The simplification of several regulations in the civil engineering industry will allow attracting additional investments to the real estate market of Belarus, BelTA learned from Gary Burrows, head of the real estate and shopping malls division at Dana Holdings.
As an example he mentioned the problem of getting real estate accepted for exploitation. The investor may spend a lot of money, for instance, €150 million on the project and erects a building. But until the building is registered by the Technical Inventory Bureau, the asset has no legal status and the investor is unable to sign a full-value contract with tenants specifying all the rights and liabilities. The hindrance increases the turnover time of invested capital and risks. “In my opinion it scares away investors. Due to the same reason it is impossible to get international funds involved in investment,” pointed out the representative of Dana Holdings. “We are ready to discuss the problem at any level and look for a solution together with government agencies.”
There are other aspects that need to be addressed. It is necessary to put more efforts into promotion, for instance, by advertising Belarus on foreign markets. A wise country promotion effort will bring not only investments for the economy but tourists, too, believes Gary Burrows.
Despite certain difficulties the foreign expert spoke in positive terms about the future of Belarus' real estate market. The country already evokes a strong interest of retailers, developers, and other investors. In particular, Dana Holdings pursues many lines of business in Belarus and they are not limited to retail, development, and residential construction.
“The situation in the sphere of real estate in many Eastern Europe countries 10-12 years ago was roughly the way it is in Belarus at present. Now those countries are strong and structured markets,” noted Gary Burrows. “In Belarus there are many development opportunities for foreign capital. It is important to use them skillfully.”
Source: BelTA