Twice a year a real estate fair is held in the Palace of the Parliament in Bucharest. Shai and I had visited it together several times in the past, and for Shai it was only natural, when he began planning the new building he would put up on the plot he had bought a few months earlier, to buy exhibition space at the fair to present his project.
I was very impressed when he came to me with the sketch of the booth prepared for him by a company that builds booths for displays and exhibitions, but I tried to temper the enthusiasm and reminded him that in recent years the fair's reputation has declined, that the big companies no longer exhibit there as they used to, and that the number of exhibitors is generally dwindling. I reminded him that last year we mostly saw displays of projects in the south of the city.
“We always said we'd exhibit at the fair, and here's our chance,” he said.
“I understand,” I replied, “just take into account that Romanians don't usually buy off-plan. Certainly not from a foreign developer for whom this is his first project.” I was trying to cool the enthusiasm.
He hired a company to market the project for him, met with them and briefed the sales staff before the fair, and during the fair sent me photos showing interest and foot traffic at the booth. In the messages he sent, he said there was interest and that some people were leaving their details.
About a month after the fair we sat down for a status meeting to understand where the project stood and what could and should be advanced, but he opened the meeting with a surprising statement: “I can't believe I invested more than 10,000 euros in this fair and nothing came of it.”
“But there were people interested, people left phone numbers,” I said.
“The marketing company had more than two hundred leads from the fair, there were people who were interested and some even said they would go and see the plot and get back to us, but nothing moved forward and not a single registration was made,” he said in frustration.
This statement from Shai did not surprise me. On the contrary, it confirmed what I had tried to explain to him before the fair. Remember I told him that “Romanians don't usually buy off-plan”? And certainly not from a foreign developer for whom this is his first project. That isn't just a fact about Romania; it is a critical insight about marketing real estate to a local audience in any destination abroad.
We Israelis are used to a different sales model. We buy “off-plan” before we've seen a single stone, relying on renderings and on the reputation of the developer or the broker, and on the protections the law gives us. But in most international markets, and especially in developing countries, the approach is completely different. The local audience wants to see, to touch, to feel. It wants security, and for it, security comes when it sees the walls going up, the apartments being built, and preferably - when there are already first residents in the project.
The fair was an excellent opportunity to generate “buzz” around the project, but on its own it was not enough to close deals. Two hundred leads is an amazing figure, but they stayed “on paper” because the next, critical step was missing - physical, visual and tangible proof of progress.
So what do you do when you want to sell to the local audience abroad? Here are a few insights I shared with Shai, and they are relevant to every developer:
1. The proof stage - photos, video and site tours: If the project is still under construction, produce high-quality visual content on an ongoing basis. Progress photos of the construction, drone videos, virtual tours of the site. Then take the leads from the fair on physical tours of the plot, even if it is only “at the construction site.” Let them see the work with their own eyes. This builds trust and converts interest into intent.
2. Cultural fit is the key: What works in marketing in Israel will not necessarily work in Bucharest, Budapest or Lisbon. You need to understand the cultural nuances, the purchasing habits, and the kind of security the local audience is looking for. The promise of a 12% yield, for example, may excite Israelis, but Romanians will first look for the land registry entry and the stages of construction.
3. Not just an apartment, an entire system: Remember, you are not selling just a property. You are selling accompanying services, peace of mind, and confidence in the investment. What else is there in the project besides residential units? How close is it to public transport? Does the project have green areas? A park? What is the finish level? All these details must be clear and transparent to the local customer, even before he thinks about price.
Shai's investment in the fair was not in vain. It generated interest and leads, and was the first stage in a process. The lesson is that you need to understand all the stages of the marketing funnel, and adapt them to the cultural expectations of the target audience.
Stories are based on real situations, with identifying details changed. Not legal advice.
Translated from the Hebrew original. עברית