolutionized real estate marketing. Large real estate portals have taken over the market leadership and have become the central point of contact for potential buyers or tenants. Real estate marketing today means above all: to do online marketing and to get in contact with interested parties in order to prepare them as well as possible for the real estate business.

Goals and target groups

Main goals of real estate marketing

The primary goal of real estate marketing is to find and address current and future sales markets for real estate projects – from individual buildings to entire development areas. Real estate is built up as a brand, as good real estate marketing is always also sales support. The main goals can be summarized as follows:

1. Positive image and good name: Through the accompaniment of the development of the property (construction, renovation, conversion, etc.), a positive image and a good name should be given to the object among the target groups.
2. Sales support and value enhancement: The marketing should support the sales and contribute to the long-term value preservation or value enhancement of the property.
3. Emotional appeal: Nondescript buildings made of stone, glass, concrete, and steel are given values through targeted marketing measures, such as architecture visualizations, that appeal to potential customers on an emotional level.

Identification and addressing of the relevant target groups

The definition and addressing of the right target groups is crucial for the success of real estate marketing activities. The target group is the group of people and organizations to whom the marketing measures are directed in order to achieve the set communication and sales goals.

The target group structure in real estate marketing is particularly complex. Depending on the market position and real estate product, there is a large number of current and potential target groups:

• Institutional and private capital investors/investors
• Owner-occupiers (private individuals, companies, public builders)
• Tenants/users from different areas
• Project developers, builders
• Capital providers (banks, insurance companies, etc.)
• Sales intermediaries (brokers, investment advisors, etc.)
• Property managers, managers, facility managers
• Consultants (real estate, investment, tax advisors, etc.)
• Architects, construction companies, craftsmen
• Housing companies and cooperatives
• Authorities, associations, federations
• Public, press

These can be divided into final target groups (potential buyers/tenants) and sub-final target groups (multipliers, opinion leaders). While addressing the final target group is the primary goal, the involvement of the sub-final target group should support this.

Careful identification and target group-specific addressing are essential for effective communication and avoidance of scatter loss. Through detailed target group analyses and persona profiles, the core messages and appropriate communication channels can be determined.”

Areas and applications

Existing properties vs. new construction projects

In real estate marketing, there are two main areas: existing properties and new construction projects. Both require different marketing approaches to address their respective strengths and target groups.

Existing properties:

1. Advantages: Existing properties often offer larger plots of land and a grown charm. In desirable locations, their values can rise strongly, which is a worthwhile investment.
2. Challenges: Older properties usually require higher maintenance costs and there is a risk of hidden defects. A careful inspection before the purchase is essential.
3. Marketing focus: The marketing focuses on promoting the location, character, and potential of the property. Transparency about the condition and possible renovation costs is important.

New construction projects:

1. Advantages: New buildings offer high energy efficiency, modern equipment, and low maintenance costs in the first years. With condominiums, the equipment can often be co-designed.
2. Challenges: New buildings are usually more expensive than comparable existing properties. In urban areas, plots of land for single-family homes are scarce and expensive.
3. Marketing focus: The marketing emphasizes the advantages of energy efficiency, modern technology, and individual design options. Visualizations and model apartments play a big role.

Both areas require a targeted approach to the respective target groups and the emphasis of the specific strengths of the property.

City marketing and location marketing

City marketing and location marketing are important areas of real estate marketing that focus on the marketing of cities and regions as attractive locations.

City marketing:

1. Target groups: Retail, tourism, residents, and businesses.
2. Measures: Advertising campaigns, events, infrastructure improvements, storefront competitions, special offers for traffic and parking.
3. Goals: Strengthening the city center as a shopping and leisure destination, promoting local retail, and increasing the quality of life.

Location marketing:

1. Target groups: Companies, investors, and qualified workers.
2. Measures: Image campaigns, brochures, trade fairs, investor events, and economic development.
3. Goals: Settlement of new companies, securing existing locations, and improving the infrastructure and location conditions.

Both city marketing and location marketing require close cooperation between public administrations, business associations, and companies. Through coordinated measures, cities and regions are to be positioned as attractive places to live, work, and invest.

Commercial real estate and office space

Real estate marketing for commercial properties and office space has become increasingly digitalized in recent years. In addition to the presence on real estate portals, providers are increasingly relying on their own digital marketing channels.

