Central and Eastern Europe can look ahead to 2021 with more confidence than most European countries. The fundamentals for the region are positive and the economy is expected to bounce back from the coronavirus crisis. Transactions have not slowed down and CEE has continued to attract investments, especially in the Logistics sector.
Domestic investors have played a bigger role in the last few months, but in 2021 as travel restrictions are lifted international investors are expected to come back to the market. In the future the nearshoring trend should benefit CEE and provide opportunities for logistics investors, while longer term the increased trade flow from China and the East will pass through the region and make it even more pivotal.
Will Poland continue to power ahead of the rest of the CEE? To what extent will slowing economic growth in Germany affect the region? Investors are looking more at regional cities, especially in Poland - will this continue? Which sectors and cities are they likely to favour? CEE investors have been more active recently, improving the market's liquidity. Are they at an advantage or will they face a struggle competing with international capital as it returns after the pandemic? The residential sector has seen high demand and price increases: will this trend continue? What are the challenges? Infrastructure has much improved: is there more to be done to support investment? What about political uncertainty? Or will investors focus on the positive economic fundamentals? Will the retail sector prove more resilient in CEE than elsewhere in Europe? What are the opportunities for 2021?
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