ARTICLES LABELLED WITH TAG economy

The German federal government plans to set up an economic stabilization fund (Wirtschaftsstabilisierungsfonds, WSF) to prevent companies from going bankrupting during the coronavirus crisis, according to the new draft bill of the finance minister.

In our interconnected world, significant disruptions underscore the need for resilient supply chains. The risks posed by COVID-19 to economic growth would likewise affect real estate in the near term; on both counts, the magnitude is yet unknown. Still, structural trends point to resiliency for logistics real estate through this period and beyond, shaping both the fundamental and investment landscape, according to a new report by Prologis Research.

Property Forum collected the latest measures taken in CEE countries to mitigate the negative effects of the coronavirus outbreak.

Property Forum provides a comprehensive summary of the most important coronavirus-related measures that have been introduced in CEE countries. All of them have implemented a number of restrictive measures to slow down the spread of the virus and several governments have announced plans to help companies hit hardest by the coronavirus crisis and to stimulate the economy.

According to Colliers International’s latest “FDI into CEE infographic”, high numbers of Global Fortune 500 companies in the CEE-6 are being largely driven from Automotive, Industrials, Food, Beverages & Tobacco, Telecom & Media and Transportation sectors. Whilst Poland is the biggest economy, the ratio of the Fortune Global 500 companies present versus population size is much higher in Slovakia, Hungary and the Czech Republic.

Europe’s commercial property market is enjoying a favourable operating environment supporting its credit quality but risks are increasing. Rising interest rates and slowing economic growth could dampen future investor demand, according to Moody’s latest report.

Colliers International sees the most important macro indicator for CEE in 2019, Eurozone interest rates, flat-lining at zero. This should stem some of the potential angst over tightening credit conditions, keep liquidity high, buyers interested and help pricing to plateau. Colliers International foresees selective compression in capital city prime office yields and still like the logistics sector. Absent a Eurozone financial crisis, funding from lenders should remain a support. Colliers International published its latest CEE report.

In Greek mythology, Icarus flew too near to the sun, melting the wax on his wings and he plunged into the sea. According to Colliers International’s new research, this might be a correct analogy for the current state of the construction markets in CEE.

About 10 years ago, Lehman Brothers’ bankruptcy would mark the peak of the global financial crisis and would be followed by a deep recession in several parts of the world, including Romania. However, Romania has come a long way in the last decade, with the economy seeing some radical transformations, as well as in real estate; the real estate consultancy company Colliers International Romania sees the next 10 years offering an attractive risk/reward profile.

Despite being late in its cycle, the global real estate market is benefiting from strong returns for investors and a positive global economic outlook, according to Emerging Trends in Real Estate – The Global Outlook for 2018, an annual forecast of global real estate investor sentiment published jointly by PwC and the Urban Land Institute (ULI). The report notes that in this highly competitive, late-cycle property market, the real estate industry must embrace technology, new business models, and the concept of “space as a service”.