Sacher’s bitter cake

The official summary of the Real Vienna fair begins by speaking of “realistic optimism” being felt by the real estate industry. However, was there actually any genuine sense of cheer to be found anywhere and 
at any point during the conference?

The fourth meeting of this international fair focused on the countries of Central and Eastern and South-Eastern Europe, attracting 242 exhibitors – down from the 327 who exhibited in 2008 – with the number of visitors also falling to around 7,000 from more than 9,800 a year earlier. The event, as usual, was dominated by the Austrians and Germans, which might be why it proceeded so calmly. Operators from the CEE region appeared to smile more often than others – probably because the crisis arrived here later. Voices were heard at the fair claiming that this year’s meeting differed from that of 2008, which was held during what was still an investment and development boom. Although we are still in a real estate industry in which observations have to be made over a perspective of many years, it was clear that much had changed this year to a tangible extent. There is always a positive side to even the worst events, with the interest expressed by the participants in the final days of May in Vienna seeming at least more honest and the discussions held more down to earth.

One can only hope that they will bear fruit in the form of new contracts, since what the market – in a more than six-month state of deep freeze – really needs is an impulse to get moving. Perhaps we shall meet in a better mood next year, between May 18th and 20th.  (And)

Vienna memories

Anna Malarczyk, business development manager, Echo Investment

Real Vienna turned out to be a great opportunity to meet up with all the representatives of our retail tenants based in Austria and Germany in one place and at one time. I had many discussions about the market situation in the CEE region and the expansion strategies of retail chains. There was no whinging – people were just looking at future possibilities, finding in the crisis situation opportunities for further growth. I could also see a number of representatives of the bank sector, deep in discussions, which everybody hopes will lead to credit deals being signed soon.

Dr Rolf Grossmayer, board member of subsidiary companies of UBM Realitätenentwicklung

New potential international clients have approached us who are interested in locating the headquarters of their operations in our Poleczki Business Park complex, now under construction in Warsaw. It was obvious that the number of visitors to Real Vienna was much lower than in previous years, but the quality of presentations was even higher. Therefore this fair also reflects a general trend for moving from growth-based development to quality-based development.

Magdalena Tusińska, manager of the Radom Office of Urban Growth Strategy and Investment Implementation

The Real Vienna fair was an excellent place to promote Radom city’s economic potential, investment attraction and investment offers. Exhibitors from more than 20 countries, regions and cities from around the world were present at the fair. This year, apart from more than 100 Austrian businesses, companies from Poland and the Czech Republic seemed to be everywhere. This seems proof that our region of Europe is coping surpisingly well with the current hard times, while the great interest in our stands from investors is evidence of Poland’s continuing attraction. We are glad that representatives of the Radom investor service centre had talks with many interested parties.

Jarosław Wnuk, director and head of investment, King Sturge Poland

Real Vienna 2009 showed that the real estate investment market has still not recovered. The attendance was down in comparison to the previous year; however, this was to be expected and was similar to the MIPIM fair. Nevertheless, over 240 exhibitors were participating and sharing views on the market. Investors’ appetite for the CEE region is still very limited and they are focusing on very clearly specified opportunities (e.g. small/medium-sized office buildings in the centre of capital cities). A few positive signs emerged from Real Vienna this year. These included: 1. banks are less reluctant to provide loans; 2. vendors’ expectations are adjusting slowly towards the new market reality; and 3. a few German funds have decided or are seriously considering opening their frozen funds. All these factors combined to provide some positive ideas for the coming autumn.  

Colin Guerrini, managing director of EHL Real Estate Poland (formely CPB Polska)

Real Vienna continues to provide the ideal forum for business meetings, where you are able to meet and share ideas and thoughts with your peers active in the CEE markets. The event reflected the belief that this and next year will be a challenging time for all of us in the real estate sector, and that some countries will experience greater difficulties than others. It was clear that Poland is seen by many investors as being one of the few bright spots on the map, where opportunities still exist – both in developments and acquisitions. Real Vienna is simply a winner – as can be judged from both the quality of the conferences and the numbers of decision makers and drivers of the real estate market who attended. I have already booked my place for next year.