Stuttgart, Germany, June 30, 2025. In the real estate sector, the digital transition is not making much progress. The degree of digital maturity has increased only minimally compared to the previous year – from 3.37 to 3.43 out of a possible score of 5. This shows the recent study Transform to Succeed of IIWM Institut für Immobilienwirtschaft und management, which is part of Aschaffenburg University of Applied Sciences, and Drees & Sommer SE, a consulting company that specializes in construction and real estate. Key findings of the study: the industry is not exploiting its technological potential; it is investing less, while providing hardly any further education and training – and losing innovative capability as a result.
A total of 120 managers and specialists in the sector took part in the survey – from project developers through facility managers to asset managers. “Our analysis clearly demonstrates that the pressure to change is high, but the willingness to take action remains low in many cases,” says Dr. Chris Richter, Associate Partner at Drees & Sommer and Head of the Strategy and Organization division. Although there are pioneers, many companies still fail to recognize the enormous potential of digital solutions to overcome key challenges, such as the shortage of skilled workers, the need to boost efficiency or the fulfillment of environmental, social and corporate governance (ESG) responsibilities.
Decreasing Investments: Digital Transition Is Becoming a Cost-Saving Item
The decline in willingness to invest is particularly concerning. This year, companies plan to invest only 7 percent of their earnings in digital projects, whereas, in the previous year, 19 percent of the companies invested more than 20 percent in such projects. As a result, digital transition is increasingly being viewed as a way to save money rather than as an investment in the future – a worrying trend, as points out Professor Dr. Verena Rock, Director of the course Digital Real Estate Management at Aschaffenburg University of Applied Sciences: “Especially in times of rapid technological developments, such as artificial intelligence, a decline in investment is an alarming signal.”
Insufficient Digital Skills and No Training on Offer
The picture is also sobering with regard to digital skills: only 35 percent of the respondents rate the digital expertise in their organization as adequate – a decline of 10 percent compared to last year’s survey results. Around 25 percent of the companies surveyed do not offer any digital advanced learning tools. More than half of the respondents have access to e-learning offers but interactive attendance-based formats remain the exception – the study assesses them as particularly effective. In addition, managers often underestimate their employees' need for further training and education. This results in an imbalance that is likely to have a negative impact on companies' ability to undergo transformation in the long term.
Focus on the Digital Maturity Model
The study centers on a specially developed maturity model that measures digital progress on the basis of 27 criteria, such as the categories Strategy, Digitization and Transformation. While Transformation performs comparatively well with a score of 4.00, Strategy (3.00 points) and Digitization (3.22 points) lag far behind. At a score of 3.43, the overall maturity level is only just above the previous year’s figure. According to Professor Dr. Rock it is obvious that: “Many companies know that they must act but structure, willingness to invest and a consequent implementation process are missing. Technologies such as Predictive Analytics or process automation have hardly been applied so far.” In her view, there is also a lack of structural prerequisites, preparedness to invest and expertise.
Willing to Change but Not Keen on Implementation
Around 80 percent of the respondents describe themselves as open to change. Yet only one third recognize this openness within their own company. Only 15 percent of those surveyed say that digital technologies are an integral part of their day-to-day operations. “There is a large gap between claim and reality,“ comments Dr. Chris Richter. “The industry remains entrenched somewhere between ambitious vision and hesitant implementation.“
Innovation Culture as a Success Factor
However, the study reveals the key factors to success. Companies with an active culture of innovation have a significantly higher level of digital maturity. They often have relatively new business models, integrated future-oriented technologies, such as artificial intelligence (AI) or blockchain, and they encourage lifelong learning. These enterprises work in a more connected way, internally and externally with partners, as for example property technology (proptech) firms. Their organizational structures are more flexible and enable change. Prof. Dr. Rock brings it to the point: „Digital transformation is not a technical but first of all a cultural challenge.”
Understanding Change as an Opportunity: Who Acts Now Will Have a Clear Advantage
Best Practice examples show how digital transition can succeed: Peer Henke of GAG Immobilien AG speaks about an in-house appraisal system for digital transition projects, which sets clear priorities and ensures that those projects which deliver the best business value are implemented at first. For Pia Hellstern of BUWOG Bauträger GmbH prioritization is a gamechanger. Her company has introduced clearly defined structures in order to tackle the most important operational pain points and solve them systematically.
“The aim of our study is to provide impetus and motivate people to view transformation as an opportunity to shape the future. Whether it is increasing efficiency, regulatory transparency or attractive working environments – with thorough planning, all of this can be achieved digitally," explains Professor Dr. Verena Rock.“
Digital Transition Is a Matter for Management to Deal with
In Dr. Chris Richter’s opinion: “Digitization is a key lever for the future viability of the sector. Those who act now will not only enhance efficiency, but also comply with the legal requirements and increase their attractiveness to skilled workers. Digital transformation must not become an end in itself. It must deliver real added value – and this is only possible if it is anchored in the strategy, professionally implemented and culturally supported.“
A successful transformation involves the interaction between several factors. Digital transition must be viewed as an integral part of the corporate strategy and corporate culture. The development of staff competence requires targeted training and education throughout all levels of an organization. Technologies should not be used on an ad hoc basis, but must be embedded in the value chain. Change needs a cultural framework, i.e. innovation processes that create space for ideas, and leadership that assumes responsibility and actively shapes chance. Only when all these elements interact, can the industry truly realize its digital potential,“ Dr. Chris Richter sums up the situation.
About the Maturity Model
The maturity model was developed iteratively on the basis of the ‘Integral Competence Model’ (integral map), designed by imu Augsburg, and the maturity model ‘Digital Business Processes’ of Germany’s digital association Bitkom, among other sources, and adapted to the specific features of the digital transformation of construction and real estate companies for this study.
When assessing the level of maturity, the study focuses on three dimensions, each with several factors. The first section deals with strategy as a key factor. Core questions include the extent to which a company has digital goals that are clearly formulated and measurable, the extent to which there is room for innovation and new business models, and the status of cooperation with ecosystem partners. In the second section, respondents were asked to provide information on the status of digital transition and transformation in the company. This includes, inter alia, cultural factors, staff competence and change management. The third emphasis is on digital/technical transformation, including technological infrastructure, data analysis and data management, as well as process digitalization and process automation.