Construction and Real Estate NETwork (CORENET)

The German real estate and construction industry is facing a transformation, triggered by fundamental changes in technology, the economy and society. The purpose of this paper is to explore how these changes exert pressure to adapt on existing business models, while also offering opportunities for their further development. A model that attributes the transformation of the real estate industry to megatrends, specific structural change drivers, business models and the interaction of the groups of players in the value creation system is developed. The model is tested empirically by a survey. Structural equation modelling is used to measure the impact of various determinants of transformation and the relevance of adaptation strategies to the different groups of players. As a result, the study explains three impact mechanisms of the transformation in the real estate industry. The transformation originates from the occupiers, who need more flexible space and are focusing on holistic solutions that are not provided by the real estate industry. Service providers are striving to increase the efficiency of their traditional processes, rather than evolving new business models or services. The investors recognise the increasing importance of the occupiers but they are rarely pursuing the resulting strategies. Property developers recognise these requirements: their adaptation strategies most strongly question their previous business. For practitioners, the results point out the opportunities and risks of transformation and help to illustrate the need for change. For academicians, the results indicate a way to explain and measure the transformation of a value creation system.

PurposeESG (Environment, Social, Governance) has taken on increased importance in recent years for all stakeholders, with the S dimension now taking on a stronger focus in the real estate space. This paper proposes a new metric to be used in the S space to assess improvements in aspects such as gender equality and cultural diversity in real estate. It adds to the S metrics currently available to see the more effective delivery of the S dimension into real estate investment decision-making.Design/methodology/approachA new S metric in ESG is proposed and validated. Using this metric, examples regarding gender equality and cultural diversity are assessed among leading real estate players in Australia. This S metric is assessed over a number of time periods to demonstrate the improvements in gender equality and cultural diversity in these major real estate players.FindingsThis new S metric is seen to be highly effective and robust in capturing the changes in various aspects of the S dimension in ESG in the real estate space today; particularly concerning gender equality and cultural diversity. It is clearly able to demonstrate the significant changes in increased participation of women at the more senior leadership levels by leading players in the real estate space.Practical implicationsWith ESG becoming a critical issue in the real estate sector, issues involved in the S space will take on increased significance going forward. This is critical, as the elements of the S dimension such as gender equality and cultural diversity are important aspects for an effectively functioning real estate industry. The S metric developed in this paper can be used for benchmarking purposes over time, as well as between real estate players, between sub-sections within a real estate organisation, and comparing against other industry sectors. It is also relevant in all organisations, and is not just limited to the real estate sector. Additional metrics in the S space are an important development to further empirically assess the effective delivery of the S dimension of ESG in the real estate sector and more broadly.Originality/valueThis paper specifically proposes this new S metric in ESG in the real estate industry. This is a key issue for the real estate industry going forward at all levels, as it will facilitate a more diverse real estate industry and more effective real estate investment decision-making. This S metric is applicable in all organisational sectors where the S dimension of ESG is important.

This study aims to identify the most critical green supply chain drivers and to explore the most prevalent drivers in the real estate industry in India. Through literature review, we identified 13 green drivers in the real estate sector in India. A structured questionnaire was administered to 280 potential participants, out of whom 150 responded by filling out the questionnaire. The respondents were working in reputed real estate companies comprising owners, contractors, consultants, architects, and project management companies in Delhi National capital region (NCR). The relative relevance index was used to rank the various green drivers in the real estate industry in India. Multiple regression analysis was used to establish the degree of linear connection between the variables. T-tests examine the differences between 13 decision factors and dependent variables. The cost–benefit of green supply chain drivers in a LEED-certified real estate project in India established the efficacy of green supply chain drivers in the real estate industry in India. The study’s findings indicate that senior management, developers, and the government are the most crucial drivers for implementing the green supply chain in the real estate sector. The study’s findings further confirm that green building approaches, i.e., green procurement, green transportation, building information modelling (BIM), building energy modelling (BEM), and prefabrication procedures, are underutilised in the real estate sector in India.

PurposePropTech has shown important implications for real estate; however, it remains a poorly understood phenomenon in both academia and practice. This paper aims to advance the understanding of PropTech by disentangling what the real estate sector needs from technology and, in parallel, observing closely the activities of PropTech businesses in two different countries.Design/methodology/approachThe paper adopts a mixed-method approach relying on qualitative data collected through interviews with PropTech players and real estate operators, and quantitative data collected through multiple sources on the Finnish and Italian PropTech ecosystems. The analysis is exploratory and descriptive.FindingsThis study underscores the potential benefits that digital technologies, introduced by PropTech, can add to the real estate sector: data integration; decisions informed from data; balance of new and old approaches to problem-solving; change in vision; adaptability of technologies and business models; and new professional profiles. These benefits are obtained when technology enables innovation from cross-pollination of different sectors. This becomes evident through the analysis of NACE activities, which demonstrates that innovation not only depends on interactions between property and technology, but the phenomenon covers a much broader spectrum of activities and industries.Originality/valueOur exploratory analysis brings up new evidence that not only the real estate sector and property sector are affected by PropTech but the phenomenon covers a much broader spectrum of activities and industries. This paper contributes to the debate on technology innovations and value chain in the real estate and construction sector, while adding a cross-country perspective.