1. Real estate portals: Insertion of offers on leading portals for lead generation, but increasing costs and dependency.
2. Own platforms: Building company-owned real estate platforms for independence from portals and holistic integration of digital channels.
3. Content marketing: Positioning of content and landing pages in search engines to lead interested parties directly to the website.
4. Identification of leads: Use of software to identify potential business customers when visiting the website.
5. Digital marketing strategies: Development of holistic, digital marketing concepts for efficient lead generation and sales support.

Digital marketing has become an essential pillar in the marketing mix for commercial real estate. In addition to the presence on portals, providers are increasingly focusing on building their own digital channels and strategies for target group-specific addressing.

Marketing mix and instruments

Architectural visualizations and rendering

The introduction of 3D visualization technologies has fundamentally changed real estate marketing. This technique enables companies to present their real estate projects and services in a completely new and interactive way. Through the realistic representation, potential customers and investors can be better addressed and convinced.

The visualization serves as a bridge between abstract ideas and their real implementation. It enables effective communication and early problem detection. By presenting your projects in the highest quality, you can gain the trust of your target groups and secure it in the long term.

Some advantages of 3D visualizations:

1. Photorealistic representation: The photorealistic representation can arouse the interest of potential customers and accelerate the decision-making process.
2. Innovative communication: The integration of 3D visualizations into your marketing strategies enables you to convey complex ideas simply and effectively.
3. Competitive advantages: This not only strengthens your competitiveness but also significantly improves the perception of your brand.
4. Appealing presentation: 3D visualizations offer you the opportunity to present your products and projects in an innovative and appealing way.
5. Improved customer interaction: By using this technology, you can tap into a new dimension of customer interaction and convey your messages in a visually impressive way.

Sales promotion

Sales promotion measures are an essential part of real estate marketing. They are used to support the sale of real estate through targeted incentives and actions. Some common instruments are:

1. Special offers and discounts: Time-limited discounts or special conditions can motivate interested parties to buy.
2. Financing offers: Attractive financing options, such as low interest rates or special conditions for investors.
3. Incentives and bonuses: Additional incentives such as free equipment options, renovation vouchers, or trips.
4. Model apartments and viewing offers: The possibility to visit model apartments or to make virtual tours facilitates the purchase decision.
5. Cooperations and cross-marketing: Partnerships with other companies for the joint marketing of offers.

These measures aim to accelerate the purchasing process, to bind interested parties, and ultimately to increase the sales figures.

Print and online advertising

A balanced combination of print and online advertising is of great importance in the real estate industry. Both channels have their strengths and should be used in a targeted way to effectively reach your target groups.

Print advertising:

• High-quality print media such as brochures, flyers, and catalogs are ideal for marketing luxury real estate and prestige projects.
• By targeted distribution and scattering in relevant regions, you can directly address your target group.
• Print advertising conveys exclusivity and high quality, which is important for many real estate customers.

Online advertising:

• Online channels such as real estate portals, social media, and search engine marketing enable a wide reach and targeted addressing.
• You can precisely define your target groups and align your advertising accordingly.
• Online advertising is often cheaper than print advertising and offers detailed tracking options.
• A professional web presence is essential in the real estate industry, as many interested parties search for offers online.

By intelligently combining print and online advertising, you can leverage synergies and effectively transmit your marketing messages to your target groups.

Events and public relations

Events and public relations (PR) are important instruments for presenting your real estate projects and your company in the public and for increasing your brand awareness.

Events:

• Events such as trade fairs, exhibitions, or real estate markets offer an excellent opportunity to get in direct contact with potential customers.
• You can present your projects in a tangible way, answer questions, and generate leads.
• Exclusive events such as customer events or investor evenings strengthen customer loyalty and trust in your brand.

Public Relations:

• Press releases to print and online media can help to spread articles about your real estate and to link your website address.
• Press conferences and interviews enable you to present your projects and your company in detail.
• Professional PR work contributes to strengthening your image in the public and to building trust.

Events and PR activities should be considered as an integral part of your overall marketing. They support other marketing measures, contribute to differentiation, and enable consistent brand communication.”

Development and conception of strategy

Target group analysis and brand building

The foundations for successful real estate marketing are laid in the conception phase. Property properties, pricing, and location factors provide the main arguments for the later marketing. Therefore, a thorough target group analysis is essential to align your communication measures precisely with the customer needs.

