In an interview with the expert in the construction and real estate sector, Sebastian Jung. Since January, he has been strengthening the team of division manager Sahar Faraji at the Berlin location as a manager.

In December 2020 the Business Week In its broad, exclusive study, HAGER once again ranked the industry professionals in six categories Executive Search Consultancy awarded. Among other things, also in the real estate sector.

Mr. Jung, first of all, welcome to the HAGER Executive Consulting team. You have been an expert in the construction and real estate industry for many years, what is the special appeal of this industry for you? 

On the one hand, I am fascinated by the diversity and the presence of real estate as everyday objects and, on the other hand, by the individual value that people attach to “concrete”, such as their own home. Real estate is a distinctive everyday companion for each of us.  

The results of work in the construction and real estate industry are omnipresent and visible to everyone. On the other hand, the actors involved are usually not recognizable or unknown. 

I have been active in the real estate industry since 2014 and have gained a very comprehensive insight, which immediately captivated me and showed me the performance and dynamics that emanate from this industry. 

Do you see any major differences between the major German cities? For example, east-west divide? 

I think that once you have strolled through Halle an der Saale and shortly afterwards through Munich Schwabing, the difference between German cities becomes clear. Real estate is a materialization of the self-image and history of a city that has grown. Due to German history, this difference in the various facets of my work can be seen again and again.  

Rising real estate prices, high demand, low interest rates: The conditions on the German real estate market are causing the media and experts to continually speculate about whether a real estate bubble will develop in Germany in 2021. How did you assess that? 

Wherever real estate purchase prices and the rents that can be achieved are clearly derailing, one can probably speak of an overheated market. This is especially true for big cities. In addition, far fewer people are moving to metropolises today than in previous years, which is certainly also related to the level of rents. At the same time there is a migration to the surrounding area and thus a "relief" of the urban real estate demand. The office and retail concepts that have been called into question in recent years – also strongly fueled by Corona – are also under pressure.

A lower interest rate level will probably not be expected in the future, since negative interest rates would mean massive consequences for German savings behavior. So there are certainly signs that suggest a less “golden future” and that are more reminiscent of the economic challenges of the 1970s. However, according to the prevailing expert opinion in Germany, there is no reason to fear a bubble like the one in the USA before the Lehman bankruptcy.

How has the labor market changed in this industry? Are the requirements for suitable candidates still the same as when you first got to know the industry? Or have new ones been added? 

In recent years there has been a shift towards a strong labor market. This was driven on the one hand by the high degree of specialization of the positions within the companies and, to a large extent, by the very good economic development in Germany, which had an extremely positive effect on the construction and real estate industries. 

In addition, we can already see in our day-to-day work that, in addition to specialist skills, personality traits have become increasingly important.  

How does the topic of digital transformation affect the mandates to be filled? 

It depends heavily on the impact a position has on a company's success. The C-Level takes on topics that can best be compared with industrialization in terms of their innovative strength and scope. The entire corporate structure has to be reformed, and this is usually done under great time pressure, which is caused by rapid technological development.

Companies have to reorganize and create new processes, which inevitably leads to positions emerging that were unthinkable yesterday. There must always be moderation in order to create the transformation without fundamentally changing the company DNA.

Looking into the crystal ball, how do you imagine the real estate market and the mandates to be filled in 2030? 

In 2030, the real estate industry found its entry into the digital world very well. The opportunity for new business models (keyword prop-tech) was actively and intensively promoted in order not only to develop intelligent new buildings, but also to update the existing ones. This resulted in economic growth areas and significant contributions to environmental protection. 

The mandates to be filled have experienced a striking process of change. Algorithms will be able to "occupy" a not inconsiderable part of the position to be filled, which is still processed by personnel agencies today, by evaluating large amounts of data. Wherever employees change jobs in short time cycles, it's all about speed and quantity. In my opinion, the exchangeability of employees and employers is desired vice versa.