Property Forum published the results of its investment market sentiment survey at CEE Property Forum 2023 in Vienna yesterday. The results, providing an overview of market expectations across the region, are now available online.
With almost 500 respondents coming from diverse backgrounds in terms of location and field of expertise, the survey results paint a cautiously optimistic picture for investment and occupier markets in CEE.
The last few years have been characterised by a wait-and-see approach and half of respondents expect this approach to stay. Although, a significant share of them also expect investment activity to pick up during the next 12 months.
In terms of investors' favourite asset classes, we see no change compared to what market data has been showing for several years now. Logistics continues to be seen as the most attractive option, followed by residential.
Even though Poland has seen the largest drop in investment activity during the last quarters, our respondents continue to see it as the market that offers the best opportunities for investors. Poland is followed by Romania and the Balkans region.
Moving on to occupier markets, the dominance of logistics is even clearer than in investments with a whooping 71% expecting the sector to register the strongest tenant demand among asset classes.
Another key topic of the survey was inflation, naturally. Respondents are optimistic with 71% expecting inflationary concerns and interest rates to decrease during the next 12 months.
Despite this, only 26% expect financing costs to decrease and financing conditions to ease. The majority doesn't expect significant changes during the next 12 months.
In line with that, the biggest concern on respondents' minds remains inflation and high interest rates, although geopolitical risks are evidently also still a reason for concern.
Ending the survey on a more positive note, 47% expect CEE to be a better position in 12 months compared to the present day.
Finally, a bit of information on the background of responders.
We've received responses from over 20 countries with Poland, Hungary and Romania leading the way. It's interesting to compare these results to that of the question on the most attractive investment market. One thing is for certain: Hungarians believe that the best opportunities are abroad.
