Held in Munich, Germany, EXPO REAL attracted close to 40,000 people from across the world and more than 1,880 exhibitors. Labelled Europe’s premier real estate event, EXPO REAL was a chance for the Mallcomm team to discuss some of the sector’s biggest trends, opportunities and challenges.
As explained by Stefan Rummel, Managing Director of Messe München responsible for EXPO REAL: “In a time of major upheaval, EXPO REAL reaffirms how valuable it is as a platform for exchange and information for the real estate industry.”
Shifting sands
Representatives from a broad range of asset classes were in attendance, including residential, offices, hotels, logistics and retail. And unsurprisingly, conversations were shaped around rising prices and inflation, interest rate policy, ESG requirements, creating affordable housing, and the overall economic situation across Europe.
The continued uncertainty, fuelled by economic challenges and the war in Ukraine, has led to a pause in investment activity. Many companies have adopted a wait and see strategy that is likely to last for at least another six months. This is particularly prevalent across the offices sector, which many developers and investors are approaching with caution.
The ever-growing need for new homes is however, keeping the residential market strong, especially across build-to-rent (BTR) where demand for rented properties continues to massively outstrip supply.
Digital transformation
Although there are inevitable challenges ahead for the real estate industry, there are also opportunities – and one of the biggest drivers is innovation. This was a common theme in the International Investors Lounge where our MD, David Fuller-Watts was a speaker on proptech, data and innovation.
Technology has a crucial role to play in real estate, including retail destinations, offices, residential, and mixed-use schemes. Tailored in the right way, it can streamline communication, reduce costs, boost property managers’ productivity, and improve tenant retention.
As far as ESG is concerned, technology is providing property developers, owners and investors with new tools to help them addresses both environmental and social principles.
Bespoke, digital platforms like Mallcomm for example, enable landlords and tenants to understand how a building is being used and the impact on energy use. Landlords can track environmental performance in real time and gather data from tenants to establish how carbon emissions can be reduced.
A growing number of property owners and landlords are also turning to proptech to help create a sense of community within their schemes, including promoting initiatives such as health and wellbeing activities, community events and charity campaigns via a single digital platform.
Preparing for the future
From our conversations with some of the biggest players in the German real estate market, we are positive about the next 12 months. EXPO REAL provided valuable guidance to help steer the sector through the uncertainty that lies ahead.
Although for many developers and investors, the need to wait and see remains strong, the industry will not grind to a halt. There remains a desire to keep evolving and innovating to keep one step ahead of challenges and meet the changing needs of building owners, occupiers and end users. This will lead to greater digital transformation, more effective property management and better connected real estate communities.