Headergrafik - Business School

Real Estate Development & Asset Management

Competence Center

The real estate industry is one of the most important industries worldwide. Real estate-related economic activities account for around 19% of gross value added in Germany. In Europe, this amounts to around 17%. In addition, most countries have invested more than half of their national investment capital in real estate. At the same time, real estate consumes about 40 percent of the available energy, 30 percent of raw materials, 20 percent of water and 10 percent of land. The responsibility of companies in the real estate industry is therefore not only to adequately cover their needs, but also to develop concepts and projects in such a way that they also fulfil environmental requirements, taking sustainable aspects into consideration. The development of the product real estate itself represents a significant challenge, as it is a complex, interdisciplinary process (technical, legal, economic), which is both capital-intensive and time-consuming. Real Estate Development is the term used to describe the conception and planning of the construction or revitalisation of real estate based on a combination of location, capital and project idea. Project development consists of the sum of comprehensive services and entrepreneurial decisions, of the necessary investigations, planning, financing, acquisition of land, preparatory measures etc., which are necessary to develop a new property or to revitalize an existing property. The sale of the real asset, or operation and keeping in the portfolio leads to the next phase, real estate asset management. Asset management acts in accordance with the requirements of portfolio management in order to meet the owner’s objectives. Professional property management is essential in order to maximize the quality and value of real estate and to achieve an optimal return on the capital invested for any subsequent exploitation. During the management phase, value-influencing measures are taken through active planning, management, implementation and control in order to increase the value of the property through targeted actions along the entire value creation process of a property investment. Asset management has been the dominant topic in the real estate industry since the beginning of 2006. This striking development is due mainly to the dominance of foreign investors on the German real estate market. However, the revitalisation of existing properties, which represents a challenge for both development and asset management and will occupy the real estate industry in the coming years, certainly deserves special attention here. The owners or asset managers are required to analyse the refurbishment and alternative uses of buildings according to the market and competitive situation, or the condition of the property, and to implement the most profitable option.

Research

Our doctoral student Nicolas Seyler gained his doctorate in the field of sustainability in the real estate industry. As one of the main consumers of resources, real estate is also one of the key drivers of climate change. This effect is intensified by the long average life of an object. Many properties used until 2050 have already been built today. There are countless efficiency issues but at the same time enormous savings potential which are still to be exploited.

Teaching

  • BSc-Module: Real Estate Principles
  • MSc-Module: Advanced Real Estate Management, Real Estate Development
  • Executive Education: Intensive Study Programme Real Estate Asset & Risk Management
  • Executive Education: Intensive Study Programme Real Estate Development