How local real estate markets create growth opportunities for banks: 4 examples
Best Practices & Trends
Published by
Vinzenz Ager
-
May 30, 2023
How local real estate markets create growth opportunities for banks: 4 examples
Best Practices & Trends
Published by
Vinzenz Ager
-
May 30, 2023
How local real estate markets create growth opportunities for banks: 4 examples
Best Practices & Trends
Published by
Vinzenz Ager
-
May 30, 2023
Customer centricity, personalised experiences and meaningful relationships are key factors in the success of banks and financial service providers. It is also evident that local real estate is the perfect anchor point for banks and financial service providers to get closer to their customers, due to it being a particularly emotional asset class. Besides these few ‘global’ arguments, it is important to examine the market situation in a few countries in order to understand how real estate data can benefit banks, and financial service providers on a local level. In our article, we focus on the market situation in the UK, Germany, Switzerland, and France.
Customer centricity, personalised experiences and meaningful relationships are key factors in the success of banks and financial service providers. It is also evident that local real estate is the perfect anchor point for banks and financial service providers to get closer to their customers, due to it being a particularly emotional asset class. Besides these few ‘global’ arguments, it is important to examine the market situation in a few countries in order to understand how real estate data can benefit banks, and financial service providers on a local level. In our article, we focus on the market situation in the UK, Germany, Switzerland, and France.
Customer centricity, personalised experiences and meaningful relationships are key factors in the success of banks and financial service providers. It is also evident that local real estate is the perfect anchor point for banks and financial service providers to get closer to their customers, due to it being a particularly emotional asset class. Besides these few ‘global’ arguments, it is important to examine the market situation in a few countries in order to understand how real estate data can benefit banks, and financial service providers on a local level. In our article, we focus on the market situation in the UK, Germany, Switzerland, and France.
Local real estate in the United Kingdom: Managing property as an asset
With rising interest rates, growing prices per square feet, complex ESG matters coming to the fore and evolving demographics–– being able to manage residential properties as assets is important for the UK consumer.
This is particularly the case when considering the following market trends:
The dynamic real estate market (buy-to-let, asset value management, ownership structures and shared appreciation with the government for first-time buyers) –– this should be considered alongside changing demographics. “It creates challenges for first-time buyers to access the housing market due to high home prices and raises the question of how they can connect their savings to a housing project”, explains PriceHubble advisor Tony Prestedge.
The high proportion of buy-to-let landlords for whom it is crucial to have a precise and holistic overview of their properties as assets. As they invest in residential realty, they need to ensure ESG compliance and seek to maximise home value and yield.
The demand for home buying outstrips the number of homes for sale across the country. “In such a situation, the individual value of your home becomes much more material in the context of your overall wealth”, says Tony Prestedge.
Yet, banking institutions in the UK and the EU have traditionally separated properties from other investments explains Tony Prestedge, he also goes on to say: “Today, if I open my banking app, my dashboards show me how much I owe but not how much my property is worth, nor its ESG rating, nor an overview of the latest developments in my area.”
Local real estate in the United Kingdom: Managing property as an asset
With rising interest rates, growing prices per square feet, complex ESG matters coming to the fore and evolving demographics–– being able to manage residential properties as assets is important for the UK consumer.
This is particularly the case when considering the following market trends:
The dynamic real estate market (buy-to-let, asset value management, ownership structures and shared appreciation with the government for first-time buyers) –– this should be considered alongside changing demographics. “It creates challenges for first-time buyers to access the housing market due to high home prices and raises the question of how they can connect their savings to a housing project”, explains PriceHubble advisor Tony Prestedge.
The high proportion of buy-to-let landlords for whom it is crucial to have a precise and holistic overview of their properties as assets. As they invest in residential realty, they need to ensure ESG compliance and seek to maximise home value and yield.
The demand for home buying outstrips the number of homes for sale across the country. “In such a situation, the individual value of your home becomes much more material in the context of your overall wealth”, says Tony Prestedge.
