More than half of the companies in the real estate market expect a reduction in activity and investment in the field against the background of uncertainty related to the development of the conflict in Ukraine, but a close share (46%) expects an increase in the average return on existing investments. this year, according to the Deloitte Real Estate Confidence Survey for Central Europe 2023, conducted in three countries of the region, namely Poland, the Czech Republic and Romania. The most optimistic players in this regard are from Romania – only 10% expect a decrease in income in the mentioned period, compared to 14% in the Czech Republic and 36% in Poland.

This year, economic activity in the region as a whole is expected to deteriorate, according to 61% of the survey participants. However, the majority of investors say they will increase their portfolio through new purchases (44%), while 39% are considering ending investment plans.

Companies considering downsizing justify their intention with more difficult access to financing (50%) or the uncertainty of the economic context. However, if immediately after the start of the war, more than 50% of participants estimated that it would have negative consequences for the regional economy in the long term, and only 34% estimated a similar impact in the medium term, at the end of last year the proportion changed (58% expect that the consequences will persist in in the medium term, and only 31% in the long term).

“The research shows that the Romanian market is closely related to the region of Central and Eastern Europe with certain features. For example, local market participants are more skeptical about the general development of activities this year, but 90% expect that the return on existing investments will remain at the level of last year or increase. In addition, Romanians are less pessimistic than other participants about the national economic climate, but they are additionally worried about the prospect of tax increases in this sector, given the already announced measures in this direction, but the application of which has been delayed. However, in general, in this context, the results of the study indicate a balanced position of real estate market players, characterized by prudence and consolidation of activities in the markets in which they operate,” he said. Alexandra Smedou, partner of Deloitte in Romania, head of the department of real estate consulting services.

Starting in 2019, Deloitte has been conducting a real estate trust survey in Central Europe to find out how professionals in the field perceive the development of the market in the region. Three categories of respondents participate in the survey, namely developers, investors and real estate consultants.

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