Greatest potential in region on lower-level developed markets

CEE Property Forum 2019

The representatives of Novaston platform, leaded by Mia Zecevic, managing director, attended a two-day conference CEE Property Forum, held in Vienna, from September 18 to 19. This conference gathered top professionals from the field of real estate. The main idea, which was the leitmotif of each panel, was that the current situation on the real estate market is in the state where all parameters show positive changes, that is to say improvement when compared to the previous period (the level of investments, arrival of new investors, rise of rent, decrease of % of the space not rented and of yields %).

The fact also discussed was that, due to the present situation in the UK (the question of Brexit), and the conservative politics currently in Germany, risk-averse investors decide to move the focus to Poland, the Check Republic, and the capitals of CEE region (Vienna, Bratislava, Budapest). A group of investors more risk-prone, opts for investments in bigger cities in Poland, the Check Republic, and Austria, but also in the countries such as Romania, Bulgaria, Slovenia, Croatia, and even Serbia. What was also emphasised on some panels were the investors from China and Korea who recognised CEE market as adequate for investment.

CEE Property Forum 2019The managing director of Novaston platform, Mia Zecevic, who participated in the panel "Investing in CEE region- Bulgaria, Serbia, Croatia, and Slovenia", highlighted that political changes from the beginning of the millennium brought the first hand of direct foreign investments, starting with a few funds from Israel.

"Nevertheless, expansion has continued over the years, and the arrival of investors such as Atterbury, Hyprop, NepiRockcastle, Immofinanz, and GTC has had the great impact on the overall situation with real estate and the risk reduction in the eyes of investors. What mustn’t be forgotten is that the biggest retail project in Serbia, BW Gallery, is planned to be open on 93,000sqm very soon. This will significantly change the ratio of players’ strengths in this sector, and the calmer period will follow most probably, given the fact that there will be a huge number of sqm per 1,000 citizens in Belgrade," Mia Zecevic explained the current situation.

At the end of the discussion, she concluded that the greatest potential in the region is on the markets developed on the lower level, like Macedonia, Bosnia, Kosovo and Albania.

X
Cookies Disclaimer

Novaston Group may use cookies in order to help us understand your needs and provide you with a better user experience. You may prevent the setting of cookies through our website by changing settings of your Internet browser.