The Eastern European investment market saw €7.7 bn worth of transactions in 2012, down over 33% on the €12.2 bn a year before, according to Colliers International.
The Eastern European investment market saw €7.7 bn worth of transactions in 2012, down over 33% on the €12.2 bn a year before, according to Colliers International.
'This figure should not be taken at face value as the closing of large deals distort the statistical year-on-year trends,' commented Damian Harrington, regional director of research for Colliers International.
The investment market was driven by some very large deals, including the Europolis Portfolio and the Galeria St Petersburg deal at a total of €2.3 bn or almost 20% of the total transaction volume for the year.
'Whilst the year-on-year statistics depict strong volatility, the clear underlying trend which is visible to us is that the markets which continue to attract real estate capital offer a combination of liquid capital markets, availability of strong, core assets at reasonable pricing levels and positive economic and property market growth fundamentals,' added Harrington.
The markets which benefit most from these conditions are Russia and Poland, which accounted for over 80% of all transactions in 2012. Harrington: 'This trend will continue into 2013.'
