In the fast-evolving landscape of real estate, digitalisation and transformation are now among the most critical issues facing the sector, according to new insights gathered from participants at EXPO REAL 2024, according to a survey of 516 exhibitors and visitors to this year's event, conducted in August.
The survey findings highlight the current concerns, trends, and future priorities in real estate, shedding light on how the industry is adapting to a rapidly changing world.
The digital shift: a key priority
Among those surveyed, an overwhelming 91% identified digitalisation as a highly important factor shaping the future of the real estate industry. This focus on tech-driven innovation comes at a time when real estate professionals are grappling with rising interest rates, shifting market demands, and the pressing need for sustainable solutions. In fact, digitalisation is viewed alongside interest rate policies (88%) and energy solutions for districts (87%) as a key influence on the industry’s future.
The growing relevance of digitalisation is also reflected in the increasing significance of data centres, which are becoming a major asset class. In 2023, 49% of respondents rated data centres as important; this year, that figure has jumped to 61%, underlining the impact of tech-driven change on property investments.
Focus on affordable housing and sustainable solutions
With affordable housing remaining a pressing issue across many global markets, the survey revealed that 95% of respondents see the reuse of existing structures as crucial for addressing this challenge. This approach, coupled with the importance of land costs (88%) and serial construction methods (87%), is shaping new strategies for delivering cost-effective housing solutions. EXPO REAL 2024 will spotlight this topic with a special focus on "Building in Existing Contexts", offering real-world examples and insights for industry professionals.
Investment trends
The survey also highlighted key trends in real estate investment. Pension funds and pension schemes are expected to play a pivotal role in future investments, with 83% of participants indicating their relevance. Meanwhile, family offices (79%) and private equity (also 79%) are seen as important contributors to future investment strategies, whereas crowdfunding platforms lag behind with just 27% seeing them as a viable option.
Global and European opportunities remain strong
Despite challenges, opportunities for growth are still prevalent, particularly in specific geographical areas. According to the survey, 81% of respondents view Europe as an important real estate market, with Northern Europe and the D-A-CH region (Germany, Austria, Switzerland) seen as particularly promising. The USA (66%) and Asia-Pacific (61%) were also identified as regions with significant potential.
Transformation at the core of future success
In terms of future viability, 63% of respondents believe that transforming real estate portfolios is essential to securing the future of the sector. This involves not only embracing digital solutions but also exploring new business models, with 56% emphasising the importance of innovation in this area.
Stefan Rummel, CEO of Messe München, notes that this year's EXPO REAL is well-positioned to address these challenges: “EXPO REAL 2024 is taking place at a time when so much has changed for real estate and investments. The trade fair is tackling these shifts with an expanded conference programme and the introduction of the 'Transform & Beyond' exhibition area, dedicated to future trends and transformation.”
EXPO REAL 2024 will take place in Munich between the 7th and 9th October.