ARTICLES LABELLED WITH TAG war

After the beginning of the Russian invasion of Ukraine, real estate developers in Kyiv stopped working on construction sites and focused on defence processes. They handed over their equipment and materials for the construction of protective structures, created volunteer organizations, etc. By now, after the de-occupation of the settlements around the capital and the relative stabilization of the situation in Kyiv, some developers began to resume work on construction sites. Iryna Nastych summarised the situation in an article prepared by the Ukrainian Real Estate Club for Property Forum.

David Ebbrell, CEO and Mirta Ceranac Poljak, Managing Director for Croatia at M7 Real Estate talked to Property Forum at MIPIM about investment strategy, economic challenges and opportunities for sustainable growth.

According to Yasen Georgiev from EPI, EECFA Bulgaria, like elsewhere in the EECFA countries that are not directly impacted by the war in Ukraine, the construction market in Bulgaria entered a period of an increasing unpredictability. What stands behind is an interplay between domestic and external factors.

The war launched by Russia on February 24th is still going on in Ukraine. Infrastructure facilities are being damaged every day. The cost of damages that experts share changes daily. According to the Centre for Economic Policy Research, the total expenses for reconstruction will range from $220 billion to $540 billion, writes Anna Nestulia, Principal at Invest in Projects for Property Forum.

The entire development cost of logistics projects is increasing substantially and it will continue to do so, says Robert Dobrzycki, CEO & Co-Owner of Panattoni. He talked to Property Forum at MIPIM about uncertainties and the dynamic growth of the logistics sector in CEE.

Geopolitical tensions hurt demand for commercial property, appetite for property development, financing conditions and property investment decisions over the short run, the Hungarian National Bank (MNB) reports.

Serbia’s construction market was booming when the economic and geopolitical situation changed, so the complicating circumstances in the world are stifling the potential growth and slowing down the ongoing recovery. Inflationary pressures have exploded with the start of the war in Ukraine and the effects of the current crisis are still unforeseeable, writes Dejan Krajinović from Beobuild Core d.o.o. for EECFA Serbia.

The latest report from research firm Spectis indicates that following a strong start to the year, the outlook for the construction sector over the coming months of 2022 is now less bright. The expected slowdown can be indirectly caused by the ongoing war in Ukraine, which only aggravates the problems the market has been facing previously, such as soaring prices of raw materials, building materials, and energy sources or the shortage of labour.

For Croatia, as for other EECFA countries, the Russian invasion of Ukraine has been both a supply shock and a demand shock. And many of the elements of these shocks are the same for Croatia as for other EECFA countries. On the supply side, energy costs are rising as are the costs of construction materials and of construction finance. Supply chains and labour markets have also been disrupted. On the demand side, inflation has cut into consumers’ real disposable income, consumer confidence has been shaken as a result and finance for real estate purchases has become more expensive, says Michael Glazer, SEE Regional Advisor at EECFA Croatia.

Romania’s trade relations with Ukraine, Russia and Belarus are limited, but the country has been importing raw materials from these countries that are used in the local construction market, according to an analysis by the Eastern European Construction Forecasting Association (EECFA).