International construction and property funds are becoming more interested in Southeast European countries, the Internet edition of the Financial Times reported. The reason is higher investment return in these countries, compared to similar deals in Central and Western Europe. In recent months, investment return in Britain reached one of its lowest levels, 3.6 per cent. Because of the more favourable market climate, various funds have decided to relocate their activities to Southeastern Europe. According to the Financial Times, the investment return in Prague and Warsaw exceeds 7.5 per cent.
A number of well-known Western companies, including Schroders, Insight Investment, Prudential, Henderson and Grosvenor already started their business operation in Southeastern Europe. Investors, however, believe that soon it would be difficult to realise huge profits because of the intense construction and competition. This makes investors look further east, where profits are higher. Countries that offer the best conditions for now, include prospective EU members like Romania and Bulgaria. More companies are also becoming interested in specialised construction, such as holiday villages along Bulgaria's Black Sea coast, Dnevnik reported.