As the global real estate sector faces mounting challenges, Expo Real 2024 in Munich comes at a critical time. Experts from around the world will convene to discuss the deepening crisis in the industry and its potential impact on the wider economy. Szymon Mojzesowicz (MRICS ASA), a prominent real estate expert, warns that problems in the market are not only persisting but intensifying, posing risks to financial stability in key economies such as the U.S. and Germany.
Mojzesowicz highlights growing concerns in both regions, with U.S. banks bracing for a crisis similar to 2008, and fears in Germany that real estate could drag down the financial sector. The sharp correction in property values is a major worry, particularly in areas where real estate drives economic activity. While there is hope that lessons from the 2008 crash have been learned, signs of caution and financial instability are already emerging.
European Commercial Real Estate Faces Deepening Crisis as Expo Real 2024 Seeks Solutions
In Europe, commercial real estate has been in crisis for months, with transaction volumes dropping by 60% in the first half of 2024. Investors, increasingly risk-averse, are moving away from aggressive strategies, reducing the capital flowing into the market. Additionally, housing shortages persist across Europe, with available properties often being scooped up by investors, compounding the affordability crisis for regular buyers.
Expo Real 2024 is expected to focus on finding solutions to these issues, including how to stabilize the market and stimulate investment. Mojzesowicz hopes that global investors will outline strategies to revive the sector, offering much-needed direction for local investment policies. The future of the real estate market—and perhaps the global economy—could hinge on what emerges from this pivotal event.