The search for secure, stable income in 2019 is paramount across Europe’s real estate industry as it navigates the prevailing late cycle market while embracing new ideas. Experts also agree on the importance of combining long-term sustainability of financial performance with a greater role in society.
On 26th November 2018, the key findings of Emerging Trends in Real Estate® Europe 2019, a report undertaken jointly by Urban Land Institute and PwC, were presented in Warsaw during the official Polish launch.
The report provides an outlook on European real estate investment and development, real estate finance and capital markets, as well as trends by property sector and geographical area. Data is based on the opinions of more than 800 internationally renowned real estate professionals, including investors, developers, lenders, agents and consultants.
The report results were presented by Lisette van Doorn, CEO of ULI Europe. She noted that, in the sector rankings, 7 out of top 10 sectors were now somewhat related to residential; this is a strong shift compared to about 5 years ago when hardly any investors invested in residential.
Professor Witold Orlowski, Chief Economic Advisor of PwC, presented an overview of the economic environment of the CEE region and noted that the CEE-4 countries (Czech Republic, Hungary, Poland, Romania) have experienced almost ceaseless growth since the crisis in 2009 (GDP increase of 18-29%). The real estate market has been growing since a couple of years ago – between 2015-17 property prices increased from 7% in Poland to 38% in Hungary (BIS data). And although there are no clear signs of the approaching crisis, every cycle must end in a slowdown.
Both presentations were followed by a panel discussion on the findings of the report. John Banka, ULI Poland Executive Committee Member, who took the role of the moderator was joined by Czarek Jarzabek (Founder & CEO of Golub GetHouse), Bozena Krawczyk (Investment Director CE of Segro), Professor Witold Orlowski (Chief Economic Advisor of PwC), Arkadiusz Rudzki (Managing Director of Skanska Property Poland) and Maximilian Mendel (Partner, Transaction Advisory of REAS).
Dorota Wysokinska-Kuzdra(Chair of ULI Poland) said: “The results indicate how much the market is changing. We see new asset classes being developed, like flexible space, co-living, co-working. Logistics is very high on the radar of investors, who are now often leveraging with investment into this type of properties their exposure in retail asset classes, all this connected with a rapid development of e-commerce. The huge interest in new asset classes like student housing, PRS or senior housing is on one hand connected with late cycle of the market, but also with the broader changes in the demographics.”
The report features a ranking of the best European cities for real estate markets. This year Lisbon has overtaken Berlin for the most attractive place to invest in while Dublin has been ranked the third best. Warsaw’s ranking has improved slightly this year, coming 21stin the rankings, and it was noted that the city has a lot of new supply, but taking into account GDP growth and demand, it is a good market.
To learn more about the report findings: