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Home Blog SAP Real Estate Management – Providing a Construct To Contract and Business Management

SAP Real Estate Management – Providing a Construct To Contract and Business Management

SAP For Real Estate

There’s hardly any industry for which SAP doesn’t have an ERP solution. The Real Estate industry is within the purview of SAP solutions as well. And no, you don’t need any specialized SAP software to manage your Real Estate business. SAP Flexible Real Estate management functionality or the RE FX functionality can be activated in SAP S/4 HANA itself. The Flexible Real Estate components in the ERP support every aspect of the real estate business. From contract management to land management, from creating master data to managing portfolios- the RE FX components in SAP S/4 HANA support the real estate industry in a 360-degree way.

Overview of SAP Real Estate Management Functionality


SAP S/4 HANA for contract, lease and real estate is a financial integration that’s natively compatible with SAP S/4 HANA. This specialized integration is meant for the real estate industry, helping companies in this field to manage their business operation in an organized way.

SAP RE FX has three broad solutions that support the Real Estate business management process –

  • Real Estate Object Management

  • Space Management

  • Contract Management

Real Estate Object Management

SAP acknowledges the fact that when it comes to real estate, it’s not just buildings that are considered real estate objects. The land, a group of buildings, the office space- all can be termed as real estate. SAP RE FX, which is an important functionality of SAP industry solutions, allows the creation of all kinds of real estate objects.

Moreover, the real estate master data can be viewed from both a user and an architectural perspective. This means that, in the case of a usage-based view, the real estate will be divided into – business entity, land, pooled space, rental unit, and rented space.

To assign more details to the real estate, you can use the architectural view of the master data. With this, you can store the measurements of the rented space – that is – the measurement of the building or room or office space that has been leased or rented. 

Logical Space Management In SAP RE FX

SAP gives a nice construct to how real estate companies manage spaces. 

  • There is the concept of ‘Pooled Spaces’ from which real estate companies extract spaces to rent. 

  • Spaces that are extracted from the Pooled Space are called Rental Spaces. SAP suggests that the usage type of Rental Space should ideally be the same as that of the Pooled Space. 

  • Then there is the concept of a Rental Unit that can be rented as a complete object.

Although SAP says how a space should be used and marked, the system gives you full technical control to use and mark the spaces the way you like.

Contract Management

SAP offers an entirely flexible contract management functionality in its RE FX integration for SAP S/4 HANA. For example, you can club office spaces of multiple offices in a single contract. The system offers a user-friendly platform to manage contracts related to any lease-in and lease-out transactions. 

Optimized Portfolio Management With SAP Real Estate Management Functionality

A real estate manager with a portfolio of buildings (or spaces) to rent will find it too cumbersome to lease, manage, and manually keep track of all these units. SAP RE FX offers a single platform through which the manager can manage his or her entire portfolio of real estate assets. This real estate management system offers unparalleled flexibility in storing real estate master data. You can add minute details of the real estate units – like measurements of the rental units or rental spaces.

Remain Compliant With Government’s With Asset Valuation Regulations 

SAP RE FX has a fully functional Asset Accounting module that’s geared towards the real estate industry. This module is specially optimized in the SAP Real Estate management system, empowering people in the industry to perform asset valuation based on parameters set by the government. Users can use custom parameters while calculating asset valuation.

Specialized Real Estate Tools for Intelligent Asset Management

Is Real Estate all about land and buildings? No! Modern real estate management can very well include assets that can be present in the building to serve tenants. SAP has a specialized Intelligent Asset Management suite of software that provides a 360-degree asset management solution.

SAP Intelligent Asset Management enables asset owners to –

  • Keep track of all information related to assets from a single platform.

  • Leverage SAP IoT to monitor the performance of assets and plan management accordingly.

  • Optimize preventive maintenance strategies and predict asset malfunction before it happens

  • Take advantage of actionable insights

Leverage the Power of Cloud With SAP Cloud Real Estate

SAP Cloud for Real Estate is a SaaS-based real estate management software that offers a centralized way of managing real estate assets. From storing master data in a centralized environment to specifying the measurement of rental spaces and facilitating smooth portfolio management – SAP Cloud For Real Estate is the perfect solution for managing real estate assets remotely from anywhere.

Case Study: How SAP RE FX Empowers Swiss Federal Railways to Avoid Complexity in Managing Real Estate Assets

The real estate business does not just entail leasing in or leasing out buildings, land or office space. It can get really complex. Take the example of Swiss Federal Railways. The Railway company doesn’t just build functional railway stations. It also ensures the railway stations are attractive to tourists and visitors. And how does it achieve this purpose? By leasing out spaces in and around the railway stations to businessmen and small store owners who set up shops and stores in and around the railway stations built by the railway company.

Sap ERP for real estate 

Swiss Federal Railways does not impose a fixed rent on these store owners. The rent to be paid by an individual store owner is calculated based on how much revenue that specific store owner generates.

As you can see, Swiss Federal Railways needs to –

  • Monitor the footfall in each station

  • Monitor the revenue generated by each store owner

  • Calculate the rent based on the second metric

  • Monitor the performance of the stores based on the first two metrics. 

  Read more: SAP Business One Partner

Traditional real estate software would not have been able to take all these criteria into account. SAP RE FX makes it possible for Swiss Federal Railways to manage its real estate assets, taking store performance into account. The SAP industry solution enables Swiss Federal Railways to measure retail KPIs as part of its real estate management activities.

Identify the Perfect Solution for Your Unique Real Estate Needs. 

Contact Silver Touch Technologies- the Reliable SAP Partner

SAP Real Estate management system can be tweaked based on the unique needs of your real estate business. This is where Silver Touch Technologies comes in. We empower real estate businesses to get the most out of SAP RE FX. Remember, SAP RE FX does not natively support buying and selling real estate assets. Our SAP integration solution makes adding such custom functionality possible.

Contact us today and free your real estate business from the shackles of business process complexities.


Q1. What is SAP real estate management?

SAP Real Estate Management is a software solution provided by SAP, a leading enterprise resource planning (ERP) software company. It is designed to support and optimize the management of real estate portfolios and properties within organizations.

Q2. What is SAP intelligent real estate?

SAP’s suite of intelligent technologies, such as artificial intelligence (AI), machine learning (ML), and Internet of Things (IoT), can be utilized to enhance real estate management processes. These technologies can enable automation, data analysis, predictive analytics, and smart decision-making.

Q3. What are the capabilities of SAP real estate?

SAP Real Estate Management provides a range of capabilities to support the management of real estate portfolios and properties. Some of the key capabilities include: 

  • Lease Administration
  • Contract Management
  • Property Accounting
  • Space and Occupancy Management
  • Asset Management
  • Analytics and Reporting

Q4. What is refx module in SAP?

The REFX module in SAP stands for Real Estate Management (RE) and Flexible Real Estate Management (FX). It is a module within SAP’s enterprise resource planning (ERP) system that specifically caters to real estate management processes.

Q5. What is lease management in SAP?

Lease management in SAP refers to the functionality and processes involved in managing lease agreements within the SAP software ecosystem. It is typically handled by modules such as SAP Real Estate Management (RE-FX) or SAP Lease Administration by Nakisa.

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Digital Transformation Expert

Mr. Adarsh Parikh

Associate Director
Silver Touch Technologies Canada