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Why Are There Hardly Any Research and Development Departments in the Real Estate Industry?

How innovative is the real estate industry?

What challenges hinder progress, and what strategies promote it? These questions were at the heart of the guest lecture by Kristin Reichert-Nies (KPMG), who provided exciting insights into the "Road to Disruption" study during Gunnar Gombert's real estate management lecture at IU.

Achieving GHG Reduction: Leveraging Innovation for Sustainable Real Estate
Road to Disruption (Source: Kristin Reichert-Nies, KPMG)

Innovation Potential in the Real Estate Industry

The study, conducted by KPMG in collaboration with Sarah Schlesinger (Blackprint), examines the industry's capacity for innovation and highlights both facilitating and inhibiting factors. A key finding: Innovations are essential for long-term business success, maintaining competitiveness, and cost efficiency. However, there are significant hurdles that slow down companies, including bureaucratic structures in large firms, conservative corporate cultures, and a lack of personnel and financial resources—particularly in smaller companies.


Challenges and Opportunities

Based on a survey of 204 industry experts, the study reveals that many companies are already taking steps to foster innovation. These include partnerships with start-ups, establishing internal innovation departments, and investing in research and development. However, many businesses lack strategic integration and sufficient budgets for early innovation phases. Leadership plays a crucial role, yet many executives hesitate to take risks and fully support new ideas.


Survey participants identified the greatest innovation potential in the fields of sustainability, digitalization, new construction/renovation, as well as process and data management. The study advocates for a more open innovation culture where failure is seen as a learning process, and companies place greater emphasis on interdisciplinary collaboration. To further enhance innovation capabilities, businesses should expand innovation networks, optimize internal structures, and establish a leadership culture that fosters innovation.


Kristin Reichert-Nies’ inspiring lecture made one thing clear: The real estate industry faces significant challenges—but also tremendous opportunities. Now is the time for change! Dear students and young professionals: Your ideas and innovative spirit are needed. Our industry needs innovation—urgently!


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