The attendance at EXPO REAL, held from October 4 to 6, 2022, in Munich, Germany, almost reached pre-coronavirus levels: the exhibition grew by almost 60 percent compared to the previous year. Given the current economic situation, there was a great need to exchange ideas and thoughts.
“In a time of major upheaval, EXPO REAL reaffirms how valuable it is as a platform for exchange and information for the real estate industry,” explains Stefan Rummel, Managing Director of Messe München responsible for EXPO REAL. “Seven halls, 1,887 exhibitors and almost 40,000 attendees—the show has almost reached 2019 levels of participation.”
Yet again, all exhibition sectors have grown significantly: the residential and office real estate, hotel, logistics and retail asset classes; the international joint pavilions as well as those of the regions and cities, start-ups and technology providers. In addition, Ukraine was presented with a forum to evaluate options for reconstruction. Key topics at the show included rising prices and inflation, interest rate policy, ESG requirements, the creation of affordable housing, and the overall economic situation.
A close exchange between politics and industry
At EXPO REAL, Federal Minister for Housing, Urban Development and Building. Klara Geywitz aimed to close ranks with the real estate industry and took part in two-panel discussions on affordable housing. There are many challenges in residential construction: rising construction costs, bureaucracy, skills shortages, climate protection, and demographic change. It is a matter of “creating the underlying conditions to be able to build profitably in Germany and at the same time expand capacity,” Geywitz said. “To do so, we need to enhance productivity, shift more into prefabrication, digitize the entire chain of construction planning, application and execution, and promote subsidized housing.”
Focus on future scenarios
What general conditions will the real estate industry have to deal with? Commerzbank’s chief economist, Dr Jörg Krämer, shared his views, expecting inflation to remain well above two percent for many years to come, key interest rates to rise to a historically moderate three percent, a recession—but no collapse in the labour market as labour shortages and demographic changes continue—meaning that demand for residential real estate, for example, will remain.
Fabian Hellbusch, Head of Marketing Communications at Union Investment, explained: “Given the many upheavals taking place, EXPO REAL 2022 provided important guidance and a good sentiment as to where the wiser strategy over the next six to nine months will be to wait and see, or rather to take very targeted advantage of market opportunities.” Especially now, the fair is important “to discuss current challenges in order to overcome them and to jointly identify attractive growth opportunities,” said Frank Pörschke, CEO of P3 Logistic Parks.
EXPO REAL 2022: the figures
In comparison with 2019, as 2021 was an exceptional year due to the pandemic: Almost 40,000 visitors from 73 countries (2019: 46,747 / 76) came to Munich to attend EXPO REAL. The total number of participants was divided into around 19,500 trade visitors (2019: 22,065) and 20,456 company representatives (2019: 24,682). After Germany, the top ten visitor countries were: Great Britain and Northern Ireland, the Netherlands, Austria, Poland, Switzerland, France, the Czech Republic, Luxembourg, USA and Spain.
The 1,887 exhibitors came from 33 countries (2019: 2,189 / 44). After Germany, the top ten exhibitor countries were: Austria, the Netherlands, Switzerland, Poland, Great Britain and Northern Ireland, France, Portugal, the U.S. and Czech Republic with equal shares, and Romania. International joint pavilions came from Austria (“Austria”, “Europa Mitte”), Switzerland (“Swiss Circle”), the Netherlands (“Holland Property Plaza”, “Holland Metropole”) as well as from the U.S. 45 exhibitors took part in the CareerDay to attract young talents.
The next edition will take place from October 4 to 6, 2023.