Dynamism needs flexibility, curiosity and courage
No matter whether it’s the rise of China, the fight against terror or the ongoing instability of the European Union – international politics are changing at a rapid pace. But this impetus is not restricted solely to matters within the field of politics. Business and technology, too, are subject to a growing shift in framework conditions. And this also applies to the real estate sector.
The following five megatrends, in particular, are exerting high pressure to change on the real estate industry: globalisation, urbanisation and demographic shifts are primarily influencing user requirements and demand, whilst digitalisation and the requirement for greater sustainability are transforming solution approaches and the offering. These trends act in very different ways, depending on the country, region and type of use – new density patterns emerge, new ways of working, new living cultures. Old professions disappear and new ones take their place. What is certain is that – in much the same way as Charles Darwin himself would have supposed: it will
not be today’s biggest or best market player that will survive but rather the one that is most adaptable.
Some examples? Airbnb and Wework are challenging classical business models in the real estate sector and catapulting our industry into the age of the platform economy. Those who profit the most here are the users and platform owners. This has the potential to cause massive changes in the business models of both brokers and portfolio holders.
The real estate sector seems to be finding it incredibly difficult to acknowledge and exploit the possibilities that the digital transformation offers. Scepticism and protecting-what-we-have are often the cultural guidelines that our conservative industry follows. If we want to survive in the future, what we need most of all is a cultural shift towards greater curiosity and courage. However, a culture of innovation needs much more than just intellectually flexible management. The inner and outer organisation of a company must promote new ways of thinking. This begins with interdisciplinary teams and continues into cooperations with technology providers, PropTechs and facilities for education and research.
We industry professionals must ask ourselves more than ever before whether we have these signs of the change to all spheres of life in view, and are going to align our strategies and planning with the opportunities they offer today. The goal we pursue at CBRE is to recognise innovations at the earliest stage, to understand them and, where meaningful, to integrate them into tried and proven processes. And it is this ambition that will also support us in the future in providing our customers with the right answers to their questions and needs.
Dr. Thomas Herr, Managing Director, CBRE PREUSS VALTEQ