Fresh optimism drives Eastern European property growth | 15 July 2014
The improved economic outlook in Central & Eastern Europe (CEE) has provided a major boost to the region’s commercial property market, one expert has claimed.
Jos Tromp, CBRE’s head of research for the CEE area, believes that low interest rates have also contributed to a positive shift in the region, with investment volumes reaching €2.5 billion for the first six months of 2014. This marks a 15 per cent increase from the same period the previous year.
The new figures from CBRE show that Romania outperformed all of its neighbouring countries by recording a year-on-year increase in investment of 300 per cent. This comes on the back of a particularly poor showing in 2013, however.
Investment volumes rose by 36 per cent in the Czech Republic, while Hungary experienced growth of 35 per cent. CBRE’s report suggests that both countries have benefited from a lack of supply in nearby Poland, with many investors struggling to find suitable opportunities.
According to Mr Tromp, the ongoing unrest in Ukraine has had an effect on other areas in Europe. He was quoted by worldpropertychannel.com as saying: “Almost all markets have shown increasing liquidity levels, with the exception of Russia, which was clearly adversely affected by the Ukraine crisis.
“It is also important to remember that Russian deal flow was abnormally high for the same period in 2013. However, until the situation in the Ukraine settles down we expect cross-border investment into Russia to remain relatively slow.”
Investment volumes in Russia dropped by 60 per cent as a result of the Ukraine crisis, propertyeu.info reports.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
We are proud to announce that a number of our customers have been shortlisted at the prestigious ARMA ACE Awards.
Research by Qube Global Software reveals that only a tiny proportion of the UK’s leading property and facilities management companies believe they are harnessing technology successfully.
Qube Global Software and Engage enter joint venture in boost to Build to Rent Sector.