Expo Real

ESG only comes in third in importance for German real estate players who filled in the survey

Research

Hot topics to expect at Expo Real 2022

An online survey conducted prior to the fair sheds light on current trends in the real estate industry: price increases and inflation, ESG, affordable housing and cooperation with the public sector.

Stefan Rummel, CEO of Messe München, organiser of the show, said: “Considering the current general conditions, the real estate industry is entering the fall with subdued expectations for the real estate market. Just under half of the respondents to the EXPO REAL Trend Index believe that investments in German real estate will decrease, a quarter expect it to remain at the same level at most. The need to discuss the challenges is correspondingly high. The strong participation of about 1,900 exhibitors at EXPO REAL—nearly 60% more than last year and coming close to pre-pandemic levels—also proves this.”

Around 500 show participants took part in the online survey, both decision-makers from exhibiting companies and visitors. The survey was conducted in July by the independent market research institute IfaD on behalf of EXPO REAL.

More information on EXPO REAL 2022 is available at www.exporeal.net The next edition will take place in Munich from 4 to 6 October.

EXPO REAL has a large focus on digitalisation and associated innovation, the trade fair covers both the different real estate segments—office, retail, hotel, logistics and residential—and the entire life cycle of buildings, ranging from project development and investment to finance, marketing and operation. EXPO REAL 2021 attracted 1,198 exhibitors from 29 countries and 19,200 visitors from 52 countries.

As a result of the upheavals caused by the war in the Ukraine, the real estate industry is primarily concerned with inflation and interest rate policy. When it comes to the most important influencing factors and challenges, climate protection was in third place. Expectations for market development are accordingly subdued: almost half of those surveyed believed that the amounts of money invested in German real estate will decrease, whereas 26% expect them to remain the same or increase. Most respondents gave a positive assessment of the interest rate hikes by the European Central Bank: 61% think that the central bank is ending the real estate boom, and 67% assume that real estate financing will now become more realistic.

Expo Real pres

Another major challenge for large parts of the real estate industry is the ESG (environmental, social, governance) requirements, not only for fund products. Nearly a quarter of respondents are still unclear about this. However, four in 10 consider ESG criteria to be the approach to take.

From affordable housing to climate-resilient cities: the survey reveals that sustainable urban development can only be accomplished if politics and business join forces.

In terms of climate protection in cities, the respondents from the real estate industry are primarily focusing on better public infrastructure and generally ecological urban development.

Two-thirds call for more commitment on the part of the public sector to develop infrastructure in the cities. Half are convinced that private-public partnership models will regain importance. Half would like to see closer cooperation in housing construction, while 72% want to work on simplifying regulations in this field. It is widely recognised that the state cannot address the lack of affordable housing on its own.

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