Golden period for real estate
Low interest rates, good capital supply and growing demand for real estate and infrastructure worldwide have created a long-lasting boom for the industry. Real estate transactions and prices are high. In many places, vacancies are decreasing, and rent is increasing. Real estate fund managers, project developers, portfolio holders and their service providers benefit.
Is that about to change?
Despite the best environment possible today, challenges are on the rise: Rising interest rates in the US could divert capital flows away from Europe; political risks are increasing; and customs duties and sanctions could have an impact on the real economy. The EU, the public and national regulators remain critical of the financial industry and individual capital market segments. In addition, new technologies pose fundamental challenges to real estate and the capital market: The investment requirement for the digital retrofitting of existing properties will be immense, but there is a lack of business models for investors. Blockchain & Co. could, in perspective, eliminate the need for numerous service providers. BIM, scanning, VR and AR have the potential to drastically change construction processes and facility management. Big data and the use of artificial intelligence could transform today’s alpha into tomorrow’s beta, challenging the value creation of many market participants.
KPMG specialists in real estate transformation and performance
Our team of experienced advisors supports you, for example, through process optimisation, automation or outsourcing, in the realisation of organic and inorganic growth strategies, the establishment of new business models and the creation of efficiency and agility.
Digital real estate
Fintech, proptech, legaltech - exciting applications and forward momentum for almost every real estate company can be gained from the crowd of start-ups. KPMG advises on the prerequisites and foundations for a more digital culture and innovation and supports you in the transformation to two-speed IT. Modernising IT landscapes: We combine knowledge of modern IT applications with our experience with the requirements of the real estate industry. This is how we create the best conditions for a successful digital journey.
Robert Betz
Partner Asset Management, Real Estate
KPMG AG Wirtschaftsprüfungsgesellschaft
Gunther Liermann
Partner, Advisory
KPMG AG Wirtschaftsprüfungsgesellschaft
Corporate/public real estate
While real estate used to be regarded exclusively as a shell in which business activities took place, the economic use of the space has since become increasingly important. Today, owner-occupied real estate is also treated as an asset whose market value is to be maximised. For business entities, the public sector and churches, the added value of real estate for the big picture is therefore increasingly in the foreground. Real estate portfolios must adapt flexibly to demand, optimally support core processes and, at the same time, keep costs in check. Our advisors show how cost, space and utilisation transparency can be created and how corporate real estate management can be anchored in corporate management. We develop modern space offers, efficient processes in CREM and facility management as well as advanced IT solutions for you that can deliver this added value.