This paper examines the evolution of China's present real estate market and the illumination of the American subprime mortgage crisis through an analysis of the latter. The article explains and analyzes the causes of the subprime crisis, and then discusses its impact on the American real estate industry at that time. Subsequently, through the analysis of the supply and demand of the Chinese real estate industry, it is believed that China's real estate sector has three related points to the American real estate industry during the subprime crisis. Firstly, the excessive confidence in the US market and the large population of some cities in China. Secondly, the financial derivatives and the management of them in the US market and the Chinese market. Thirdly, the excessive issuance of personal credit in the US market and the loose regulation of property companies in the Chinese market. At the end of the paper, based on the experience learned from the US subprime mortgage crisis and taking into account the position of the Chinese real estate market today, preventive measures and countermeasures are put forward to provide a reference for future risk prevention.

PurposeThis paper gathers initial evidence about the nature and features of the equity crowdfunding model in Italy, especially in terms of regulations. The purpose of this study is to examine how equity crowdfunding might support the real estate sector in Italy.Design/methodology/approachTo explore the recent initiatives in the development of FinTech in Italy, especially referring to equity crowdfunding’s instrument, a qualitative perspective is used. In particular, this paper relies on primary data from regulations and secondary data from the public domain, which are examined in relation to the current literature.FindingsThe results of this study show that equity crowdfunding represents a funding method that is rapidly increasing in Italy, despite rather rigid regulation. Among the various sectors involved, the real estate sector could benefit from the crowdfunding models and, specifically, from the equity one. The development of new real estate equity crowdfunding portals that allow diversification of investment (by reducing the typical entry barriers for real estate investment) could guarantee greater investment transparency and simplicity.Practical implicationsReal estate crowdfunding can be a simple way to invest in the real estate industry. Thanks to the use of technology, specifically internet-based platforms, this type of crowdfunding allows for small investors, as well as professional investors, to access an asset class otherwise not open to small investment tickets and improve the diversification of investments.Originality/valueAlthough recent literature has examined the concept of crowdfunding and highlighted different models, aspects and campaigns, no prior studies, to the authors’ knowledge, have explicitly and jointly investigated, also based on the state of art of regulation, the equity crowdfunding model and the real estate sector in Italy.

Considering that the real estate industry is a critical industry to promote the economy in China, it is necessary to measure the real estate performance. However, few studies about the performance evaluation of China’s real estate industry have focused on the production process. To fill this gap, this paper proposes a two-stage framework to investigate the real estate productivity of 30 sample provinces on mainland China from 2008 to 2015, based on a common-weight global Malmquist productivity index (MPI). The major findings are shown as follows: (a) the real estate efficiency is low, and it is mainly caused by the inefficiency in the sales stage, not the development stage; (b) the development trend of the real estate sector in China is sensitive to the government policies, and the fluctuations of MPI are consistent with the direction of policy adjustment during the observation period; (c) as for the regional analysis of MPI, we introduce the concept of the dependence degree of the economy on the real estate industry and predict that MPI in economically underdeveloped regions may decline in the future. Finally, policy recommendations are provided for the high-quality development of China’s real estate industry.

The article studied the real estate daily risk and returns. We found the single model (CAPM) can excellently explain the real estate stock and industry daily return, The mostly betas of real estate stock and real estate industry are higher than 1 which means that the systematic risk of real estate industry is higher than the market risk, there is no significant difference of real estate daily betas between the advancing markets and declining markets.

Purpose: Climate Change affects all countries in the world. It impacts negatively on the living conditions of humankind, especially livelihood, temperature change, rainfall regime, and rise in tidal waves. Design/Methodology/Approach: The population in the real estate industry. A descriptive design was used, including questionnaires, to gather data. Since the study sought to examine the willingness to purchase accordingly, a logit regression model was used to predict the likelihood that the dependent variable willingness to pay (WTP) equals 1 (rather than 0). Findings: Income level, price of the products, respondent’s age, gender, and availability of policies concerning eco-friendly products and identified associated health risks positively influence respondents’ WTP. The study reveals that in the real estate sector of the Ghanaian economy, there is a positive WTP eco-friendly roofing product; hence, entrepreneurs and investors should take advantage of the urgency to reduce the impact of climate change in Ghana by investing in eco-friendly products for both the real estate and construction sectors of the economy. Recommendations: The results show that any eco-friendly roof material must raise consumer awareness about the effects of climate change and shape consumer perceptions.

