400 people from more than 25 countries gathered in Vienna for CEE Property Forum
In his keynote speech Dan Bucsa, Lead CEE Economist at Unicredit Bank AG in London presented a rather positive outlook for the future of European economies. European growth is and will be above potential with CEE economies having exceeded expectations in 2017. Bucsa also touched upon a question that is often being asked these days: are CEE residential markets getting overheated? Based on current market movements it is mostly Romania and the Czech Republic where the residential market seems to be getting overheated. Hungary also presents some symptoms of an overheated market but at the moment investors still have plenty of attractive opportunities.
CTP was represented by its CFO Radek Zeman who also confirmed the confidence about the future of the region. Radek Zeman believes that the increase in construction costs is partially the result of buildings becoming more modern and local currencies being depreciated. In the future he stated, that he expect interest rates to rise which will in turn increase rental fees. Higher rental income means that even with rising construction costs our developers will be highly profitable, he added.
CFO Radek Zeman at the CEE Property Forum conference in Vienna.