Given that property cycles exist, where should the investment capital be directed today?

Many factors point towards Central Europe as being a key area for property investment at the moment. Structural reform in the transitional economies of Central Europe, especially those which have, or are predicted to join the EU, act favourably for the growth potential of those economies.

Increasing openness to globalisation generally enriches economies; the liberalisation of markets, such as the finance markets, empower individuals to purchase assets using financial instruments.

In Poland, for example, mortgages are less than five years old. Monetary union along with the economic and political reforms required for EU membership all provide a more attractive climate for big business to move in, creating jobs and wealth. This additional wealth finds its way around the economy into property, as people wish to raise their standards of living.

Furthermore, with economic growth comes technological change, which improves efficiency, which essentially means getting the most out of the resources used, the result of which is an economy that can create more wealth in shorter time periods.

These processes are often combined with pressure on governments to privatise assets which provide further investment opportunities, creating more jobs and wealth. In short, Validus assesses Central Europe as an excellent investment target.

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view disclaimerPlease note: As with all investment property purchases, you are advised to take proper financial and legal advice at all stages. Investment values can decrease as well as increase. The content of this website is for informational purposes only, and readers are advised to speak to qualified legal experts and financial planners before taking any action. The information, tables, projections, and estimations provided by Validus are for indication only and do not represent factual information unless otherwise stated. The information is supplied without any guarantees whatsoever.