2020 has seen investors in prime real estate looking eastward in Europe for new opportunities. Popular cities like Prague, Warsaw and Budapest are showing strong signs of growth. This potential for expansion has been enticing buyers who are willing to take a small risk, especially in emerging prime markets like Hungary, where a degree of uncertainty has been injected into the political climate of the place.
For example, Budapest has been found to be the fastest growing prices for houses in the world as per statistics from 2019. , and the growth rate in the year being 24 percent. It is expected to rise to 30 percent by the end of 2020 due to low mortgage rates, high employment rates and overall economic growth. In the 2020 report published by PricewaterhouseCooper’s Emerging Trends, investors found themselves being drawn towards Poland’s capital Warsaw, which has relative political stability, a younger population and a strong flourishing business sector. It is expected that luxury residential development will be the next big thing in the following year,as it has seen significant promise in the present year.
Real estate analysis in Bratislava and Prague expect the luxury sector to pick up pretty fast, with the sale of more affordable properties slowing down. In the coming year, the growth in prices has led to mainstream segment apartments losing buyers and being replaced by premium segment apartments. This change to the luxury sector may be due to the increase in the number of high networth people domestically, or due to a robust economy, or possibly both.
There are certain rules that restrict investors in the real estate sector though. Policies of economic nationalism in Hungary and Poland impose strict restrictions on investments from other countries. Another international factor to be considered is the effect of economic sanctions by the United States of America on the condition for foreign investment in Russia.
Healthy economies like Bratislavia and Prague are creating new wealth and rising demand for prime real estate from residents.
Hungary’s capital Budapest has a robust flourishing economy, helping it claim the title of fastest growing housing market globally.
These emerging real estate markets are home to a rising number of high end inventory, and in 2020, several Eastern European cities have seen the debut of new luxury developments.
A large number of high rise luxury flats and apartments are being built in Warsaw in recent years. This year in 2020, prime investors in the real estate business are anticipating the completion of a renovation of a 19th century residence complex, which used to be the residence of a large number of famous Polish people into a luxury apartment complex. The structure is called the Foksal 13/15.