The smaller activity on the CEE investment market

In the second quarter of the current year, investments in commercial real estate decreased by 60 per cent in relation to the previous quarter.

 

The report prepared by DTZ clearly show that activity on the CEE investment market markedly decreases. In the second quarter of the current year, investments on the commercial real estate market amounted to 327 mln EUR, whereas in the first half of the year 1,2 bn EUR; the result fits below the average of 1,4 bn EUR.

As Magali Marton from DTZ says, after two years of constant growth observed in the years 2010 and 2011, the value of investment in  the Central and Eastern Europe region in the first half of 2012 decreased by 47 per cent. However, certain differences between regions were observed. The Chech Republic, after a rather low result observed in the first quarter at the level of 20 mln EUR, noted a significant increase of the investment value in the second quarter – 159 mln EUR. In comparison, Poland, which has usually been the leader of activity on the market, suffered from a substantial decrease of investment value – from 717 mln EUR in the first quarter to as little as 122 mln EUR in the second quarter of 2012. Both countries account for 90 per cent of market shares in the first half of 2012.

In the CEE region, the office sector remains the most attractive as it accounts for 60 per cent of investment market.  The investment value on this market was 207 mln EUR (which is still a lower result than a quarter average being 389 mln EUR). In comparison, the investment value of trade real estate amounted to 106 mln EUR in this quarter (the quarter average being 471 mln EUR).

Magali Marton claims that in the nearest future we may expect the restriction of investment activity on the investment market. It is related to insecurity on the market connected with i.a. crisis on the treasury bonds market and the influence of new regulations (in particular Basel III), which quicken the withdrawal of financial resources by foreign banks.

The full report is available below.

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