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Deloitte Real Estate Confidence Survey for Central Europe

The views and sentiments relating to the real estate market held by developers, investors and market advisers

 

This year’s release was delayed by the outbreak of Russian aggression against Ukraine. We have conducted two rounds of the survey, in January 2022 (Q1 2022) and in April 2022 (Q2 2022), allowing us to compare the views and opinions of market participants at both moments, and to focus on the impact of ongoing armed conflict on Central Europe’s real estate and investment market. This report presents the views and sentiments relating to the real estate market held by developers, investors and market advisers for the coming months.

The 2022 Deloitte Real Estate Confidence Survey shows that market professionals have regained their confidence after the COVID-19 pandemic. Nevertheless, Russian aggression against Ukraine has again brought more uncertainty to the market. Due to the outbreak of war, a significant share of our respondents has changed their strategy for 2022, with the majority believing that ongoing armed conflict will have mid- and long-term effects on the CE economy. The same pattern was observed in 2022 after the pandemic outbreak.

What views and market sentiments related to real estate market have the
investors and developers held? To what extent has the Russian invasion changed the strategy of real estate companies? What are the biggest challenges?

We encourage you to read the fourth edition of the Deloitte Real Estate Confidence Survey for Central Europe report.

Key findings:

  • The 2022 Deloitte Real Estate Confidence Survey shows that market professionals have regained their confidence after the COVID-19 pandemic. Nevertheless, Russian aggression against Ukraine has again brought more uncertainty to the market. Due to the outbreak of war, a significant share of our respondents has changed their strategy for 2022, with the majority believing that ongoing armed conflict will have mid- and long-term effects on the CE economy. The same pattern was observed in 2022 after the pandemic outbreak.

  • While in previous editions of our survey, developers told us project commercialisation, project financing and the availability of investment plots were the most challenging issues they faced, an increase in construction costs may become the biggest concern for the construction sector in 2022. The vast majority of respondents anticipate a decrease in the profitability of their developments.

  • At the beginning of 2022, most investors expected stabilisation of effectiveness across their investments. Due to the Russian invasion of Ukraine, market sentiment has worsened. Currently, nearly 30% of investors anticipate freezing their activities in the months ahead.

  • We can expect a revival of retail, with increasing numbers of developers and investors declaring their intention to focus on this sector in the months ahead

     

Methodology

 

The Deloitte Real Estate Confidence Survey for Central Europe is a review of the sentiments held by real-estate professionals across our region. In it, we ask three groups of stakeholders – developers, investors and market advisers – for their opinions on a range of issues.

The research consists of two sections. The first focuses on respondents’ views on various aspects of the general economic conditions that they expect to exist in the markets where they primarily operate as well as across Central Europe in the year ahead. The second section covers each participant’s individual business perspectives on a range of issues.

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