CBRE upbeat on CEE

Property investment turnover in Central & Eastern Europe (CEE) was about 32% higher than the monthly average for the first quarter of 2009, according to CB Richard Ellis. Overall, however, the market remains slow and is relying on investment by German open-ended funds, according to CBRE's CEE Property Investment MarketView for April 2009.

Activities in April totalled approximately EUR 100 mln on a total of five transactions: three retail, one office and one industrial. The most active investor in CEE so far in 2009 has been DEKA with its acquisitions of Jungmannova Plaza in Prague and Grzybowska Park in Warsaw.

CEE markets have become more attractive to potential investors as yields have moved out across the region in recent quarters, according to CBRE. Yields in certain Western European markets such as London, Paris and Madrid seem to be close to bottoming out, which could herald more stable yields for prime properties in CEE later this year.

Opportunistic buyers continue to express interest in the region, says CBRE, but this is not yet being realised in transaction levels as prices have not moved out to the extent deemed appropriate by investors.