Real Estate & Construction

BDO experts lead construction and real estate towards sustainability, digitalization, and smart technologies.

Construction and real estate: building a future-proof sector together

The construction and real estate sector faces a series of complex challenges, but also exciting growth opportunities. Sustainability, digitalisation, modular construction and smart technologies play an important guiding role in all of this. Some key challenges include: 

  • a price-volatile and scarce supply of building materials, which has a negative impact on the cost of construction and real estate projects 
  • stringent sustainability targets (from renewable energy to EBP) require investments in green technologies and materials (even if European regulations in this area are not always clear) - banks refuse to grant loans to over-polluting construction projects 
  • strict regulations and building standards, such as the construction shift or strict licensing policies 
  • a structural shortage of skilled workers, partly due to insufficient inflow from schools and the negative image of the (construction) sector (BDO examines how young people - Gen Z and Alpha - view the construction sector
  • the economic recession which is putting pressure on demand for real estate, including rising interest rates, falling demand for office property (due to more work from home) and the difficult switch from non-residential to residential property may reduce the demand for real estate 
  • the integration of advanced technologies such as Building Information Modelling (BIM) for better planning and visualisation, drones for site inspection and monitoring, artificial intelligence (AI) for data analysis and predictive maintenance, and blockchain for secure and transparent transactions, which is crucial to increase operational efficiency and reduce the cost of real estate projects. At the same time, digital transformation in the sector requires a robust strategy to ensure data privacy and cybersecurity, in order to maintain the integrity and confidentiality of sensitive information and comply with regulatory standards. 

In the construction and real estate sector, we see numerous opportunities, including:

  • increasing sustainable construction and green development, with opportunities for eco-friendly designs and energy-efficient buildings (with Odot supporting organisations in buying and selling energy as an expert in energy contracts and trading) 
  • focus on circularity, such as lease formulas (instead of purchase) or affordable housing with rent as an advance payment for a mortgage loan 
  • digitisation and BIM (Building Information Modelling) which increase efficiency in design and construction processes and allow to detect opportunities, such as incorporating additional commercial areas into the project. 
  • increasing demand for modular and prefabricated structures, driven by flexibility, speed and cost control 
  • an increasing trend towards urban densification and smart cities, offering new development opportunities 
  • the rise of remote work, creating additional opportunities for the development of industrial projects and office property management. 

How BDO can help

To take advantage of new growth opportunities, companies in the construction and real estate sector need to:

  • continue to thoroughly update their knowledge of the real estate market, land use planning and (local) urban planning - a good knowledge of local regulations and building standards is key.
  • further develop their relationships with key stakeholders - such as investors, project developers and local governments - spreading the risks in the ecosystem among various parties.
  • be fully committed to standardisation in construction projects, in every phase (from preliminary study to execution).
  • continue to invest in quality and safety, as construction projects require strict quality controls and safety measures. 


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Why choose BDO

How does BDO make a difference for entrepreneurs operating in construction and real estate?

  • Our experts know this sector inside out. One of the services BDO can offer is portfolio management of larger investors, for optimal portfolio composition and efficient management. At the same time, we provide practical advice in technologies that can change the sector disruptively. 
  • In addition, our experts advise you in various sub-areas, from digital transformation projects to feasibility studies to financing options. In other words, we offer you a one-stop shop for the value chain of realising or selling real estate. And of course, BDO is also strong in legal or tax advice in this area. 

Do you need legal guidance for your Real Estate or Construction projects ?

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