Property Forum is excited to publish the results of its CEE investment market sentiment survey ahead of CEE Property Forum 2024 in Vienna. 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 an optimistic picture for investment and occupier markets in CEE.
The survey reveals that 58.8% of respondents expect a pick-up in investment activity over the next 12 months, while 35% predict a continued wait-and-see approach. Only 6.3% foresee less investment activity, indicating a generally optimistic outlook for the market.
Just like in previous years, logistics is viewed as the most promising asset class for investors at 28.7%. The rest of the list, however, paints a different picture compared to 2023 with logistics being followed by residential at 27%. The hotel (18.8%), retail (15%), and office (10%) sectors lag behind in perceived investment opportunities.
The survey highlights Poland as the leading market for investment opportunities, with more than half (52.5%) of respondents favouring it. Romania (21.3%) and the Balkans (18.8%) follow, while the Czech Republic (5%) and Hungary (2.5%) attract minimal interest. This underscores Poland's dominant appeal among investors in the region.
Moving on to occupier markets, the dominance of logistics is clear once again with a whopping 62.5% expecting the sector to register the strongest tenant demand among asset classes. It should be noted, however, that retail has managed to improve its position compared to the previous year.
A key topic of the survey - and of the past years - was inflation, naturally. Respondents are optimistic with 61.3% expecting inflationary concerns and interest rates to decrease during the next 12 months.
The picture is clearly positive when it comes to expectations regarding real estate financing. More than three-quarters of respondents expect to see lower interest rates couple with continued strict requirements by banks
The biggest concern on respondents' minds is (geo)political risk, followed by a potential economic slowdown and a potential lack of investment activity.
Continuing on the topic of politics and economic activity, we asked our respondents how they expect the second Trump presidency to impact CEE economies. The responses are quite mixed with the largest group of respondents not expecting any significant impact.
Closing the survey on a cautiously optimistic note, 43.8% expect CEE to be in a better position in 12 months compared to the present day.
