Inventory shortages are one of the leading hurdles for eager buyers in today’s real estate market. The increase in new construction and development is estimated to chip away at this housing challenge, with new home sales estimated to rise by nearly 14 percent, sparking an attractive opportunity for real estate professionals to expand their services. But how can you feel confident competing in the new development market?
Create credibility
It’s important to recognize the difference between existing home sales and new development sales. For resale agents looking to expand into this category, the key is leveraging traditional real estate experience and training that expertise toward the specialty of new developments. While there are shared skills that are valuable in both areas, new construction sales require acute data consideration of market conditions, the competitive landscape and buyer demands at a future time when the project nears completion. You must understand and embrace the vision of what’s being built while bringing customers on the sales journey and creating excitement about something they can’t yet experience. They need to remain engaged on that journey with you through project completion and closing.
Credibility doesn’t happen overnight; however, there is timely value in aligning a global brand with a reputable development offering. With 500+ projects in 20 countries, the Engel & Völkers Development Services designation empowers and supports a local shop and advisor during any point of a development project’s life cycle. Navigating the process can quickly become quite complex. By acting as a partner, our team can parachute in to assist however needed at any point, adding validation and support. It’s important to find the right brand partner.
Let the consumer lead
Hold on to the coattails of consumers, and they’ll lead you to business opportunities. An increasingly mobile consumer has ushered in new markets primed for development opportunities. Increasingly, new development activity is popping up in secondary and tertiary markets — meaning that high-caliber design, tech-enabled construction, strong brand names and housing characteristics aligned with today’s consumer demands are not limited to major metro markets anymore. Today’s consumer has different opportunities to support their mobility, leading to the growth and expanded popularity of 18-hour cities and the emergence of new markets. Aside from geographies, attractive trends that drive purchasing decisions, such as sustainability, impact amenities prioritized in project developments. Observing and listening are critical.
Go global
While the local buyer may comprise a significant proportion of a newly developed project’s clientele, why limit yourself by not expanding that buyer pool with credible national and global feeder markets? Understanding global dynamics presents opportunities people may not have considered, such as moving to Dubai, where most of the real estate inventory consists of new developments. In addition to the customer benefit, a global network offers developers creditable access to feeder markets around the world. Recently, an advisor in our Engel & Völkers London shop was speaking with a European family office that was considering an investment in a New York City project. Our Manhattan-based team was able to provide an analysis to confirm assumptions in the investor package, including comps, existing pricing and value of brand development, which provided an additional revenue stream and, more importantly, deepened the value of our brand beyond a typical transaction.
Extending your expertise into the world of new developments can create lucrative opportunities. Don’t discount the expertise you already have, but understand the value of training and working with the right partners.
Engel & Völkers Development Services provides its real estate network with tools and support to win and sell new projects, whether luxury high-rises, resort residences or new home communities. Representing 500+ projects in 22 countries, Engel & Völkers Development Services is also a valuable resource for developers, leveraging the brand’s global presence and collective experience to envision, market and sell. Learn more.