Expo Real 2023: Between crisis fair and spirit of optimism

The real estate market underwent rapid change last year, with rising interest rates, falling prices, and increased overall market volatility leaving their mark. Against this backdrop, industry gatherings such as Expo Real are naturally becoming increasingly important. Once again this year, the JAAS team was on site when Germany's most important real estate trade fair opened its doors and industry decision-makers gathered to discuss current market developments, challenges, and trends.
For us, the trade fair serves as both a barometer of sentiment and an important platform for professional exchange with our business partners. During the numerous discussions we held during the Expo, the following market theories were repeatedly confirmed:

1. Pricing has not yet been finalized, but quality continues to prevail. Buyer priorities are shifting significantly in favor of energy-efficient properties that meet the latest sustainability standards while creating ideal living and working conditions for tenants and owners alike.

2. Higher interest rates remain the new reality on the market for the time being. Only those who implement projects with stable value will be able to continue to generate satisfactory returns against the backdrop of more difficult financing conditions.
3. True to the motto “Survive till 2025,” it is now becoming clear who managed their business with foresight during the previous boom phase and was thus able to build a solid capital base. This stable foundation is a decisive factor in weathering the current difficult market situation.

4. Every crisis also offers opportunities for growth. The current pricing phase is opening up unique opportunities for project developers to purchase properties and land. In addition to the aforementioned stability (and associated liquidity),this also requires an extensive network within the industry.

As the real estate industry's class reunion, Expo Real was once again an excellent place to cultivate and expand this network this year. In addition to discussions about the continuing challenging market situation and concerns about the future development of the real estate industry, we are also taking away some very optimistic perspectives from Munich: Many market participants see great potential for the industry in areas such as sustainability, digitalization, and changing space requirements, which are far from being exhausted and offer opportunities for a long-term growth phase within the real estate industry.
We are convinced that this spirit of optimism is particularly needed in uncertain times like these, and we are already looking forward to Expo Real 2024.