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Home, investment property, CO2 source – real estate can be viewed from many different perspectives. And each perspective yields different results. When it comes to real estate as an investment, for example, it becomes clear that no other asset is more popular in Germany: At the end of 2016, of Germany's total gross fixed assets, around 80 percent on buildings of all kinds. At the same time, they promise – at least currently – a good return. Since the early 1990s, real estate prices have often known only one direction: up. Looking at the Herengracht Index shows, however, that this is not only historically unique, but also does not necessarily have to continue like this forever.
However, if you look at real estate through the lens of climate change, the sector becomes a problem. According to the German Real Estate Association, the building sector causes around 30 percent of all greenhouse gas emissions in the country. Globally, the figure is said to be as high as 40 percent. On the other hand, real estate is also directly threatened by climate change, which it thus contributes to. around 19 percent of retail space and 16 percent of offices in Europe are threatened by rising sea levels. And in regions where extreme weather events are increasing, real estate prices are likely to fall.
Proptech startups from Munich
Investors, real estate developers, the construction sector, and, of course, tenants and landlords are now operating in this field. And this is still largely analog, something numerous startups want to change – in Munich alone, our Insights know of 84 start-ups in the industry.
One of them is Home equityThe Munich-based proptech specializes in partial real estate sales. The startup purchases a portion of the properties itself and becomes a silent partner. At the same time, it receives a service fee for management. The owners, in turn, receive an immediate payout and, in return, must pay a usage fee on the sold portion, comparable to rent. However, partial sales have been criticized, including by the financial regulator BaFin and consumer protection agencies. We explain how Heimkapital handles this issue starting at minute 4:40.
Real estate sales are also the focus of Properbird, but with a completely different outlook. The startup's platform originally collected daily transaction data from leading real estate platforms and brokers to help consumers select brokers based on facts. A pivot later, Properbird now offers this data to banks, appraisers, and other market participants. We tell the story in detail starting at minute 7:15.
More sustainability for the real estate industry
Not sold, but rented, is Shareyourspace (from minute 10:35). The startup's platform allows offices, workstations, or meeting rooms to be booked during unoccupied periods. Booking periods are flexible, from one hour to one year. The entire transaction is handled online by the company itself, so there are no brokers involved. In this way, Shareyourspace also addresses the office needs of companies that have changed due to the coronavirus pandemic.
Premium Ultimately, sustainability in the real estate industry is a top priority. The PropTech startup's platform is aimed at project developers as well as housing construction companies and property managers. They can all use Predium to define ESG goals for their properties, select measures, and price investments. Furthermore, the solution automatically generates ESG and other reports. Starting at minute 13:55, we explain who is behind the startup and how it's being received in the real estate industry.
The VC 2bx
In this episode we will also introduce one of Predium’s investors in more detail, namely 2bxThe Berlin-based VC has been active since 2022 and specializes in urban tech. We explain exactly what 2bx focuses on and what the investor offers its portfolio companies starting at minute 16:35.
