Coffee with Craig Show – daily CRE news covering the CEE region, Tuesday, June 6, with Winston Norman, Editor and Chief of EuropaProperty.com.
Dramatic market turnaround will become even more visible in 2023
Real estate company RE/MAX Europe has identified some major trends expected to shape the European real estate market in the coming months. These include decreased prices and demand for properties, sales sitting on the market for longer, a growing need for rentals, and shifting buyer preferences towards smaller properties and less urban locations.
According to its newly released European Housing Insights Q1/2023 report, despite the challenges posed by the war in Ukraine, rising energy prices, increasing interest rates, growing construction costs, and environmental pressures – the market remains robust although volatile.
Michael Polzler, CEO of RE/MAX Europe, explains: “We have entered a new phase, leading to affordability issues for some potential buyers. In a volatile market, buyers and sellers must turn to real estate professionals with broad market insights and deep local knowledge for crucial guidance.”
Cavatina Group to build 10,000 rental apartments
Cavatina Group has established a company for the construction and management of a portfolio of PRS projects located in the largest cities of Poland. Cavare is the new entity that is 100 percent owned by the Cavatina Group. Over the next 5 years, Cavare plans to build 10,000 long-term rental apartments.
“The Polish institutional rental market is still young, and has significant growth potential, as evidenced by the high occupancy levels of existing projects”, says Bartłomiej Wentlandt, CEO of Cavare S.A.
Masterbuild forecasts 25 percent growth this year
General Contractor & Developer MASTERBUILD reported a 74 million RON turnover for 2022 and forecasts a 25 percent increase this year. The company has a pipeline of new construction works of almost 200,000 sqm.
58 percent of last year’s demand came from the retail sector (retail parks, shopping centres), 15 percent from the logistics segment (logistics parks and industrial or manufacturing facilities) and 27 percent from the public sector.
“The construction market is still going through an unstable period, but investor appetite remains high in Romania. Economic forecasts indicate 2.5 percent growth in 2023 and 3 percent in 2024 and development is certain to continue in the context of deglobalization trends such as nearshoring and the need for Romania to strengthen its position in the region,” says Ștefan Ferdinand Vayna, CEO of MASTERBUILD.
Marriott to open new luxury hotel at Lake Balaton
The Le Meridian brand will offer 102 rooms and is scheduled to be open in 2025. This will be Marriott’s first Hungarian hotel outside Budapest. The size of the investment is 22.5 billion Hungarian forints and also consists of a refurbishment and the extension of the port.
Spokesperson Richárd Szepesi announced some details about the project which is to be developed in a tourist destination on the northern shores of Lake Balaton. He unveiled that the new hotel will offer 102 rooms, 24 luxury apartments and 4 restaurants.
