The Real Estate and Construction sector is confronted with important trends and faces major challenges. The recent health crisis has only accelerated ongoing trends such as digitalization of business processes, the use of innovative technologies and Internet of Things making buildings “smarter” but also bringing challenges with respect to cybersecurity, changing customer behavior and expectations requiring real estate owners and developers to rethink their real estate strategy.
The health crisis has also shifted the focus of employees on work environment and flexible working. Corporate real estate owners need to reevaluate the way they organize their workplace to create an attractive work environment for their employees.
And of course, sustainability is high on the agenda. Regulatory changes and competitive considerations call for a strategy around sustainability and circularity of real estate portfolios.
At KPMG, we have acquired experience, knowledge and insights across the Real Estate & Construction sector through delivering tax, legal, accounting, audit and advisory services. KPMG is involved in every stage of the investment property and investment lifecycle and offers experience in working with all levels of stakeholders throughout the real estate industry. Whether your focus is local, regional or global, we can provide you with the right mix of experience to support and enhance your needs and ambitions.
Infrastructure
Today the world invests around $3 trillion in infrastructure each year, but as we strive to deliver the United Nations’ Sustainable Development Goals in developing markets, and upgrade the infrastructure of developed markets, that level of spend is expected to double or treble over the next 10 years.
KPMG’s Global Infrastructure network helps public and private sector organizations involved in infrastructure to deliver the outcomes you are seeking, whether for society or for your business, or both, as efficiently as effectively as possible. We thrive on helping solve the world’s biggest challenges in providing insightful and practical advice to public and private sector infrastructure owners, contractors, operators and investors involved in projects and programs.
Contact us to explore how we can work together to help connect the world, build prosperity, reduce poverty, and create sustainable quality of life.
Challenges & trends
M&A landscape
The M&A landscape has changed with issues such as diversification and globalization, pressure on profitability and distressed sales having an impact on the Real Estate and Construction sector. COVID-19 also has a significant impact on transactions and pricing.
Regulatory forces stress the industry
The implementation of new regulations, intrusive supervisory scrutiny on, for example, data privacy, and increased urban planning regulations and policies are changing the regulatory landscape for the Real Estate and Construction sector.
Data driven operational efficiency
With digitalization at the heart of this period of rapid change, the sector must consider key areas such as data value extraction and data management, data security and cyber threats, increased traction of quantitative investment strategies and digital labour.
Changing customer preferences due to health and environmental crises
COVID-19, climate change and increased social values influence customer behavior and expectations, impacting their real estate needs. This will place the focus more on new customer engagement and service models and technology-enabled buildings.
Tax and geo-politics
The tax landscape is in continuous evolution with the fight against tax evasion leading to the introduction of tax transparency and fairness rules such as DAC6. Furthermore, geopolitical situations such as Brexit will have a real impact on the Real Estate market.
Sustainability goes mainstream
Shifting demands of customers and stakeholders has forced the Real Estate and Construction sector to consider issues such as social values and responsible investing. Re-examining business models to include circular economy practices should also be considered.
Key Services involved in the Real Estate, Infrastructure & Construction sector
- Legal advice and assistance with permit applications
- Administrative and judicial litigation
- Facilitating negotiations with authorities
- Risk consulting
- COVID-19 impact assessments
- Technology advisory: Operational efficiency through automation, AI and machine learning
- Smart cities, Public Procurement & Public-Private Partnerships
- Assessment of DAC6 rules on Real Estate deals
- Impact assessments and tax (re)structuring
- Tax & accounting advice and compliance
- Real Estate finance
- Leasing, property & asset management contract negotiation
- Funding & Finance
- Financial, tax, legal and operational due diligence
- Negotiation and structuring of deals
- Merger & acquisitions
- Governance & planning
- Project Management
Data driven operational efficiency
- Asset management: data integration, analytics and visualization
- Decision-making modelling and portfolio planning
- Operational efficiency
- IT strategy & implementation
We advise Real Estate, Infrastructure and Construction clients on a broad spectrum of issues as well as through the following integrated solutions
Digitalization and market fluctuations present a lot of challenges for organizations with business executives wondering whether their current processes are ready for the future. Investing in the right technologies allows these processes to become more efficient, agile and competitive.
We help you to maximize value across the entire value chain to keep up with evolutions in the market. By defining your enterprise strategy, improving processes and implementing core technologies, we help you to operate efficiently while exploring untapped potential.
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Our multidisciplinary team will support you from the strategic conception phase, to deal execution to implementation and post-merger advice. Looking at your ultimate goal and strategy, our team will work with you to determine how a transaction or deal can support your objectives, helping you adapt your strategy and align your purpose and values to complete the transformation process.
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Our solution, driven by a team of multidisciplinary experts, offer a complete approach to help your organization better deal with regulatory changes. With outstanding expertise in compliance, combined with access to technology-driven solutions, we offer a holistic view of the challenges and opportunities on the regulatory horizon.