Yet, banking institutions in the UK and the EU have traditionally separated properties from other investments explains Tony Prestedge, he also goes on to say: “Today, if I open my banking app, my dashboards show me how much I owe but not how much my property is worth, nor its ESG rating, nor an overview of the latest developments in my area.”
Local real estate in the United Kingdom: Managing property as an asset
With rising interest rates, growing prices per square feet, complex ESG matters coming to the fore and evolving demographics–– being able to manage residential properties as assets is important for the UK consumer.
This is particularly the case when considering the following market trends:
The dynamic real estate market (buy-to-let, asset value management, ownership structures and shared appreciation with the government for first-time buyers) –– this should be considered alongside changing demographics. “It creates challenges for first-time buyers to access the housing market due to high home prices and raises the question of how they can connect their savings to a housing project”, explains PriceHubble advisor Tony Prestedge.
The high proportion of buy-to-let landlords for whom it is crucial to have a precise and holistic overview of their properties as assets. As they invest in residential realty, they need to ensure ESG compliance and seek to maximise home value and yield.
The demand for home buying outstrips the number of homes for sale across the country. “In such a situation, the individual value of your home becomes much more material in the context of your overall wealth”, says Tony Prestedge.
Yet, banking institutions in the UK and the EU have traditionally separated properties from other investments explains Tony Prestedge, he also goes on to say: “Today, if I open my banking app, my dashboards show me how much I owe but not how much my property is worth, nor its ESG rating, nor an overview of the latest developments in my area.”
But the situation is evolving: “Consumers started to really want a 360 view of their property. That’s where digital disruption is happening”, Tony Prestedge says. “In a market where retail banks, brokers, real estate professionals and local real estate agents will have to fight much harder to find and retain customers, it becomes crucial to be able to use data to gamify the relationship, make it more interactive.”
Germany: Breaking the barriers to homeownership and digital transformation
When delving into the real estate market situation in Germany, two key elements stand out:
First, German consumers lack access to homeownership –– approximately only half the population owns the home they live in –– this puts financial institutions under pressure. “Financial service providers have to deal with a low rate of homeownership, and this –– combined with the current economic situation, multiple crises and rising interest rates –– certainly does not help reverse this trend”, says André Boldt, Head of Baloise Germany’s Housing Department. Fewer consumers purchasing loans means that German institutions face increased competition as well as pressure to retain existing customers, expand business with them and to attract new customers.
But the situation is evolving: “Consumers started to really want a 360 view of their property. That’s where digital disruption is happening”, Tony Prestedge says. “In a market where retail banks, brokers, real estate professionals and local real estate agents will have to fight much harder to find and retain customers, it becomes crucial to be able to use data to gamify the relationship, make it more interactive.”
Germany: Breaking the barriers to homeownership and digital transformation
When delving into the real estate market situation in Germany, two key elements stand out:
First, German consumers lack access to homeownership –– approximately only half the population owns the home they live in –– this puts financial institutions under pressure. “Financial service providers have to deal with a low rate of homeownership, and this –– combined with the current economic situation, multiple crises and rising interest rates –– certainly does not help reverse this trend”, says André Boldt, Head of Baloise Germany’s Housing Department. Fewer consumers purchasing loans means that German institutions face increased competition as well as pressure to retain existing customers, expand business with them and to attract new customers.
But the situation is evolving: “Consumers started to really want a 360 view of their property. That’s where digital disruption is happening”, Tony Prestedge says. “In a market where retail banks, brokers, real estate professionals and local real estate agents will have to fight much harder to find and retain customers, it becomes crucial to be able to use data to gamify the relationship, make it more interactive.”
Germany: Breaking the barriers to homeownership and digital transformation
When delving into the real estate market situation in Germany, two key elements stand out:
First, German consumers lack access to homeownership –– approximately only half the population owns the home they live in –– this puts financial institutions under pressure. “Financial service providers have to deal with a low rate of homeownership, and this –– combined with the current economic situation, multiple crises and rising interest rates –– certainly does not help reverse this trend”, says André Boldt, Head of Baloise Germany’s Housing Department. Fewer consumers purchasing loans means that German institutions face increased competition as well as pressure to retain existing customers, expand business with them and to attract new customers.
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