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Munich Expo 2007 - what will it tell us about residential investment strategies?

Here we are in Munich Expo 2007 – one of the biggest commercial property events of the year, with a focus on central Eastern Europe and apparently 20,000 city locations covered with exhibitors from 40 different countries.

So, what are we here for?

Well, despite Property Secrets's interest in residential property, it is worth knowing and understanding what is happening in the commercial property world as it will have a big impact on property values and where we aim to invest.

Put it another way, it is about following the money! Where today’s office block goes, tomorrow’s jobs will be created and that’s where we’ll see growing middle class populations who want to buy or rent modern apartments and homes.

For us, the most interesting aspect of this show is the structure of the forums which are mainly an examination of CEE property markets.

Often, the most interesting thing is not what is said from the platform – but just the size of the interest from the audience.

In 2006 we saw interest in the German real estate market switch from foreign investors to local investors (spotted by the reduction in the number of people in the audience who need the translation headsets).

We’re expecting to pick more unusual insights and hints about the trends in our key emerging markets and we’ve also got the brief to look outside CEE to see if we really should be looking at any other markets – Qatar for instance? Or even Malaysia?

And of course, who has the biggest stand? Will it be Warsaw?

Watch this space over the next couple of hours….and the next two days.

Cheers
Neil

POSTED BY NEIL LEWIS ON MON 8TH OCTOBER AT 15:42 GMT

TAGS: Warsaw Property, Real Estate Investment Strategies, Qatar Property, Property Secrets, Malaysia Property

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MUNICH EXPO 2007 - WHAT WILL IT TELL US ABOUT RESIDENTIAL INVESTMENT STRATEGIES?

Lots to report from the first day here at Expo Real in Munich and an insight discussion will follow soon. Meanwhile, here's my Quote of The Day: 'Things that took several years to happen in Poland take just months in Romania. 'In terms of market expansion, in just one year in Romania, we've done what it took five years to do in Poland. This is a much more dynamic market.' Claudius Ferentz, Head of the Romanian Branch of Investkredit Bank AG, Vienna

POSTED BY ROBIN BOWMAN ON MON 8TH OCTOBER AT 16:04

DYNAMISM OF BUCHAREST

Hi Robin Yep, I agree - this is a great indicator of just how dynamic the Bucharest and Romanian markets are. Clearly, this is one of the fastest moving markets anywhere in the world at the moment. I'm still absorbing the quotes "land prices have doubled in 12 months" and "construction costs have risen 40%" ... the implication for this is that developers will start to tread a little more cautiously - as they are very unsure of the final profit margins ... and that will lead to a slow down in development - it will still grow, but perhaps it will grow at a more sustainable pace... ... the good news for investors is that there is no let in demand for residential investment and that this prices increases for the developers will mean that there is less supply brough to the market. That means, less competition for residential developments and therefore higher prices... Good news for residential investors - even if it is at the expense of some developers. Cheers Neil

POSTED BY NEIL LEWIS ON MON 8TH OCTOBER AT 16:10

BUCHAREST

Neil - That is good news for investors indeed and in line with what you advised around July. I bought in the Citadella development and I have been noticing quite a lot of developments coming onto the market which made me concerned about a risk of over supply if the pace od development continues. However your comments about land prices and construction costs would indicate that there is not a high risk of oversupply depressing the market.

POSTED BY BRETT S ON MON 8TH OCTOBER AT 19:20

SUPPLY IN BUCHAREST

Hi Brett It is pretty tough to call this one - but my gut feeling is that the total development in Bucharest is still very small compared to the overall size of the city, its density and the increase in demand/population. My instincts tells me this city could survive many many more developments before demand is dampened... ... and therefore, any slowing down of development is only going to accelerate the price growth even further... Cheers Neil

POSTED BY NEIL LEWIS ON MON 8TH OCTOBER AT 22:40

GERMANY

Hello Neil From what you've seen so far in the expo, what are the latest news regarding german property and the forecast regarding the german market ? Cheers Claude.

POSTED BY CLAUDE ON TUE 9TH OCTOBER AT 08:38

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Neil Lewis
Robin Bowman
Ben Greenwood
Noreen Lucey
Stanislaw Staromlynski
Brett Tudor
Panos Tsigaras

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