CHALLENGES OF REAL ESTATE SECTOR DEVELOPMENT IN CENTRAL EUROPEAN COUNTRIES IN THE POST-CRISIS PERIOD
CHALLENGES OF REAL ESTATE SECTOR DEVELOPMENT IN CENTRAL EUROPEAN COUNTRIES IN THE POST-CRISIS PERIOD

Author(s): Koloman Ivanička, Daniela Špirková
Subject(s): Economy, Supranational / Global Economy, Business Economy / Management
Published by: ASERS Publishing
Keywords: estate sector; economic crisis; European Union
Summary/Abstract: The real estate sector represents the important part of the economy, since it creates the preconditions for the economic development. The structural reforms and substantial foreign direct investments in Central and Eastern European countries during the transition period had enabled to develop the booming real estate markets. At first it seemed that the global economic crisis will not have any impact on the region, however at the end of 2008 the situation has reversed dramatically. Since the region is not homogenous and economic fundamentals are distinct in the particular countries, the impact of crisis and the post crisis situation varies throughout the region, which is investigated in this chapter. According to our opinion the future development of the real estate sector in CEE countries will depend on several external factors, such as the results of the introduction of the new banking regulation, the growing role of the private equity funds and the solution of Eurozone crisis. The internal factor such as the healthy public finance and further economic recovery will be important as well.

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