Turnover in CEE reaches EUR 1.2b in first two months

Real estate investment turnover in Central and Eastern Europe (CEE) reached EUR 1.2 bn in the first two months of 2011, according to new research released today by CB Richard Ellis (CBRE).

This figure includes the acquisition of Oesterreichische Volksbanken AG’s Europolis real estate unit by CA Immobilien Anlagen AG, one of the largest property companies in Austria, announced during summer 2010 but officially completed in January 2011.

Transaction activity outside of central Europe has started to re-emerge following improvements in south eastern Europe at the end of last year. Poland also remains a key target market for investors and although a limited number of transactions were closed in the office sector in January and February, activity and interest in the market generally remains high.

Russia’s property investment market slowed down considerably in the first two months of the year, which is typical following the winter break in January.

‘We foresee further increases in property investment volumes in CEE in 2011,’ said Jos Tromp, Head of CEE Research and Consultancy, CBRE. ‘However, the availability of quality product across the region is expected to be a key constraint on activity. In line with CA Immo’s purchase of Europolis, additional corporate acquisitions may push investment volumes up further.’