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BuiltSmart Hub

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

14 Jul 2025

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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.

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