This year's Expo Real once again served as a key barometer for the state of the real estate industry. Contrary to widespread expectations and announced cancellations, the halls were well-frequented, indicating a resilient presence of participants. Discussions among attendees this year focused less on future interest rate cuts; instead, the development of property prices was intensely debated. This signals a growing acceptance of current market conditions within the industry.
A pragmatic approach predominated at the exhibition stands, although a feeling of uncertainty remained among many market participants. The reasons for this are diverse: interest rates remain high, and construction costs continue at an elevated level. The crisis persists particularly in new residential construction. Despite political initiatives like the so-called ‘Bauturbo’ (construction turbo), development is progressing hesitantly, partly due to a cautious utilisation of new opportunities by local authorities. This leads to an acute housing shortage in urban areas.
Challenges and Opportunities in Munich
Regional political developments, such as the election results in Berlin, can further influence investor sentiment. Regardless of these factors, however, there is broad agreement that the situation is not as severe as it is often portrayed. A cautious optimism is particularly appropriate in Munich, the venue for Expo Real, as highlighted by industry representative Mr Thomas Aigner from Aigner Immobilien.
Munich continues to manifest itself as an economically strong and liveable location. The city's attractiveness for technology companies and residents remains consistently high. The decision in favour of Germany's Olympic bid is perceived as a positive impulse for the region's image. Compared to the general political climate in other metropolises, Munich demonstrates continued business friendliness and appreciation for stakeholders, despite green government participation. The overall assessment of the fair illustrates that the industry is actively working to overcome challenges, rather than exclusively focusing on complaints.
- —Real assessment of market conditions in focus of discussions.
- —Ongoing challenges due to high interest rates and construction costs, especially in new residential construction.
- —Munich retains its position as an attractive business and living environment.
- —Industry shows willingness to actively tackle problems.
