Sustainability and ESG in the real estate industry: Deloitte at Expo Real 2024

Deloitte GmbH is part of Deloitte's global network and offers comprehensive services in the areas of auditing, risk consulting, tax consulting, consulting and financial advisory in Germany. The company supports clients in overcoming complex business challenges, promotes innovation and sustainable growth. With a focus on digitalization and sustainability, Deloitte advises both large corporations and medium-sized companies. Deloitte employs over 457,000 people in over 150 countries worldwide.

The importance of ESG and sustainability at Expo Real

Sustainability plays a central role at Expo Real, especially in the area of ESG (Environmental, Social, Governance). Companies that operate globally, such as the one mentioned in this example, are increasingly having to deal with these issues as they are at the top of many board members' agendas. ESG reporting and sustainability reports are now an integral part of many companies' business strategies. The transition to projects related to the Corporate Sustainability Reporting Directive (CSRD) is also a key issue.

Effects of interest rate policy and economic challenges

After a period of uncertainty, the European real estate industry is seeing the first rays of hope, particularly as a result of possible interest rate cuts by the European Central Bank (ECB). These could stimulate the market as early as spring 2024. Despite the current challenges, such as rising construction and energy costs and interest rate hikes, many companies continue to offer services that are in demand regardless of the economic situation. However, the construction industry is facing major hurdles, as long approval times and bureaucratic hurdles are delaying urgently needed residential construction.

Solution approaches: Serial construction and faster approvals

The high demand for housing, particularly due to the influx from crisis regions such as Ukraine and Syria, far exceeds the current supply. This requires solutions on the supply side, such as faster building permits and more cost-effective construction methods. One promising approach is serial construction, which promotes the industrialization of the construction process. This efficient construction approach allows homes to be built faster and at lower cost, which is urgently needed to relieve pressure on the housing market in Germany.