The total return for Central and Eastern European real estate in 2007 was the weakest result since the IPD began calculating its CEE index in 2005. The index recorded a total return of 13.6% in 2007, down from the 18% total return in 2006.
The total return for Central and Eastern European real estate in 2007 was the weakest result since the IPD began calculating its CEE index in 2005. The index recorded a total return of 13.6% in 2007, down from the 18% total return in 2006.
The index comprises data on properties in Hungary, Poland, Czech Republic, Bulgaria, Romania and Slovakia. However, with annualised growth of 15.3% over a three-year period, the region has produced some of Europe's most robust growth, IPD said. Capital values rose by 6.4%, less than in 2006 when capital values surged 9.8%. Income growth in 2007 also slowed to 6.8%, compared with 7.5% the previous year.
Retail was the best-performing sector, returning 18%, followed by offices at 12.2% and industrial property in third place at 10.9%. IPD associate director Nassos Manginas said: 'We are working steadily towards increasing both the sample size and geographies covered in this index. The continuing investor interest in this region and the increasing importance of transparency should enable us to build this index at an accelerating pace.'
The IPD CEE All Property Index is based on a sample of 242 properties from 22 portfolios covering EUR 7.09bn at the end of December 2007.
