By Alexander Smith and Christian Gutlederer
VIENNA (Reuters) - There are pockets of overheating in central European property prices, but real estate executives and bankers in the region believe continuing domestic demand and economic growth will support the wider market.
Property executives see hot areas in residential building, in some countries such as the Baltics and in touristy areas, but believe there is no bubble in sight for offices, retail property or other commercial estates.
"In commercial property, we are still slightly to substantially below western European levels," said Karl Petrikovics, chief executive of Austria's Immoeast (IMEA.VI: Quote, Profile, Research, Stock Buzz), one of continental Europe's biggest property firms.
"In residential property, there may be some overheating in certain specific areas. But in general, based on economic forecasts, I'm very optimistic for real estate," he said at the Reuters Central European Investment Summit.
Warimpex (WXFB.VI: Quote, Profile, Research, Stock Buzz), a Vienna-based developer specialized in hotels in central Europe, sees no impact of the credit crunch on real estate developers in the region.
"For existing property I don't see much risk... For the near future I don't see any negative impact (of the credit crunch)," Warimpex Chief Executive Franz Jurkowitsch told the Summit.
UK-OWNED HOLIDAY HOMES
Speakers at the event agreed those most at risk were investors, largely British, who have ploughed money into holiday developments in Black Sea coastal areas of Bulgaria and Romania, with the Baltic states also seen as a possible "bubble". Continued...
© Thomson Reuters 2008. All rights reserved.
| Global Environment | Oct 06 - 8, 2008 | Energy |
| Autos II | Sep 30 - Oct 01, 2008 | Hotels/Casinos |
| Restructuring | Sep 22 - 26, 2008 | Financial Services/Exchanges |
| Autos | Sep 15 - 17, 2008 | Autos |
| Russia Investment | Sep 08 - 9, 2008 | Country Summits |
