The GDP growth estimate of up to 5% for countries in Central and Eastern Europe (CEE) will attract more institutional money in the regional property markets, suggested speakers during the local & cross-CEE investment panel of CEE Property Forum 2021, Property Forum’s first real-life event back in Vienna since 2019 which was attended by over 400 people coming from countries all over the region and beyond.
We are seeing Central European equity flexing its muscles in the property market, according to Stuart Jordan FRICS, Managing Director & Head of Investment az Savills Czech & Slovak Republics, who chaired the panel.
The 4-5% economic growth forecast for CEE countries in the coming years will improve the profile of the region and attract more institutional funds, Noah Steinberg FRICS, Chairman & CEO of WING said.
Victor Constantinescu, Managing Partner, Romania & Co-Head of Real Estate az Kinstellar, mentioned that South African capital reached the Romanian property sector through joint ventures with local players because that’s the way to go. He added that high net worth individuals in Romania choose residential as their prime place for investment.
Hungary’s favourable tax regime backs domestic investments made through financial vehicles outside the country, explained Dániel Jellinek, Founder & CEO of Indotek. He added that Indotek is active in 14 countries and has 30,000 small individual depositors who are buying the company’s funds.
Gergely Koós-Hutás, Partner at Adventum Investment Fund Management Ltd., said that 50% of the money for a new fund launched at the end of 2020 came from Western Europe, mainly the UK and Germany.
Pavel Streblov MRICS, Business Director CRE at Penta Real Estate, said that whenever they had competing projects between Poland and the Czech Republic it was always easier to invest in the latter because it was difficult to justify some of the pricing on the Polish market.
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