A sector undergoing structural change
Our perspective
The construction and real estate industry is at a turning point. Rising demands for sustainability and energy efficiency are colliding with high construction and financing costs, a shortage of skilled workers and growing regulatory complexity. At the same time, digital transformation continues to lag behind in many areas.
While political uncertainty and bureaucratic hurdles are slowing investment, the pressure to develop new business models and rethink existing processes is increasing. Companies that remain flexible, harness digital potential and strategically manage regulatory requirements are laying the foundations for long-term stability and competitiveness.
Current topics & developments
The framework conditions for the German construction and real estate industry have changed fundamentally in a short period of time. Economic uncertainty, increasing regulatory requirements and structural shifts in the market are having a growing impact on investment decisions and project developments. High interest rates, volatile property values and project delays are placing additional pressure on the sector.
At the same time, expectations for sustainable buildings and transparent ESG certification are rising. In this environment, clear assessments, reliable analyses and integrated advisory approaches are becoming increasingly important.
ESG & sustainability
Sustainability has become a key factor in the management of construction and real estate projects. Climate targets, energy renovation obligations and ESG requirements often involve substantial investment and long-term planning. At the same time, the industry remains far from achieving the renovation rates needed to meet climate goals.
ESG reporting – particularly in the context of the EU taxonomy and other regulatory standards – is complex and places high demands on data quality, assessment and documentation.
ESG reporting – particularly in the context of the EU taxonomy and other regulatory standards – is complex and places high demands on data quality, assessment and documentation.
Digitalisation & innovation
Despite growing technological possibilities, the construction and real estate industry often lags behind in digitalisation. Digital planning methods, data-driven management and the use of AI are still applied only selectively. A lack of digital expertise – both within companies and among advisory partners – further slows progress.
Yet digital transformation offers considerable potential to make planning, approval and management processes more efficient, transparent and resilient.
Yet digital transformation offers considerable potential to make planning, approval and management processes more efficient, transparent and resilient.
Financing & profitability
The economic environment has become significantly more challenging. High construction and material costs, rising interest rates and volatile property values are making the financing of new projects increasingly difficult. At the same time, market fluctuations are placing greater demands on profitability analyses and risk assessments.
Managing project delays, lost revenue and declining construction activity requires forward-looking financial management and realistic planning scenarios.
Managing project delays, lost revenue and declining construction activity requires forward-looking financial management and realistic planning scenarios.
Regulation & bureaucracy
Excessive bureaucracy and slow regulatory adjustments place a considerable burden on the industry.Approval processes are often lengthy and not yet fully digitalised, while regulations remain complex and, in some cases, inconsistently applied. Many market participants see this as a major barrier to investment and innovation.
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We focus on value, risk and future viability
Current developments are placing significantly higher demands on tax advisory, auditing and valuation in the construction and real estate industry. Valuations are becoming more complex as renovation requirements, energy efficiency and ESG factors must increasingly be taken into account. At the same time, tax incentive programmes and sound risk assessments are gaining importance.
KHS supports companies in the construction and real estate sector with an integrated understanding of economic, regulatory and sustainability-related issues. By combining auditing, tax advisory, company valuation and sustainability assessments, we help you make well-founded investment decisions and shape transformation processes with foresight. Where required, we also collaborate with long-standing cooperation partners who contribute specialised technical expertise.