#320 CapEx vs. OpEx: Real Estate Investment and Operational Costs

BuiltSmart Hub's podcast, focuses on the strategic
importance of understanding and managing CapEx (capital
expenditure) and OpEx (operating expenditure) in property
development and management. It explains that CapEx stands
for long-term capital expenditure that increases property value,
such as building works or major refurbishments, while OpEx refers
to recurring operating costs such as utilities and maintenance.
Investment and operating costs are closely linked and together
influence the profitability, sustainability and market
positioning of a property throughout its life cycle. An
integrated approach from the outset is recommended in order to
increase profitability, achieve ESG goals and increase property
value by strategically balancing these types of costs. Practical
examples and tips show how this can be achieved in practice.