The real estate business in Central and Eastern Europe
24 October 2009
18. 08. 2008 Ákos Szederjei
Generic trends in the region
• Continous growth
• Morgtage market increasing
• New markets - higher risk,
more opportunities
• Old markets – lower risk,
consolidated market
Czech Republic
• Stable growth • Middle class projects
• Strong industrial real estate development
• Solid, long term growth expected
Slovakia
• Stable growth • Increase in FDI in 2007
• Cheap labour, liberal labour code
• In some cases title determination unclear
Slovenia
• Mortgage system „under“ development • Past approach to delayed developments
• Loans secured by mortgages are used
Hungary
• Stable growth • Investement activity remains strong
Romania
• Explosive growth after EU accession • Robust growth of the mortgage sector
• High amount of FDI moving in
Bulgaria
• Emerging market • Criminality is still high
• property rights is subject to difficulties
Baltic States
• Low and flat tax system • Overheating economy
• Over inflated real estate prices
Product placement
Products are based on the combintation of:
• Infrastructure (low time, high efficiency)
• Real-estate know-how • Mortgage know-how
Recommendations
• Low volume, high value • Romania is the definite player for 2008 • The „old” CEE EU states will expand • Potential pitfall: increase of debts
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