CEE retail investment accelerates in H2 2009: CBRE

The retail investment market in Central & Eastern Europe (CEE) picked up significantly in the second half (H2) of 2009 with turnover rising to EUR 650 mln. This brings total retail investment over the full year to EUR 760 mln, according to new research by CB Richard Ellis.

Despite higher levels of activity in H2, full-year turnover finished 77% below 2008's total. However, investor interest in high-quality retail assets across CEE remains solid, CBRE said, pointing to a growing belief that the worst of the economic crisis in CEE occurred in H1 2009. At the same time, lagging economic indicators such as unemployment and consumer confidence will put further pressure on CEE's retail structure in 2010.

CBRE said that while it remained too early to declare that a robust or sustainable economic recovery has taken hold, prospects improved for all CEE economies in H2 2009, with several countries recording positive quarterly growth. Other positive trends included the German economy’s emergence from recession, renewed growth in world trade and improved industrial production results in Europe and the US.

Jos Tromp, head of CEE Research & Consulting, CBRE, commented: 'In the second half of 2009, most CEE countries avoided a repeat of the significant quarter-on-quarter falls to GDP that occurred in the first half. Despite the improved economic signals, retail markets across CEE will continue to be pressured in 2010 by unemployment and consumer confidence, which typically lag economic growth. Retail sales are therefore likely to remain relatively low across CEE in 2010 because consumers will only begin to spend again when they are confident in the security of their jobs and salaries.'