Real Estate

The real estate market, with the segments of brokerage, management, trading and letting, is one of the strongest sectors of the economy in Germany and generated a total revenue of EUR 346 bn in 2021.

  • Last update

    07/02/2023

  • Type

    Executive Summary

  • Contributors

    Felix Engelhardt, CFA

sector.name

Current Developments

Real estate market gains ground

According to a PWC study (2021), the real estate sector is benefiting from steady growth, which makes investors generally hopeful. Nevertheless, the long-term outlook is associated with numerous uncertainties. Here, buzzwords such as digital transformation, customer and product innovations as well as property technology dominate the discourse.

Growth Rates

Trends

Property Technology

“PropTech” is essential to the digital transformation of the real estate sector. It covers the entire real estate life cycle using software and hardware solutions to optimise processes and business models, driving overall efficiency. Innovation and efficiency are thus set to revolutionise the industry.

Transactions

Our Sector Transactions
0
Highlight Transaction
x
Number of M&A transactions - DACH region, 2021 (as of August)
52
Significant Transactions
  • Deutsche Wohnen SE x Vonovia SE

Future Trends

Awareness of sustainable issues is having a strong impact on the real estate sector in Germany, as evidenced by the increase in green buildings. In 2021, 26% of individual transactions were certified in buildings developed and operated according to sustainability standards. Institutions such as DGNB, LEED or BREEAM issue the most important certificates, and investments in green commercial real estate have risen sharply in recent years. The trend towards green real estate and advances in digital transformation and product innovation are expected to continue.

People & Voices

Zumera has in-depth professional and industry knowledge and can draw on a broad network of industry experts who have gained many years of transaction experience.

"Although the real estate industry faces some obstacles, it is open for innovation and adaption regarding sustainability topics. Alongside environmental shifts and the pandemic recovery, we see strong demand for mergers and strategic acquisitions in the real estate industry."

CEO & FounderFelix Engelhardt, CFA

Our View

Overall, the real estate industry is proving to be very promising. New trends such as sustainable construction, real estate technologies and their digitalisation are making their mark on the industry and are the basis for lasting change in the entire sector. The call for more innovation in business models is increasing the pressure for consolidation in the market.

Our View

Sector Update

Zumera professionals regularly release content on current affairs and market trends to stimulate thought and discussion. We share exciting analyses, real-time market insights, and company news with the world.

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