About EUR 220 mln worth of real estate deals were recorded in Central and Eastern Europe (CEE) in the first three months of 2009 as investment slowed further, according to CB Richard Ellis. This volume represents approximately one-third of the volume transacted in Q4 2008, a slightly stronger slowdown than that experienced in the overall European investment market over the same period.
About EUR 220 mln worth of real estate deals were recorded in Central and Eastern Europe (CEE) in the first three months of 2009 as investment slowed further, according to CB Richard Ellis. This volume represents approximately one-third of the volume transacted in Q4 2008, a slightly stronger slowdown than that experienced in the overall European investment market over the same period.
CBRE said investment volumes for Q1 2009 have seen the CEE market move back to levels seen earlier in the decade, before the region experienced significant growth in property investment turnover during 2005-2007. The lack of liquidity, CBRE said, is having an impact on every property investment market in CEE and is therefore profoundly affecting transaction numbers. The majority of all Q1 2009 CEE investment activity occurred in Russia and the Czech Republic. Russia's volume was driven by several office transactions and one hotel transaction.
Meanwhile, countries that have been drivers of CEE investment volume in recent years such as Poland and Romania recorded very low property investment volume in Q1 2009. Jos Tromp, Head of CEE Research & Consulting, comments: 'What some of the low CEE investment volumes do not show is the considerable pipeline activity in some of the core markets in Central Europe. Several high-quality assets are currently on the radar of institutional investors in the region, especially in the Czech Republic and Poland.'
