Tips for real estate investors in CEE

12. April 2021 | Reading Time: 3 Min

Immobilien Steuern Umsatzsteuer Steuerberatung EU TPA

Current tips for real estate investors

Real Estate Investment 2021: The annual report of CBRE & TPA offers many current tips for real estate investors in Austria, Germany and CEE.

Important questions about real estate investments

  • How can investment opportunities in Germany, Austria, CEE and SEE be described in 2021?
  • What tax investment incentives are being offered in the various countries?
  • What are the key issues when it comes to real estate investments?
  • How high are the operating costs in the different asset categories?
  • What yields can be expected from country to country?

The tax advisory company TPA and CBRE, which is the largest of its kind worldwide for commercial real estate services, is offering an assessment of local real estate markets in the brand new “Real Estate Investment 2021” brochure, which is available for the fourth time in a row. This is intended to provide institutional investors with a short, practice-oriented overview for possible investment decisions. The brochure can also serve as a source of ideas about how to deal with countries that to date have not (yet) been part of the investment strategy. Some smaller countries in the CEE region in particular still offer interesting yields and opportunities.

Identify trends: How are the real estate investment markets developing?

Despite the Corona crisis, the real estate investment markets have developed relatively steadily. “One factor that carries the most weight here is the very low interest rate level due to which other risk-averse investment options are simply less profitable”, says Andreas Ridder, Managing Director CBRE Austria & CEE. Nonetheless, the volumes in the CEE region have also declined. In total approx. €14 billion was invested in 2020, which in concrete terms means a decrease of about 26% in comparison with the year before. As in other European countries clear differences between the various asset categories were also discernible in the CEE region. The residential and logistics sectors were among the clear winners in the crisis, whereas the hotel and retail industries faced great challenges.

Key tips & key data from 13 countries

“Real Estate Investment 2021” contains an outline of the most important key data and information for real estate investors in 13 countries. The topics range from economic and demographic framework conditions to the current taxation of real estate transactions in Albania, Austria, Bulgaria, Croatia, the Czech Republic, Germany, Hungary, Montenegro, Poland, Romania, Serbia, Slovakia, and Slovenia.

COVID-19: The possible effects on the international economy also remain a challenge for real estate investors in 2021. The current tax relief measures regarding COVID-19 have likewise been taken into consideration.

How to make the right investment decision!

Gerald Kerbl, real estate expert and TPA Partner, is convinced that, ”In order to also be able to make the correct investment decisions in the current, very challenging times, it is essential to be aware not only of the local real estate market in as much detail as possible, but also of the tax and/or legal framework conditions”. The “Real Estate Investment 2021” report can assist you with this.

Ridder comments, “We have however also established that differences, some of them significant, have emerged between the various countries. In Croatia, for example, the retail trade was the strongest asset category, and in Hungary the hotel sector was the second strongest asset category despite the crisis in the tourist industry. Residential transactions were not registered there at all. Therefore, in order to be able to make the right investment decisions, the correct advice is more important than ever especially in times of crisis”.

 

Want more tips for real estate investments?

Order your digital copy of Real Estate Investment 2021 here!

 

 

TPA: Facts & Figures

More details on the TPA Group:  www.tpa-group.com

CBRE

More details on the CBRE Group www.cbre.com or www.cbre.at