This paper explores the effect of the herd mentality on consumers’ buying decisions in the real estate industry, which is highly influenced by social media influences. It helps to understand how social media influencers shape consumer behavior and decision-making processes in the economy of real estate transactions. Social media influencers significantly impact herd mentality, leading to market jumps and potential risks in the real estate area. The paper also contributes to the debates on the role of social media in shaping consumer behavior and its connection with the real estate industry. This paper provides awareness for researchers seeking to understand and navigate the real estate market dynamics in the digital age and fast-changing economy today. Using social media in this industry today is indeed a significant determinant of essentially making your clients, your fans. The way homes and agents are perceived on social media is crucial to the success of the industry.

REITs, as unconventional real estate financial tools, are considered to be the most advanced productivity representatives in the real estate industry. With the issuance of the “Notice on Promoting the Pilot Work of Real Estate Investment Trusts (REITs) in the Infrastructure Sector”, the establishment of China’s real estate investment trusts (REITs) market has become a frontier issue that academia, real estate and financial industries are most concerned about. This article mainly uses the comparison method to analyze the average return rate, FFO growth rate and dividend rate of US and Singapore REITs from 2019 to September 2020. The study found that: when the COVID-19 pandemic and the overall economic environment is unstable, all REITs have varying degrees of negative impact, especially for hotel REITs and retail REITs, the adverse impact is more serious, and the adverse impact on logistics REITs and digital computer room REITs is small. The results show that US and Singapore REITs can better resist risks by adopting the diversified portfolio theory. Based on the comparison of the performance of US and Singapore REITs, this study suggests the future of China: First, pay more attention to the central and western regions and thirdand fourth-tier cities to achieve geographic diversification; second, pay attention to the bright future of logistics REITs and new infrastructure REITs.

With the rapid development of the real estate industry, the demand for talent in China's real estate industry has increased significantly. By strengthening the knowledge expansion and skills upgrading of practitioners, we can provide talent reserves and motivation for the development of the real estate industry. Efforts to crack down on chaos in the real estate market should be intensified, and the entry qualifications of practitioners should be standardized from the source. In addition, violations of laws and regulations in the real estate industry should be dealt with seriously based on laws and regulations to maintain the healthy and orderly development of the real estate market. This chapter focuses on how to improve the professional skills of practitioners in the real estate industry, including the training objectives of real estate administration personnel, the education and training methods of public officials, and the problems in continuing education. From the perspective of strictly regulating the entry of personnel in the real estate industry, the qualifications required of practitioners are stipulated. Finally, the disciplinary measures that should be given to those who violate laws and regulations in the real estate industry are expounded.

This paper examines the evolving needs of the real estate industry in Uganda, particularly considering the significant changes brought about by the COVID-19 pandemic. It draws attention to the necessity for universities to update their real estate curricula to prepare undergraduate and graduate students for the current and future demands of the workforce. Using a qualitative research design, the study involved semi-structured interviews with real estate consultants who have hired graduates of the Bachelor of Real Estate Business Management of Makerere University in Uganda. The findings reveal that the most critical knowledge and skills for today's real estate graduates are in health and well-being, property valuation, legal aspects, information and communication technology (ICT), and research. This research is important as it highlights the essential areas of knowledge and skills that real estate academic programmes must emphasise to effectively prepare students for the modern real estate industry.

In an era of technological advancement, the real estate sector is poised for a transformative leap with the introduction of an AI-powered chatbot that integrates LangChain technology and machine learning. The proposed method aims to redefine user experiences by providing comprehensive insights into land property, evaluating PDF documents, and offering invaluable guidance on real estate law. The core objectives of this endeavor are twofold : to enhance user trust and to optimize profitability within the real estate industry. Leveraging cutting-edge AI capabilities, our chatbot promises precision in legal knowledge and personalized interactions using Large Language Models (LLMS) and NLP driven approaches, ultimately reshaping the way individuals and businesses navigate the real estate landscape. Keywords - LangChain, AI, Chatbot, Real Estate, Large Language Models, NLP.

Consumer centricity (C-C) in the Indian real estate sector has gained prominence since the introduction of the Real Estate (Regulation and Development) Act in 2016. For a growing economy such as India's, with significant dependence on the construction industry to catalyze economic development, real estate consumerism is of vital importance to spearhead growth in the construction industry. This study critically examined the positioning of consumers in the Indian real estate sector over the years and to date in order to identify areas requiring interventions. Within the framework of the law, key factors defining and contributing to consumer centricity with regard to the delivery of real estate assets were identified. Various real estate sector–specific statutes were traced back along a timeline; they were assessed for the presence of the identified consumer-centric factors. The changes in legislative intent over time were coupled with timely judicial interpretations of laws in courts and regulatory forums. Lastly statutes of significance to real estate asset delivery were probed for inherent loopholes in their frameworks. The growing impetus to consumer centricity both in the making and interpretation of real estate laws was clearly established in the present study. However, existing laws of importance to real estate asset delivery were identified to be contributors to the creation and preservation of an inherent imbalance in the design and power structure of the sector, to the detriment of consumers of real estate assets. The findings undoubtedly indicate that to stimulate growth in the construction industry, the need of the hour is to place consumer centricity at the heart of affairs through the correction of inherent loopholes in the framework of law governing real estate asset delivery.