Factors Affecting the Value of Real Estate (Part 1)
CE Invest Group Managing Property Investments in Slovakia
There are thousands of foreign investors who own rental property in Central Eastern Europe, hoping for better economic times. Looking back at the past half a year, I can confidently say the situation is not devastating in Slovakia or Hungary. Although it has become difficult (not impossible) to sell property, the apartments of investors are rented, producing an income. The Hungarian currency has strengthened again, so received rents are relatively higher than 3-6 months ago. What about the value of real estate?
The following points summarize the main factors affecting the value of investment property, with emphasis on the Hungarian and Slovak markets.
1. Your property occupies a unique spot on the Earth’s surface, “Location, location, location…” The historically and culturally rich capital cities of Central Europe are definitely a matchless choice, demand will surely rise for a stake in these special places of interest and current economic expansion. The anticipated economic growth of the Eastern Bloc is greater than the West.
2. To most buyers, apartments will always be emotional possessions, therefore values are often distorted; one can never rely on statistics when buying or selling.
TIP: A clever renovation project can dramatically increase the perceived value of the property.
