Central Europe Real Estate Confidence Survey

Finding new land is the biggest challenge faced by developers in the Region

The real estate market in Central Europe is growing steadily. The first edition of the Deloitte Real Estate Confidence Survey, carried out by Deloitte in partnership with Central & Eastern European Real Estate Quality Awards (CEEQA), shows that top CE real estate market players are optimistic about the future. Most practitioners expect little in the way of changed market conditions and activity levels. Nearly two thirds of respondents expect the economic climate to remain favourable and 78% believe that the availability of credit financing in the next six months will remain unchanged. Nearly 40% expect new investment opportunities to occur this year. Developers focus, in particular, on office space and private dormitories.

The key findings:

  • Nearly two-thirds of respondents expect market conditions and activity levels to remain stable between now and the end of 2019 
  • Most expect lending conditions to remain unchanged, with the proportions anticipating them to worsen or improve both standing at 11% 
  • The great majority (84%) expect no major changes in the CE tax environment this year 
  • Slightly more respondents (38%) expect an increase in new investment opportunities, with 32% anticipating a reduction 
  • The office sector will attract most attention during the rest of 2019, and 62% of respondents expect yields to remain unchanged
  • Some investors are clearly planning for the years ahead, with 41% intending to focus on portfolio management and 14% on raising new funds 
  • Acquiring land for development is the biggest challenge for 63% of the developers in our survey, while 19% cited the cost of materials and construction work 
  • 25% of respondents are focusing on the office sector in 2019, followed by retail (13%) and logistics (6%) 
  • The growing maturity of the CE real estate market is indicated by increased interest in student housing, selected as a niche that can deliver higher returns by 6% of our respondents

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