Barometer of Opinion 2018
For the second time, EXPO REAL carried out an online survey among trade fair participants. 1,380 property professionals took part—and are confident that the sector will continue to do well. Especially attractive segments for investment: housing, logistics, healthcare and care properties.
“As yet, the real estate industry won’t be unsettled by discussions about international tariffs and debt—for 2018 and 2019, EXPO REAL’s participants still remain optimistic," explains Klaus Dittrich, Chairman & CEO of Messe München. “A large proportion of the respondents even reckon on increasing amounts to be invested in Germany, they accordingly see a lot of potential in niche segments like city logistics or healthcare and care properties." As for digital transformation, there’s a spirit of optimism: “The greatest potential is seen in the areas of "Manage & Operate", "Plan & Build" and "Market"."
Still positive conditions
In spite of geopolitical tensions, trade conflicts and international debt, 65.9 % of the respondents still regard conditions as positive. 30 % believe at least that their companies can absorb a slowdown in economic activity. 62 % think that the amount of money invested in real estate in Germany will increase, 31.3 % that it will stay the same.
Leipzig is regarded as the top "B" location in Germany
The federal structure in Germany offers many locations with potential beyond the big metropolises. The top "B" location by far is Leipzig (48.1 %) followed by Nuremberg (33.6 %), Wiesbaden (29.7 %), Münster (28.7 %) and Hanover (26.3 %).
Great interest in niche segments
In the opinion of the respondents, residential properties (88.5 %) will continue to gain in importance. In particular, public housing/subsidized living is the trend here because 42.9 % take the view that this segment will be of increased importance. Logistics is the second area of high potential, the top subcategory here is city logistics properties with an affirmation level of 37 %. Healthcare and care properties are the number three area with high potential in the segments. So apart from classical investment properties such as offices and retail, it is niche segments which meet with the greatest interest among real estate experts.
Top state support measures for affordable living
How should the state promote affordable living? Most of all, the respondents prefer a reduction of real estate transfer tax (47.5 %), attractive provision of state properties (44 %) and adding to existing buildings (43.9 %). Far behind is state regulation of rents—with an affirmation level of 13.2 %. In the midrange are state housing (38.8 %), state promotion of private homes (33.6 %) and a stronger concentration (30.4 %).
Digital innovation offers plenty of potential
40.1 % of the respondents indicate that their companies offer customers and business partners digital products and services. These are currently offered along the entire value chain. Most of all, great potential for the future is seen in the areas of "Manage & Operate", "Plan & Build" and "Market". ""Smart city" is the area with the largest gap between what’s currently offered and additional potential, so that’s where the biggest development leap is to be expected for the future.
Barometer of Opinion 2018
For the online survey, EXPO REAL commissioned the independent opinion research institute IfaD. 1,380 EXPO REAL 2017 from Germany and abroad took part in the survey conducted in July 2018.
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