Three challenges that shape the industry
Depending on the market situation, real estate asset management constantly poses new requirements. Three of these are particularly relevant to the industry.
Volatility in the real estate market
The German real estate market has experienced considerable fluctuations in recent years. Rising interest rates, inflation, political uncertainties and the effects of the energy crisis have noticeably cooled the investment climate. Shortly before the coronavirus crisis, over 74 billion euros flowed into the German real estate market - in 2024, it was around 22 billion euros. Despite a slight recovery compared to the previous year, the level remains well below the long-term average.
For asset managers, this means: develop robust strategies that protect investors’ assets while recognising new potential in the market. Experience is not a luxury - it is the decisive benefit. Those who have experienced several market cycles will recognise early on where opportunities arise.
Data and digitization
Digital technologies are fundamentally transforming the real estate industry - from market analysis to building operations. Sensors measure consumption in real time. AI-powered systems evaluate market dynamics. Digital data management makes portfolios more transparent and efficient.
The key task for asset managers: Recognise which technologies are really worthwhile - and use them early enough to gain competitive advantage. Not every innovation is worth an investment. But using the right ones in a targeted way is crucial.
Sustainability as a cross-cutting topic
Real estate is one of the largest energy consumers in Germany: Buildings account for around 35 percent of final energy consumption and around 30 percent of CO2 emissions. Residential properties alone account for 22 percent of German final energy consumption, while non-residential buildings account for another 12 percent.
Sustainable asset management therefore means more than green certificates. It is about the entire life cycle of a property - environmentally, socially and economically. The ESG criteria provide the framework for this. The work behind it is tangible: energy renovations, sustainable leases, new energy supply concepts.