CEE’s international capital dependency diminishes

The significance of domestic capital has increased significantly in CEE during the last five years according to Kevin Turpin, regional director of capital markets CEE, Colliers.

Much originates in Czech Republic and Hungary but there have been smaller pockets from Slovakia from Romania and some from Poland, Turpin explained.

“Over the last five years that’s been responsible for 30% of all transactions, which is very strong and it’s a great signal to the market that there is liquidity there,” he said.

This means that when international capital dries up, there are still buyers looking for opportunities.

However, although Czech and Hungarian buyers invest in their own markets and have been responsible for much of the investment in those countries, international capital is responsible for nearly 100% of the Polish market.

“So when international capital slows down again there is some concern there, but we’re really happy to say that a lot of that domestic capital is picking up and investing cross-border within CEE, so we’re seeing quite a lot of Czech and Hungarian Capital going into Poland as well,” Turpin said.

Please click on the video above to watch the full interview or listen to the podcast below.