One of the questions facing every real estate developer is the question of marketing the project, choosing the target audience and the marketing message, but what do I do when I am building an apartment building in Bucharest, Athens or Porto and want to sell its apartments to Israeli investors on the one hand and to the local public in each of the countries on the other? How do I sell the same apartment both to the Israeli investor and to the young Portuguese couple?
“Real estate is a local business,” Donald Trump, the incoming president of the US, once said. “You need to understand the local market, the culture, the needs of the people.”
Trump is right. International real estate marketing requires a deep understanding of diverse target audiences, each with its own needs, preferences and culture. In order to succeed and maximize sales potential, real estate developers must adapt their marketing strategy to the different markets, using the appropriate marketing channels and crafting effective marketing messages.
Many Israeli developers I have met over the years learned “the hard way” that Tel Aviv is not Bucharest or Porto, even before we got to marketing. Israelis tend to prefer spacious, modern, fully equipped apartments, with a balcony or garden, while Greeks and Portuguese, mainly in the big cities, for example, tend to prefer apartments with a local character, that blend into the surroundings, and their needs and preferences are for smaller apartments. Someone who built a building with a large mix of 5-room apartments found it difficult to sell it to the local public, while apartments of 1 to 3 rooms will sell quickly and easily to both the Israeli investor audience and the local audience.
But when it comes to marketing the story is no less complicated/complex, and here too Israeli developers tend to choose the easy and familiar solution, which often turns out not to be the right/suitable one.
The first step in marketing international real estate is an in-depth analysis of the target audiences. It is important to understand the motives for buying real estate abroad, the needs and preferences of each audience, and the cultural differences that influence the decision-making process.
A study by Knight Frank found that international investors mainly look for properties with high yield and stability (Knight Frank, 2023). In contrast, a study by CBRE showed that home upgraders look for a quality property in a pleasant and safe environment, with access to transportation, education and community services (CBRE, 2022).
“Success in real estate is not just about buying and selling properties. It's about understanding people.” Robert Kiyosaki, author of the book “Rich Dad Poor Dad.”
Common motives for buying real estate abroad among Israelis are investment, immigration or buying a vacation home. Accordingly, when the developer markets to the Israeli audience the emphasis will be on advantages such as high return, appreciation potential, personal security, proximity to a Jewish community or easy access to Israel. By contrast, the Greek/Portuguese/Italian looks to buy an apartment for housing upgrade, proximity to work or family, proximity to public transportation, or buying a vacation home. So the marketing message for each of these audiences is different: for the local audience the emphasis will be on quality of life, the pleasant environment, proximity to community services, using local terms, referring to cultural characteristics and to the local lifestyle. By contrast, the marketing message to the Israeli audience will emphasize the investment advantages, personal security, proximity to a Jewish community and accessibility to Israel, using direct and clear language.
After identifying the target audiences, it is important to choose the marketing channels suited to each market. Digital channels such as websites, social networks and paid campaigns are important tools, but they must be adapted to the target audience. In every country (and sometimes in every target audience segment) there are the local websites like Yad2 (the Israeli classifieds portal), and alongside them there are specific local ways to market to the local audience, from billboards to sales promotions and offline advertising channels.
A study by Statista found that 93% of potential real estate buyers use the internet to search for properties (Statista, 2024).
Understanding the differences between audiences, marketing channels and marketing messages is critical to success in international real estate marketing. By adapting the marketing strategy to the different markets, real estate developers can maximize sales potential and reach relevant target audiences.
Stories are based on real situations, with identifying details changed. Not legal advice.
Translated from the Hebrew original. עברית