Do you own a property whose full potential remains untapped? A property is more than just a building; it is an investment whose success depends on precise planning of its economic use. Discover how you can strategically forecast to reduce costs by up to 15% and systematically increase the value of your assets.
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The topic briefly and concisely
The planning of the economic use is the strategic process for maximising the efficiency and return of a property over its entire lifecycle.
A net rental yield of at least 4% is a good benchmark, but true profitability also takes into account costs, risks, and potential for value appreciation.
Energy-efficient renovations can increase property value by over 15% and are crucial for financing due to ESG criteria.
Your property isn't yielding the expected return? Many property owners are familiar with this issue, often making decisions based on incomplete data. The key to success lies in the strategic planning of your property's economic use. It's about thinking beyond mere maintenance and understanding every resource – from space to energy consumption – as an active value driver. This article shows you how to unlock hidden potential, minimize risks, and achieve a sustainable value increase of over 10% through data-driven analysis and clear utilization strategies. We translate complex analyses into immediately applicable steps for your success.
Foundation of Profitability: More than Just Returns
The successful management of a property begins with understanding two key concepts: economic efficiency and profitability. While profitability measures the percentage gain relative to the capital employed, economic efficiency assesses efficiency—the ratio of income to expenditure. A net rental yield of at least 4% is considered a solid base for a profitable investment. However, true economic efficiency requires a deeper analysis that goes beyond mere figures. It considers the entire lifecycle and strategic alignment of the asset. A well-thought-out valuation strategy is therefore the first step. Planning the economic use is thus the foundation that ensures your capital not only generates profits but does so as efficiently as possible.
Analyse and specifically optimise cost structures
Every property incurs ongoing costs that directly reduce the yield. A detailed cost analysis is essential for planning the economic deployment. The ancillary purchase costs alone can amount to up to 14% of the purchase price. Additionally, there are management costs, for which an annual maintenance reserve of about €10 per square metre is considered a guideline. Many owners underestimate these ongoing expenses by up to 20%. By using digital tools and benchmarking, operational costs can be systematically recorded and reduced. An efficient cost structure through the consolidation of measures and negotiation of service provider contracts can reduce annual expenses by 5-10%. This analysis forms the basis for developing a tailored usage strategy.
Define the right usage strategy as a value driver
The decision between holding, selling, or repurposing determines the long-term success of your property. Given an office space vacancy rate of around 4.8% in 2023, repurposing is becoming more significant. Converting commercial space into residential not only creates new living spaces but can also save up to two-thirds of CO2 emissions compared to new construction. A clear investment strategy is crucial. Here are key options:
Retention and Optimisation: Focused on rent increases and cost reductions to maximise cash flow.
Development and Sale: Value enhancement through renovation or modernisation followed by sale.
Repurposing (Conversion): Transformation of, for instance, office spaces into residential areas to meet new market demands.
Land Plot Division: Division of larger plots to create multiple units that can be sold separately.
The choice of strategy must be based on a robust market analysis and an accurate valuation. This is the only way to realise the full potential of a property, which directly leads us to targeted value enhancement.
Systematically unlocking value potentials: From building land to energy efficiency
Active value enhancement is a key aspect in planning the economic utilisation. A crucial lever is land development, where the creation of building rights can significantly multiply the value of a plot. Historical examples show value increases of over 2,000% in 20 years solely through planning upgrades. Another increasingly important factor is energy efficiency. Buildings are responsible for around 30% of CO2 emissions in Germany. Energy renovation not only enhances sustainability but also increases value: A property with energy efficiency class A is, on average, €650 per square metre more expensive than one with class D. Such specialised reports uncover potentials that are often overlooked. However, these measures require careful risk assessment.
Risk Management: Data-driven protection of your investment
Every property investment carries risks such as rental default, unexpected repairs, or market fluctuations. Proactive risk management is therefore not a cost, but a value safeguard. The strategic planning of economic deployment is based on data, not gut feeling. ESG compliance is now a crucial factor, as projects without a sustainability strategy are more difficult to finance and market. A data-driven analysis helps identify risks early and counteract them. The following steps are key:
Scenario Analysis: Calculation of the impact of vacancy or interest rate changes on cash flow.
Technical Due Diligence: Systematic assessment of the condition of buildings and technical systems to avoid cost risks.
Location and Market Analysis: Continuous monitoring of market trends to ensure long-term rental viability.
Contract Management: Reviewing and optimizing landlord and service provider contracts to minimize legal risks.
Comprehensive risk management protects your assets. For an initial assessment of your specific risks, our ImmoGPT chat can be a valuable resource.
Conclusion: Strategic planning as the key to success
The economic use of real estate is not a matter of chance, but the result of disciplined and forward-looking planning. From precise cost analysis, selecting the right usage strategy, to active value enhancement and solid risk management – each step builds upon the previous one. The biggest mistake is to manage a property passively instead of shaping it actively. A data-driven approach, as offered by Auctoa, turns complex challenges into clear action recommendations, giving you a decisive advantage. Start unleashing the full potential of your property today.
planung-wirtschaftlicher-einsatz
Additional useful links
Wikipedia offers a comprehensive article on property valuation, explaining the basics and methods.
The ZIA (Zentraler Immobilien Ausschuss) provides its spring report on the current situation and prospects of the property market.
The DIW Berlin (Deutsches Institut für Wirtschaftsforschung) offers detailed analyses and publications on current developments in the property market.
The Ifo Institute highlights various topics and research findings related to the property market and its economic impacts.
FAQ
How do I start planning the economic use of my property?
Start with a neutral, data-driven assessment of your property. Evaluate the current income, all incurred costs, and the technical condition. An Auctoa assessment provides you with a solid foundation for all further strategic decisions.
What role does ESG play in real estate strategy?
ESG criteria (environmental, social, governance) have become a central factor. Banks and investors are increasingly assessing properties based on their sustainability, which has a direct impact on financing conditions and market value.
Is it worth repurposing a commercial property?
Repurposing spaces, such as converting an office into apartments, can be highly rewarding in addressing vacancy issues and meeting the high demand for housing. However, it requires planning permission and a careful cost-effectiveness evaluation.
How much should the maintenance reserve be?
A common benchmark for the annual maintenance reserve is around €10 per square metre of living space. For older or technically complex buildings, a higher rate of 1-2% of the building's value may be appropriate.
What is the difference between economic efficiency and profitability?
Profitability measures the profit in relation to the capital used (e.g., rental yield in %). Efficiency is a broader measure of efficiency that relates the total effort (costs, resources) to the yield. High profitability is not always efficient if it is achieved with disproportionately high effort or risk.
Can I calculate the profitability myself?
A simple calculation of income minus expenses is possible. However, for well-founded strategic planning, detailed market knowledge and complex analyses (e.g. life cycle costs) are required. Tools such as the Auctoa ImmoGPT can help you make an initial assessment.
