An interview with Sebastian Jung, an expert in the construction and real estate sector. Since January, he has been working as a manager in the team headed by Sahar Faraji at the Berlin office.

In December 2020, WirtschaftsWoche once again recognized HAGER as one of the industry professionals in personnel consulting in six categories in its broad-based, exclusive study. Including 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 sector for you?

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

The results of work in the construction and real estate industry are omnipresent and visible to everyone. However, the actors involved are usually unrecognizable 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 efficiency and dynamism that emanates from this industry.

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

I think anyone who has strolled through Halle an der Saale and shortly afterwards through Munich Schwabing will realize the difference between German cities. Real estate is a materialization of a city’s evolved self-image and history. Due to German history, this difference can also be seen again and again in the various facets of my work.

Rising real estate prices, high demand, low interest rates: the conditions on the German real estate market have the media and experts repeatedly speculating about whether a real estate bubble will develop in Germany in 2021. How do you assess this?

Wherever real estate purchase prices and achievable rents derail significantly, one can speak of an overheated market. This is particularly true of large cities. In addition, far fewer people are moving to metropolitan areas today than in previous years, which is certainly also related to the level of rents. At the same time, there is an exodus to the surrounding areas and thus a “relief” of urban real estate demand. The office and retail concepts that have been called into question in recent years – also heavily fueled by coronavirus – are also under pressure.

Lower interest rates are unlikely to be expected in the future, as negative interest rates would have massive consequences for German savings behavior. So there are certainly signs that point to a less “golden future” and are more reminiscent of the economic challenges of the 1970s. However, according to the prevailing expert opinion, a bubble like the one in the USA before the Lehman bankruptcy is not to be feared in Germany.

How has the job market in this industry changed? Do the requirements for suitable candidates still correspond to those 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 employee market. This has been driven on the one hand by the high degree of specialization of positions within companies and, to a large extent, by the very good economic development in Germany, which has had an extremely positive impact on the construction and real estate industry.

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

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

It depends very much on the influence a position has on the success of a company. The C-Level deals with issues that are probably best compared to industrialization in terms of their innovative power and scope. The entire corporate structure has to be reshaped, usually under great time pressure due to the rapid pace of technological development.

Companies have to reorganize themselves and create new processes, which inevitably leads to the emergence of positions that were unthinkable yesterday. A sense of proportion must always be maintained in order to manage the transformation without fundamentally changing the company’s DNA.

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

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

The mandates to be filled have undergone a striking process of change. Algorithms will be able to “fill” a not inconsiderable proportion of the positions to be filled, which are still handled by recruitment agencies today, by evaluating large amounts of data. Wherever employees change jobs in short time cycles, it is all about speed and quantity. In my opinion, the interchangeability of employees and employers is desirable vice versa.