While optimistic developers and real estate consultants in the CEE region have long been talking about having turned the corner, the view from the financing side is less upbeat. “The crisis will last another two to three years,” head of corporate banking Central & Eastern Europe at Eurohypo Markus Leininger tells Czech Position in an interview.
There is no question that it has become more difficult in recent years to secure financing for real estate projects, perhaps especially so in the emerging markets of Central and Eastern Europe. While developers are usually quick to complain about the financing terms being offered by banks, lenders have their own obstacles to contend with when choosing to reinvest in property.
The financing agreement signed by UniCredit Bank Czech Republic and Komerční banka for a shopping center in Opava and Deutsche Pfandbriefbank’s €181 million refinancing of a Central European portfolio might be indicators of much needed new money entering the market. Nevertheless, the situation for German banks remains clouded due to market uncertainty and regulatory issues.