Opportunity continues to knock in the New Europe as pioneering investors and developers are moving outside the region's capitals to tap new resources With GDP growing at twice the rate of its Western European neighbours, the general market sentiment in Central and Eastern Europe (CEE) is one of optimism. Add EU entry to the mix, with Bulgaria and Romania becoming the most recent members this year, and the outlook seems bright indeed. Yet the growth spurt does raise the question of when it will slow or stop.
Opportunity continues to knock in the New Europe as pioneering investors and developers are moving outside the region's capitals to tap new resources With GDP growing at twice the rate of its Western European neighbours, the general market sentiment in Central and Eastern Europe (CEE) is one of optimism. Add EU entry to the mix, with Bulgaria and Romania becoming the most recent members this year, and the outlook seems bright indeed. Yet the growth spurt does raise the question of when it will slow or stop.
With the exception of Russia and, to a lesser degree, Poland, the CEE is made up of small countries. How many new offices can be built in Prague or Tallinn? And how many shopping centres can be built around Warsaw or Budapest before the market becomes oversaturated? ‘I don’t see this as a bubble in Central Europe,’ says Roger Dunlop, CEO of Central and Eastern Europe at Quinlan Private Golub (QPG). 'I see this (economic growth) as well-underwritten by resources, by manufacturing and access into the EU marketplace. This is catch-up.'
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