Starting from 2013, the real estate development market has been experiencing a gradual recovery. Favourable terms of credit, market support programmes, and the continuous demand for new housing have propelled the development business, giving rise to new residential and commercial construction projects. Programmes aimed at invigorating this sector have been prepared in most EU member states. In Poland, this is the ‘Housing for the young’ programme. The development market in Poland has also become more brisk, as evidenced by the strong sales reported by all sectors of the market in the 3rd quarter of 2014. In the wake of the recovery, the supply of new and used housing has increased. The ‘Housing for the young’ programme, aimed at young people who are planning to purchase housing in the primary market, has contributed to the market revival. Unfortunately, the programme has done little to support the secondary market. Due to the fact that banks have relaxed loan eligibility requirements while offering low credit rates corresponding to the low interest rates set by the Money Policy Council, the demand for mortgage loans has been on the steep rise. Correspondingly, the effective demand for new housing has also increased. The situation in most other EU countries is similar to that in Poland. In view of these facts, the management of STARHEDGE sees this sector of the economy as offering good investment opportunities, characterized by low risk and a satisfactory rate of return.
The company is planning to expand investments in development projects abroad in consideration of the fact that, in certain EU markets, the development industry offers some of the safest investment opportunities with a stable rate of return. The development project in Bulgaria, which is currently nearing completion, has proved a decisive success, so the Company Board is looking into further opportunities of investing in that area.