Demand solid in resilient CEE but could slow if war persists

The CEE real estate markets have so far seen little in the way of a slowdown resulting from the invasion of Ukraine, but if the war in Ukraine continues adverse economic effects will begin to appear, said Victor Constantinescu, managing partner, Romania and co-head of real estate at international law firm Kinstellar.

“Generally speaking, the sentiment is largely one of ‘wait and see’ among many investors,” he told Real Asset Insight’s Richard Betts while attending the recent CEE Summit organised by Real Asset Media and Poland Today.

“People are obviously concerned about the effects of the war and it’s knock-on effects, particularly on bank financing, and other inflationary pressures,” he added. “But generally speaking, the market continues to be very strong and those who are investing in CEE continue to invest and local capital is continuing to flex its muscles as well.”

Logistics remains the star sector, but asset classes like PRS (private rented sector) and others are also significant in Poland and in Czech Republic. “Perhaps surprisingly, offices are doing well as well as more pandemic-proof assets such as retail parks, which continue to trade at very high volumes,” Constantinescu added.