Innovation strategies in the property sector

The most relevant innovation drivers and transformation hurdles of an industry under pressure.

The most relevant innovation drivers and transformation hurdles in an industry

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What can be done to increase resilience? This question is currently at the top of the agenda for managers in property companies. Innovations are becoming essential for the sector, which has grown significantly in recent years, and not just in view of rising interest rates or higher raw material and energy costs. ESG regulations are also putting increasing pressure on innovative solutions.

How well positioned are companies to respond to the complex situation with innovations and what is particularly important to increase their ability to innovate? Based on a survey and interviews with experts, we have analysed the framework conditions, designs and hurdles of innovation strategies in the "Road to Disruption" study. Our authors provide remarkable insights into an industry in upheaval and highlight complex tasks and further development approaches.

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Innovation strategies in the property sector

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Key findings in a compact overview

More than 90 per cent of the companies surveyed have already identified problem areas in which they could generally apply innovations. The respondents see the greatest potential for innovation over the next five years in the following areas: sustainability, digitalisation, new construction and renovation, data management and process optimisation.
In three out of four companies surveyed, managers support and promote innovation. In 72 per cent of companies, the topic of "innovation" is also anchored in the corporate strategy, with two thirds already working on solutions for new products and business models.
Only around a third of companies are not planning a strategy for the next five years to increase their own innovative strength. Joint ventures will become much more relevant in the next five years. 34 per cent of companies are currently working with start-ups, for example, and 31 per cent are planning to do so in the next five years. Collaborations with external research and development organisations will decrease over the same period.
A conservative corporate culture inhibits innovation in more than half of companies. A lack of human resources is cited by 50 per cent as a challenge to the successful implementation of innovation processes. Complex internal decision-making processes prevent innovation activities at more than a third of companies. At 27 per cent, innovations are hindered by a lack of experience and innovation knowledge.

"The new products and services that have emerged in the property industry in recent years have not yet had the desired impact overall," emphasises Kristin Reichert-Nies, Senior Manager "Only a few have been able to adequately meet the complex challenges of the industry, although a wide range of topics have long been waiting to be addressed with innovations." However, it is also clear that "awareness of the urgent need for innovation is increasing and companies are expanding their innovation capabilities. A surprisingly high proportion of more than two thirds of companies state that they are currently actively involved in innovation processes." That is a reason for confidence.