Russia experienced a sharp decline in both occupier and investment markets in the first quarter of 2014, according to the latest RICS Monitor.
Russia experienced a sharp decline in both occupier and investment markets in the first quarter of 2014, according to the latest RICS Monitor.
While most of Europe's crisis-hit countries have shown a pick-up in commercial real estate sentiment in Q1, the slowdown in Russia suggests that confidence has been undermined by geopolitical tensions and the ongoing slowdown in economic activity, with the risk of recession now looming.
Across the Eurozone, recovery is gaining traction in some member states, while progress in others is stalling. Sentiment remains particularly downbeat throughout France and the Netherlands, despite both of these countries formerly exiting recession during the latter part of 2013.
By way of contrast, a significant improvement is now visible in Ireland, Spain and Portugal. In fact, investment transaction expectations are now higher in these three markets than in any other countries in the RICS survey.
The brighter outlook is not simply limited to the investment side. Occupier demand is rising and rents are expected to rise as the year progresses. Significantly, in Ireland both the three and 12-month rental expectation indicators are firmly in positive territory.
Want to hear from experts about the latest developments and opportunities in CEE? PropertyEU is holding a CEE Investment Briefing in London on 8 May, and a at ReDI - the CEE Trade Fair for Retail Investment - on 28 May.