Bonema GmbH, in conversation about the company and the potential of the German Real Estate Market.
“Berlin is about to become the new London”
What does Bonema GmbH do?
Bonema GmbH sees itself as a full-service provider for the real estate industry. With our network of experienced real estate consultants and architects, we open up lucrative investment opportunities for our customers and support you in fully exploiting the potential of the German real estate market.
What does that mean exactly? What is the difference between Bonema and a normal real estate agency?
I would like to give you a specific example. A customer recently approached us. He wanted to open a restaurant with nothing but the idea and the capital.
We did the necessary research, wrote a business plan for him, found the right property, and handled the communication and purchasing process. Then our architects came into play: They planned the space and are now accompanying the renovation.
That means your customers are investors. Can I come to you as a property owner?
Definitely! We see ourselves with our network as intermediaries and ensure classic win-win situations. With our network, we reach top-class investors, whom a large number of brokers will never have contact. We support real estate sellers in the optimal presentation and marketing of their properties. You benefit from our contacts with international investors looking for investment opportunities.
Thanks to our concentrated know-how and a data-driven way of working, we are also able to give a realistic estimate of the market price. Many brokers set unrealistically high prices, so the sale takes a long time. These brokers do not consider the opportunity cost. A property that is not sold also costs money. Others set prices too low and give away hard cash.
That sounds good - but also expensive. How much do you charge property owners for their services?
The new law on brokerage commissions regulates the distribution of brokerage fees, whereby the seller usually pays half of the commission, which is in Berlin 3,57% including tax. At Bonema we donate 2,000 € to a non-profit organization which the buyer & seller can choose. You hire us and we will take care of marketing the property at the best possible price.
interesting strategy! Many real estate agents are still mainly active in traditional sales channels today. It is primarily marketed offline, through offices, advertisements, and direct customer contact. How do your marketing and sales processes look like?
Offline has always been and always will be an important sales channel in the real estate industry. This is because buying a property is always a trust-based business.
But that doesn't mean that the real estate industry can't get anything in the digital world. We also use online channels to market some of the properties. The real estate business will shift more and more into the digital world. We want to be part of the process by bringing new innovations right from the start.
What makes Germany an attractive investment location in the real estate sector?
In Germany and especially Berlin, we currently have a real estate market with one of the world's highest returns. At certain locations, we have an annual increase in the value of up to 15%. Against the background of the impending upheavals at the political level - I am talking about Brexit - Germany and Berlin, in particular, is something of a safe haven for investors. Nobody knows what the UK will look like after leaving the EU. London worked as a financial center because Great Britain was a member of the EU. The great bank flight has already won. This will not leave its mark on the real estate market either. Berlin can become the new London! Nothing like a naive rent cap or a rent brake will stop Berlin from attracting new investors to Berlin. By the way, I am not alone with this opinion. World-famous investors such as Warren Buffet, who has beaten the market for decades, see it the same way.
I'm sure you're right. The German real estate market is currently very interesting, but these conditions - you yourself brought London into play - can change quickly. Isn't it short-sighted to concentrate on the German market?
More speaks for Germany as an investment location than the current market situation. Over time, Germany is an incredibly stable country. I don't think something like a Brexit is possible in Germany. In addition, Germany is a business-friendly country. Foreign investors can operate freely on the German market and find comparatively low corporate taxes.
This is sure to be a smart approach! I think some property owners are interested in learning more about your services. How can interested parties contact you?
I would like to cordially invite interested parties to a consultation! Together we will sound out all options to sell your property profitably. The conversation is of course free of charge. It doesn't cost you anything - except for 1-2 hours of your time. You have the opportunity to talk to an aspiring company from the real estate industry and possibly lay the foundation for a successful cooperation in the future!