A memorable name and a recognizable brand increase the chances of success when dealing with real estate investments. Branding can play a decisive role in this.
Product names and brands are omnipresent today. The choice of vehicle, smartphone or wristwatch is an important part of many people's identity. It's about defining yourself and expressing who you are and what you stand for. Whether you choose a Porsche or a Jaguar says a lot about your own priorities and values. The same applies to the choice of manufacturer of the smartphone or wristwatch. It's about identifying with a certain lifestyle, values and aesthetics. Often, the actual benefits and the real advantages over the competition take a back seat, as brands function primarily through emotions.
Many times, the brand’s reputation plays a crucial role in the purchasing decision. Strong brands have a big influence here. The name of a brand or product is essential to be memorable and to hold recognition value.
Is this also applicable to the real estate market?
We believe so! …and here is why: addresses like "Lower Ground Level, Kuala Lumpur City Centre, 50088 Kuala Lumpur, Malaysia" or "32 London Bridge St, London SE1 9SG, United Kingdom", hardly ring a bell. - but i.e. the Petronas Towers and The Shard in London sure do. These names and brands represent world-famous buildings with charisma - they are unmistakable and awake a strong interest.
Establishing a strong brand is essential when the purchasing decision can no longer be made based on product characteristics, such as falling prices, increasing complexity or equality in terms of quality and technology. In order to meet these requirements, successful brands – including real estate brands – awaken and meet needs, create worlds of experience and are a personal statement to the outside world.
Due to the intense competition in the real estate sector, it is key nowadays to develop a targeted marketing strategy and to communicate effectively. Only in this way will your project succeed. Without strong real estate branding, it is becoming increasingly difficult to sell properties effectively. In times of a shortage of skilled workers, however, it is also becoming increasingly important for employers to give their buildings a positive and meaningful identity within the framework of employer branding. This is a crucial field of action in order to prevail in the fight for talents. Strengthening and marketing properties through proper branding facilitates orientation and is increasingly becoming a necessity.
A strong brand can create trust among tenants and buyers. A brand is a symbol of a lasting positive customer experience and has a high recognition value. This promotes brand identification. Real estate is always wedded to its surroundings and is a part of the cityscape in which it should blend in in the best possible way. From an architectural perspective, there is no doubt that this has been undisputed for a long time. But the image of a property can also contribute significantly to its perception as well as acceptance and represent added value. This applies equally to office and retail as well as residential properties.
Thanks to the concepts of well-being and employer brand awareness, office properties have gained a new significance. Real estate is no longer regarded as plain and necessary but is used as a space for identification and can act as an ambassador of the corporate brand. This development has contributed to companies designing their properties in a targeted manner to communicate their brand message.
It is therefore essential that properties are endowed with unique and credible characteristics and are considered in the context of a brand.
Consistently implementing brand attributes is obligatory if asset branding is to be successful. It is important that the characteristics of the brand are continuously embraced. As in the product world, real estate branding requires high quality and creative ideas. If these criteria are met, a branded property can undoubtedly improve the well-being of its occupants, thereby greatly increasing its appeal to potential investors.
The most important basis for raising brand awareness or establishing a brand in the real estate sector is for the name to, ideally, be connected to the property, its function, location or appearance. A name itself can be a promise of use. For example: The Exchange in Kuala Lumpur, which already clearly communicates the purpose in its name. The effort and expense that goes into finding a name and defining a brand, into the development of groundbreaking brand development and consistent communication, is therefore definitely worthwhile. Good branding offers even more advantages, such as:
· Higher achievable market prices for rental and sale
· Higher acceptance by the population (planning phase).
· Higher awareness among the population, especially crucial for retail properties
· Higher identification of using companies and residents with the property.
· Higher acceptance among employees
Factors for building real estate brands:
Purchase decision is no longer made based on pure product characteristics
Increasing price pressure
Harmonization of qualitative and technical standards
Great competition / competitive pressure
Lack of personnel / fight for talents / increasing employee demands (generational change)
Strong real estate brands:
Are a personal statement to the outside world
Are based on brand values
Position themselves clearly
Have attention-grabbing communication
Have a special architecture
Stand in an exceptional location
Have innovative concepts
Have a positive, meaningful identity
thereby awakening an important field of action for employer branding and meeting needs
Create worlds of experience
Brand building and brand identification are fundamental building blocks for Club Estate in the value creation of our assets and an integral part of our asset management strategy. Good and established brands pay off in the rental and subsequent sale of the properties. Club Estate combines extensive expertise in both, the property due diligence and strategic asset management phase. This allows us to focus on the commercial potential of each property and position ourselves clearly during the deal sourcing, and identify special, credible strengths in order to develop an individual and effective branding strategy.
Lars Dott on behalf of the entire Club Estate Team