Using detailed persona profiles, which are created according to behavioral, demographic, socioeconomic, and psychological criteria, you define the core messages and choose the appropriate communication channels. Depending on the persona type, classic or digital channels, or a combination of both, are used. This preliminary work serves to optimally support your project and sales goals, to use budgets efficiently, and to avoid scatter loss.

The target group analysis is not completed after the start of marketing. Rather, the target groups can now be evaluated and, if necessary, concretized based on real data from realized measures. This ensures that your communication is always tailored to the actual interested parties and buyers.

Determination of the communication strategy

To define a purposeful communication strategy, various aspects must be considered:

1. Project phase: In the beginning, it is about making the location factors and product qualities known and optimizing them. Later, sales promotion and customer loyalty come into focus.
2. Type of property: Depending on whether it is existing or new construction projects, the core messages and communication channels vary.
3. Business object: The strategy differs depending on whether you act as a developer, broker, consultant, or property manager.
4. Target group: It is crucial to align your communication with the needs, emotions, and decision-making processes.

Ask yourself questions like: What is my core message? Which approach is most effective for my target group? How important are personal support and customer loyalty? Define your added value and unique selling proposition clearly.

Measure planning and budgeting

Based on the defined strategy, the operational planning of the communication measures and the budgeting take place. Chances and risks must be recorded, evaluated, and mapped in strategy and structure budgets.

Market drivers show the requirements of the markets and how they are changing. All costs must be examined for risks and converted into monetary units. Due to the dynamics of the environment, plan data often quickly lose relevance for control. Therefore, regular forecasts are important to react to plan deviations in time.

The annual budgeting can be enormously resource-intensive. Special software for budgeting and payroll planning can be useful here. Regular actual-to-plan comparisons are essential to make any adjustments to the strategy and budgets. Only in this way can efficient and effective budget planning be ensured in the VUCA world.

Trends and future outlook

Digitalization and social media marketing

Digitalization has changed all areas of daily life in recent years and has not stopped at the real estate industry. Real estate agents and companies have recognized that they need to digitalize their business processes and adapt to the new technological developments to remain competitive and offer their customers a better experience.

Through virtual reality and 3D visualizations, customers can take virtual tours of properties without being on-site. Big data and artificial intelligence help analyze data and give real estate agents and companies valuable insights into the preferences and needs of interested parties. Blockchain technology can simplify and secure contract processing and property transfer.

Online marketing is an exciting field that is becoming increasingly important – almost indispensable – in the real estate industry. Real estate agents and companies are increasingly using online marketing strategies such as:

1. Search engine optimization (SEO)
2. Social media marketing
3. E-mail marketing
4. Content marketing

These strategies enable them to increase their reach, address potential interested parties, and generate leads. In the course of digitalization, customers will increasingly search for properties online and inform themselves about offers. Real estate agents, therefore, need to strengthen their presence in the online area and meet customer needs by offering, for example, online inspections.

Digitalization also makes it possible to automate many processes, such as contract processing or the management of real estate portfolios. Artificial intelligence (AI) can reduce the workload of real estate agents by, for example, performing automated property valuations or analyzing customer data to create customized offers.

Blockchain technology could increase trust between the various actors in the real estate market and make transactions more secure. By using big data, real estate agents can better understand customer needs and create personalized offers. Digital technologies can contribute to strengthening customer loyalty by providing customer apps or platforms where customers can search for properties and receive offers.

Summary

In summary, it can be said that real estate marketing is an indispensable part of the real estate industry to increase sales and gain competitive advantages. It encompasses a broad spectrum of strategies and instruments, from classic advertising to visualizations to digital channels and data-based approaches. The careful analysis of the target groups and the development of personalized concepts are decisive for success. At the same time, aspects such as sustainability and customer experience are gaining in importance.

In the future, trends such as digitalization, social media marketing, and the use of data analyses will continue to intensify. It will be crucial to recognize customer needs early on, develop innovative solutions, and consistently align the marketing with the individual target groups. Only those who actively shape the change can assert themselves in the market in the long term and benefit from the opportunities of real estate marketing.”

Successful Real Estate Marketing for Higher Sales

Targeted marketing increases visibility and boosts real estate sales. Our performance marketing strategies help you effectively promote properties and attract the right buyers or tenants.