ESG reporting and housing in the focus of the property industry

The property industry is in a phase of structural change. In addition to economic factors, regulatory requirements and social expectations are increasingly taking centre stage.

In particular, topics relating to sustainability and residential property development are currently dominating the agenda of many companies. In this context, Expo Real serves as a platform for dialogue and positioning. International consulting firms in particular use this stage to present their perspectives on market trends and regulatory developments.

Deloitte focuses on ESG reporting and strategic consulting

Deloitte is one of the global companies that focuses its activities in the property sector on sustainability issues. ESG - environmental, social and governance - is no longer just a side issue, but an integral part of strategic decisions at board level. Reporting requirements and regulatory projects are currently at the centre of attention. Companies increasingly have to prove how sustainable their business models are and what measures they are taking. This also includes the implementation of requirements such as the Corporate Sustainability Reporting Directive, or CSRD for short. In addition to reporting, Deloitte also supports its clients with strategic issues. The aim is to prepare companies for upcoming requirements at an early stage and to establish appropriate processes.

Regulation through the Green Deal drives sustainability forward

The dynamics in the area of ESG are significantly influenced by political requirements. In Europe, the Green Deal plays a central role. It defines framework conditions that oblige companies to reduce emissions and improve their sustainability performance. This regulation has a direct impact on the property sector. Buildings must be operated more efficiently, emissions reduced and processes made more transparent. For many companies, this means a fundamental change to their previous structures. The international picture varies. While Europe is comparatively advanced, other markets such as the USA are gradually following suit. In regions such as Africa, on the other hand, the focus is often on other challenges, particularly in the area of housing supply.

Property market between interest rate development and stabilisation

In addition to regulatory issues, economic factors are influencing the development of the market. Rising interest rates and high construction costs have led to a noticeable reluctance to invest in recent years. At the same time, there are signs of stabilisation. A possible interest rate cut by the European Central Bank could provide new impetus. Many market participants expect the situation to improve again in the medium term. Deloitte is observing this development from a comparatively stable position. The service portfolio is organised in such a way that it is not exclusively dependent on the current market situation.

Housing shortage as a key problem in Germany

The housing market remains a particularly pressing issue. In Germany, demand clearly exceeds supply. This development has several causes, which are mutually reinforcing. On the supply side, the focus is primarily on rising construction costs, higher energy prices and complex authorisation procedures. In many cases, it takes several years before projects can be realised. On the demand side, immigration, among other things, is putting additional pressure on the market. This creates an imbalance that can hardly be equalised in the short term. The key factors can be summarised as follows:

• rising construction and energy costs
• lengthy authorisation procedures
• high demand for housing
• insufficient new construction activity in recent years

Serialised construction as an approach to speed things up

One possible approach to relieving the market is the industrialisation of construction. Serial construction methods make it possible to standardise processes and thus reduce time and costs. Projects can be realised more quickly thanks to prefabricated components. At the same time, processes can be better planned and coordinated. This approach is becoming increasingly important as traditional construction processes reach their limits. Deloitte sees this development as an opportunity to sustainably strengthen the supply side. However, the prerequisite is that the regulatory framework is also adapted to enable faster approvals.

Global perspective and long-term development

The topics of sustainability and residential property development will shape the industry in the long term. While ESG requirements are already firmly established in Europe, other regions are still at the beginning of this development. At the same time, it is clear that economic and social factors are closely interlinked. The challenge is to harmonise both aspects. In this environment, Deloitte is positioning itself as a partner for companies that want to actively shape this change. The combination of regulatory expertise, strategic consulting and international experience forms the basis for further development.