Property Investment slows in Central and Eastern Europe

April 28, 2009 - PRLog -- Since the first quarter of this year,  experts have seen  a drop in property investment levels in Central and Eastern Europe (CEE)- they are at €220 million which is a third of the volume of the last quarter of 2008.

This news seems gloomy, but actually the situation is not as terrible as it appears.

The main factor in the investment slowdown is a lack of liquidity which is impacting on every property investment market in CEE, and therefore is having a negative effect on investor decisions.

In the CEE a high proportion of  property investment activity is in Russia- led by several business related transactions- and in the Czech Republic- driven largely by Deka’s investment.

In the last few years, the countries that usually had high  property investment volumes, for example Poland and Romania are now witnessing low turnover in comparison to previous years.

There is a ray of hope in this situation-  a considerable pipeline of activity in some of the core markets in CEE. According to Jos Tromp- Chief executive of CEE Research and Consulting- there are some reliable assests which are currently beeing looked into by the institutional investors in Czech Republic and Poland

Meanwhile some foreign  investors are waiting for an improvment of this situation soon.


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