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01. Dezember 2011 
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Strong German links underpin CEE real estate markets
The recent volatility in some Central European currency markets and concerns over credit availability stemming from Western European banks cutting lending due to the eurozone crisis, should not undermine confidence in the long term prospects for the region’s property markets, due to close links with Germany - Europe’s strongest economy, real estate investor Tristan Capital says.
Daniel Harris, Managing Director for Central Europe at Tristan Capital said: “Short term markets volatility is making life a little more difficult for people financing real estate assets in Central Europe, but that hasn’t necessarily diminished the attraction of the major economies in the region in the long run. Many of these countries have strong well established trading links with large European corporates located in Germany, which should serve them well once the crisis has passed.” He was speaking at the Global Real Estate Institute “New Europe” Conference held in London on Thursday.
Daniel Harris concluded: “The current currency weakness and uncertainty in some Central European markets may actually play to the advantage of firms with capital. A lower currency basis makes the underlying economy more competitive, reduces competition for assets and may lead banks to offload real estate that they might otherwise have held on their balance sheets.”
Daniel Harris, Managing Director for Central Europe at Tristan Capital said: “Short term markets volatility is making life a little more difficult for people financing real estate assets in Central Europe, but that hasn’t necessarily diminished the attraction of the major economies in the region in the long run. Many of these countries have strong well established trading links with large European corporates located in Germany, which should serve them well once the crisis has passed.” He was speaking at the Global Real Estate Institute “New Europe” Conference held in London on Thursday.
Daniel Harris concluded: “The current currency weakness and uncertainty in some Central European markets may actually play to the advantage of firms with capital. A lower currency basis makes the underlying economy more competitive, reduces competition for assets and may lead banks to offload real estate that they might otherwise have held on their balance sheets.”
