Nearly three-quarters of property professionals will increase their exposure to Central and Eastern ...
Nearly three-quarters of property professionals will increase their exposure to Central and Eastern European property over the next 24 months, according to a survey by Investec Private Bank Structured Property Finance division.
Paul Stevens, head of the structured property finance team, believes his clients are becoming more involved in the region because it has become increasingly difficult to find value in the UK property market.
The survey showed that for residential property, the country seen to have the biggest potential for capital appreciation is Croatia. Poland follows in second place and Bulgaria in third.
Around 53% ranked residential property as the sub-sector with the best prospects for capital growth, compared to retail, leisure, industrial and office.
Poland was regarded as having the best prospects for commercial property, followed by Croatia and the Czech Republic.
Those surveyed were least enthusiastic about Latvia and Lithuania in both sub-sectors. However, most considered bureaucratic issues present the greatest hurdle facing property companies in the region. Nearly half cited corruption as a problem and were also concerned by legal issues concerning the sale of property.
When asked their views of which countries outside Central and Eastern Europe had the strongest growth prospects, most respondents chose China followed by Australia and South Korea.
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