Bernese companies announce final against real estate giant SMG!

Bernese companies announce final against real estate giant SMG!

Bern's real estate landscape is currently marked by impending conflict as several local companies compete against the dominant Swiss Marketplace Group (SMG). SMG, which dominates the digital housing market in Switzerland via its Immoscout24 and Homegate platforms, is facing growing resistance. The aim of this initiative is to create more fairness in the digital housing market. Loud baernerbaer.ch Seven Bernese real estate companies have chosen newhome.ch as their preferred real estate portal in order to revolutionize the market.

Critics complain that advertising prices on SMG's platforms have risen by around 100% in the last five years. This is leading to a massive increase in real estate marketer costs, which have increased by up to 30% during this time. In addition, SMG has changed its pricing model several times, which has led to a significant lack of transparency. Flat-rate payments, without freedom of choice for specific services, are often viewed as problematic. Marion Rocskai, a prominent voice of Bern real estate marketers, has called for solidarity among over 800 colleagues to counteract these developments.

Price increases and boycott calls

The situation is exacerbated by a boycott call calling for the removal of all Homegate and Immoscout24 advertisements between February 14th and March 14th. The call comes from an anonymous person who identifies himself as “Dr. F. Meier”. Loud nzz.ch Many brokers are reporting price increases of 50 percent or more, while the SMG claims that the adjustments would be in the “mid double-digit percentage range at most.”

Realtors' fears that SMG could claim a large share of the commissions on real estate sales through their price adjustments are growing. SMG also plans to develop a new business that sells leads to brokers or charges a share of their commissions. In this context, the large platforms SMG and especially their formats Inmoscout24 and Homegate continue to expand their market position.

The rise of Newhome

The founding of Newhome in 2019 by brokers and managers was a first attempt to fight against the market power of Homegate and Immoscout24. However, the platform has achieved limited success as its market share is at most 15% in certain regions. In comparison, Newhome's prices are four times lower than the SMG platforms. It remains to be seen whether large players such as Wincasa or Livit will follow the example of the Bernese companies and become more committed to Newhome.

In a further step to strengthen their own position, companies have announced that they will invest in the visibility of Newhome. In the future, exclusive communication will also take place, with advertisements initially only being published on newhome.ch.

The developments surrounding the SMG and the current initiatives of Bern real estate companies could potentially lead to a new market condition that promotes self-determination and competition. The price watchdog has already announced that it will increasingly scrutinize powerful digital platforms. The pressure in the digital housing market remains high, and the outcome of these disputes could have a lasting impact on the entire industry.