The global economy is undergoing rapid and permanent change as the impact of technological advances infiltrates ever deeper into how we live, how work is done and how businesses are created and run. The basis of this is the revolution in communications between people, the rise of Big Data and the ability to share enormous volumes of information of all types and formats. Crowdfunding and new, agile start-up companies are the most visible changes but established, forward-thinking corporations aren’t far behind. Naturally, new forms of work and changing lifestyles cannot go unnoticed by the property sector.
CEDEM 2018 will provide a mix of old and new, exploring in detail how the explosion in start-ups and co-working centers are a sign of how quickly the business environment is changing. The traditional issues of supply, demand and location are still of prime importance, but offering alternatives to old investment patterns and the appetite for new, disruptive ideas can no longer be ignored.
At the same time, low-interest rates look set continue, but CEE has now run out of labor, meaning that Europeans are asking themselves how much longer the economic boom can continue. The explosion of local investment platforms continues in the former Czechoslovakia, but these platforms are mostly untested in terms of surviving market downturns. Having been born during the boom, how well have they prepared for the eventual downturn? This year’s discussions and presentations will feature the foremost players and analysts on offer from the Czech Republic and from around Europe.
IT’S COMING: Why labor shortages and rising rates mean the inflection point is near (finally)
Market commentators have been calling the top of the market for a few years now, just as economists and manufacturers have been warning that labor scarcity will strangle growth. And yet, the market keeps chugging along, with strong take-up in most sectors and high investment volumes. But with interest rates finally climbing, pressure on investment yields can’t be far behind. It all adds up to change and the coming of a new business environment.
With virtually no big malls left to build in Central Europe, the glory days of retail development are over. But there’s an entire generation of aging malls and high street locations in desperate need of updating to make them viable for a brave new era of digitized brick & mortar retail.
One of the surprising profound legacies of the financial crisis has been a profound re-thinking about traditional ways of working and investing. Not only has the Millennial generation gotten a taste for flexible work arrangements and variable office space, but they’re using social networking technology to become more entrepreneurial. Digital platforms are making it possible to use the power of the crowd to fund start-ups, and even classic real estate deals. This panel will explore the exciting ways these trends are having a major impact on Old School real estate in CEE.
The emergence of a new class of local investors, driven by the growing wealth of Central Europeans, means the old days of Western European institutional funds dominating the property markets are gone forever. But what the traditional investors lose in market share, they gain in greater liquidity for their CEE holdings. This panel will explore how these new investors have managed their breakthrough during the boom, how their strategies and approach to risk differs, and how they’re likely to perform when times get tougher.
Too much money. Lack of product. Pressure to spend. We’ve heard this story before, but much has changed in the world of real estate investment since the crisis that began a decade ago. Investors, developers and banks learned many lessons from those times, leading to less aggressive financing and more selective yield compression. But will it be enough? Surely we’re nearer the end of the cycle than we are the beginning. Has the CEE region matured enough in the last ten years to withstand the inevitable tougher times, whenever they return? What’s the smart money doing?
The new technologies we keep hearing about are coming fast, and they’re all converging in logistics and the industrial property sector. Warehouses and trucks may sound old fashioned, but getting goods from A to B is about to get safer, more efficient and sustainable through the use of decentralized global Blockchain supply chains, Big Data, IOT, Big Data, and self-driving vehicles. The companies that react the quickest, and the cleverest, will have a massive advantage. But can anyone catch Amazon? And from a property perspective, what (if any) is the impact of this revolution on the value of industrial real estate?
The opening of CAMP, a public space designed to make Prague’s urban planning process more accessible to the public, marks the beginning of a new era of increased transparency and dialogue. Sophisticated developers are finding better ways to communicate their plans to the public and to public bodies. But the city’s permitting process remains rooted in stagnation and frustration. Could passage of the Metropolitan Plan improve this situation and are there realistic ways to enable investors to break free from stranglehold of bureaucracy?
V Celnici 1028/8,
110 00 Praha 1-Nové Město