General optimism, attractive investment opportunities and more capital characterises the Central and Eastern European property market that is now considered a favourable investment destination by international investors. The second Emerging Europe Property Forum, co-organised by Portfolio Property Forum and RICS, took place on 8 November at the RICS HQ in London.
RICS sentiment indices show that both in terms of rents and capital values, Hungary is expected to show the biggest growth within the region. According to Jeffrey Matsu, Senior Economist of RICS, in the SEE region Romania and Bulgaria presented the most promising figures, while in Western Europe it is Germany and Spain that has the most positive sentiment.
KPMG has published its Property Lending Barometer for the seventh time this year. The publication surveys representatives from nearly 100 banks in 21 countries throughout Europe; Pál Dános, Director of KPMG Hungary, presented this year’s results in London. The majority of respondents haven’t seen major changes in bank’s activity over the last year and believe that many banks are still a bit afraid of lending for property investments in markets which have seen many non-performing loans. In spite of favourable macroeconomic and financing conditions, European real estate investment volumes were down in H1 2016 compared to the same period of last year.
Gijs Klomp MRICS, Investment Director at New Europe Property Investments, one of the biggest South African investors present in the region, also considers Bucharest the most attractive market of CEE. Unlike most investors, he is not concerned about the lack of liquidity in Southeastern European markets as NEPI makes long term investments and is able to sit through crises.
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