The attractiveness principle: transparency and technology

The attractiveness principle is based on the assumption that when choosing partners, investments or properties, people tend to favour those that are perceived as more promising. In the property industry, attractiveness has therefore long been synonymous with potential returns, financial stability or simply the location. However, the property industry in Germany is currently experiencing a historic low in terms of transaction volumes. How can this be countered?

Sustainability as a driver for change

Over the last five years, the European Union has issued a series of regulations and measures with the aim of anchoring sustainable principles in the economy. Many of these regulations are also relevant to the construction and property industry. The environment, society and corporate governance (ESG for short) are among the core topics in many documents. They can make an important contribution to increasing the attractiveness of the property sector.

At the same time as the ESG criteria, building and portfolio data are also moving into the spotlight. This is because detailed, structured and complete data is essential for assessing and comparing the sustainability and condition of properties. "This is what makes things really complicated," says Rebekka Ruppel, CEO of pom+Germany and Chair of the . "There are currently no uniform standards for recording and reporting ESG data in the property sector. Quantifying this data also brings its own challenges, starting with data availability and quality."

Relevance and availability of ESG data

In response to the uncertainty in the sector, Zentrale Immobilien Ausschuss (ZIA) has set itself ambitious goals: "In the Transparency & Benchmarking Committee, we are pursuing the goal of making the availability of high-quality, standardised data usable for the sector. This applies not only to information relating to ESG, but also to other topics," explains Ruppel. Together with John Kamphorst, she is chairing the committee and is calling on experienced specialists and managers to become actively involved.

The planned focal points are varied, but always with concrete practical relevance. In the first half of the year, the focus will be on benchmarking. For example, the DIN SPEC ESG data and corresponding pilot projects for standardising the data language will be presented at the first meeting at the end of February. In the summer, the committee will discuss how ESG factors will affect the value of property in the long term. The focus will be on selecting and integrating the relevant ESG criteria into existing valuation models for property investors and owners to support informed decision-making.
 

AI, data protection, ethics and modernisation

In the second half of the year, the committee is increasingly focussing on issues relating to artificial intelligence. On the one hand, it is looking at relevant use cases in the property industry, the integration of large language models (LLM) into existing systems and the need for customised solutions. On the other hand, critical aspects such as the necessary data protection considerations and ethical principles will also be discussed. Other points of discussion include the modernisation of expert committees and efforts to create a building and housing register.

Anyone who wants to help shape the process is welcome. "If we want to create a uniform framework for the real estate sector and harmonise the handling of the relevant regulations and technological changes, industry representatives must actively participate in the discussion," says Ruppel.

Find out more!

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Committee dates and topics

Tuesday, 2 February 2024

 

Monday, 10 June 2024

 

Wednesday, 11 December 2024