REAL ESTATE MARKET AND SLOWDOWN INTERACTION IN COUNTRIES WITH TRANSITION ECONOMY

Abstract

Euro zone countries with transition economy are more and more exposed to the processes ofeconomic globalization. Their development and growth perspectives are valued in relationship with globalfinancial slowdown aspects as well as in relation to business enterprise’s and household’s economicalexpectations. Rapid growth of international capital markets, investment flows and opportune credit policyamong new open economy countries activated real estate market boom. Economic crises are often related toreal estate market busts. Countries, wishing to reduce recession or prevent financial crisis, have to monitorand supervise the real estate market. Purpose of the article is to investigate the real estate market andslowdown interaction in countries with transition economy. Main conclusion is, that slowdown ofaccumulation in real estate market and slowed down growth in construction sector leads to real estate marketrecession as well as to economic slowdown.