What is the “atmosphere” in Europe regarding Real Estate investments in Romania?
September is ready to tell us “goodbye” on Friday and October is about to start. And (for many years now) October for me means “EXPO REAL”. Right after the end of the famous “Oktober Fest”, one of the most important Real Estate fairs in Europe opens its gates. You can find out more about this event here.
Having participated at the event for many years now, I am able to make the comparison from one year to another. And the difference was quite visible in the past: From hundreds of interested investors that I met in 2007, this figure dropped to about 30 in 2008 and around… 5 in 2009 (!). 2010 was a bit better, but not by much.
A clear sign for the market’s direction during the upcoming winter
I use EXPO REAL and MIPIM in March in order to evaluate the “atmosphere” in Europe and the world regarding Real Estate investments in Romania. EXPO REAL seals the beginning of the new season after the holidays and usually helps us to see the future of the markets around Europe, the Romanian one included. This year I also expect to receive a clear sign for the direction of the market, as the world is heading towards a new recession and there are many worries for the following period.
Keep in mind that EXPO REAL is mainly a fair focused on commercial Real Estate. This is a segment where you can find more foreign investors interested in Romania (compared to the residential sector, for example). We will find out what their approach for the market is nowadays and how much they are influenced by the world crisis. (I still remember 2008 when the stock markets were collapsing during the fair and the participants’ psychology had hit rock bottom…)
What happened at MIPIM
This March I was at Cannes for MIPIM, the no.1 Real Estate conference of the world. This is also a trend setter and back then I had described to you more or less the situation and the expectations regarding Romania, plus I shared with you the question I asked the famous economist Mr. Nouriel Roubini and his positive forecast for the country.
If you want to remember what happened at MIPIM, please press here:
One more year there, promoting Romania
So far my impression is that the interest for Romania has increased compared to the past, but investors are very cautious and very few transactions will be signed compared to the number of discussions. Is this the case for this winter as well?
I will tell you next week. I will be at EXPO REAL together with 2 colleagues of mine, promoting Romania this year, as well. And, of course, I will keep you posted on everything that will happen there and all you need to know. Stay tuned!
Tomorrow, Friday – 30.09.2011: Respect your client, even if he is a gypsy…