Real estate market is not indifferent to world events and changes in the global economy. The mood among the participants of European industry meetings, including another edition of the international fair Expo Real in Munich, which ended a few days ago, turns out to be quite good. Investors remain relatively calm. They are verifying purchasing processes, revising previous expectations as to planned transactions. The current situation on the market creates space for opportunistic investors. We can observe a significant change \u2013 entities that previously purchased only ready-made assets are now interested in new development projects. The industry strikes a balance between rising construction and investment financing and property maintenance costs, rental rates and expected yields.<\/p>\n
In the last three years, there has been plenty of investment capital on the market. Under the current conditions, however, funds find it more difficult to make investment decisions than in the previous periods of economic downturn, as it is more difficult to base analysis and valuations on factual data and objective calculations in such a volatile situation as today.<\/p>\n
However, I think that the drastic increase in the costs of obtaining capital, which the market is now facing, may mobilize some investors to be more active.<\/p>\n
Moreover, current interest rates are stimulating investments, which mean a potential increase of income from real estate as a result of indexation of rental rates. Rents are rising, both on the Warsaw market and in regional cities, where the return on investment has always been higher than in the capital.<\/p>\n