17:07 2011 is 3rd most active year for property investment in CEE history | |
| Commercial property investment volumes in Central and Eastern Europe
(CEE) reached more than €11.2 billion by the end of December 2011 -
twice the volume when compared to 2010, according to the latest data
from CBRE. Significant deal flow in Russia during December 2011 pushed CEE property investment volumes over the €10 billion mark, which resulted in the third strongest year in CEE history. The strong finish in the final quarter of 2011 (Q4 2011) confirms the expectations CBRE had at the start of December that several pending transactions would close by the year-end. Of particular note was the closing of the Galeria centre, a large mall in St. Petersburg, for over €800 million. Low levels of property investment activity were recorded in South Eastern Europe (SEE), with Serbia and Ukraine not seeing a single institutional transaction during 2011. However, increased investment activity has been visible in the Hungarian and Slovak commercial real estate investment markets in recent months. This trend is likely to continue, especially in Budapest, since the core segment of the market has remained mostly illiquid thus far and occupier market fundamentals have remained occupier friendly. In total, investment volumes in Hungary increased from around €180 million in 2010 to over €600 million in 2011. Despite the fact that in some Western European markets yields have turned the corner, prime yields are expected to remain solid in markets such as Poland and the Czech Republic based on strong demand and income growth, while increasing bond yields and the poor performance of the Forint are weakening fundamentals in Hungary. Source: europaproperty.com | |
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