Digitalization and transformation are the most pressing issues in the real estate industry

Once again this year, EXPO REAL asked its participants for their assessment of the current situation in the real estate industry in an online survey. A total of 516 exhibitors and visitors to the trade fair took part in the survey conducted in August.

The topic of this year’s EXPO REAL trend indicator, “Future viability of the real estate industry”, touches a nerve with those surveyed, explains Stefan Rummel, CEO of Messe München: “EXPO REAL 2024 is held in a time in which so much has changed for real estate and investments. This year's trade fair is not only addressing this with an extensive conference program, but also with the new exhibition area 'Transform & Beyond by EXPO REAL', which is dedicated to future and transformation topics in the real estate industry for the first time.”

Digitalization and interest rate policy have a noticeable impact on the sector

Of the topics currently influencing the real estate industry, 91 percent of respondents consider digitalization to be very important or important, 88 percent interest rate policy, 87 percent energy solutions for districts and 82 percent the decarbonization of towns and buildings.

Data centers are becoming increasingly important

When asked which types of use will gain in importance in the future, 70 percent put residential properties in first place, followed by care properties (67 percent) and data centers (61 percent). These three types of use were also rated as important in the previous year's survey. However, the fact that the value for data centers in particular has risen from 49 percent in 2023 to 61 percent in the current survey once again underlines the importance of digitalization.

Future relevant investors

For 83 percent of respondents, pension funds and pension schemes will be very relevant or relevant for investments in the future, for 79 percent this applies to family offices. While 79 percent are also in favor of private equity, only 27 percent are in favor of crowdfunding via Internet platforms.

Opportunities for affordable housing

The decisive factors for affordable housing are, according to 95 percent, building in existing structures, which is very important or important; the cost of land, at 88 percent, is closely followed by serial construction, at 87 percent. The latter topic will also be a particular focus at EXPO REAL, as Claudia Boymanns, Exhibition Director of EXPO REAL, emphasizes: “This year we have the special 'Building in Existing Contexts' show, which will also feature a number of practical examples. And we are offering a separate slot on the Career Day to introduce young professionals to the topic.”

Europe and the USA continue to offer opportunities

The greatest growth potential is seen by 54 percent in A locations in B cities, while 46 percent focus on B locations in A cities. Globally 81 percent still consider Europe to be very important or important, followed by the USA (66 percent) and Asia-Pacific (61 percent). Within Europe, Western Europe (82 percent) including the D-A-CH region (78 percent) and Northern Europe (81 percent) are considered to be the most important real estate markets of the future.

Transformation is essential

63 percent of respondents cited the transformation of the real estate portfolio as the most important measure for securing the future of the sector, followed by new business models at 56 percent and increased digitalization at 54 percent.

“All these topics will be discussed at both the trade fair stands and at the numerous events in the forums, on other stages and in the conference rooms," explains Boymanns. Rummel adds: “EXPO REAL is the meeting place for the real estate industry because it promotes exchange, current developments, trends and their effects are analyzed, and joint solutions are discussed. And this is more important than ever this year.”

516 exhibitors and visitors to EXPO REAL took part in the online survey. The survey was conducted in August 2024 by the independent market research institute IfaD on behalf of EXPO REAL.