Investment down in Central Europe
Real estate investment in core central European markets plummeted 41% in the first nine months of this year, according to Cushman & Wakefield.
The realtor has projected a drop to around ?3.5 billion in 2012, a sharp decrease from last year’s record of ?6.1 billion – but has forecasted renewed demand in 2013.
The drop in investment in Poland, the Czech Republic, Slovakia, Hungary and Romania has come from reduced numbers of transactions and longer times in closing deals.
Nevertheless, C&W partner Charles Taylor said that the underlying trend remains positive for Poland and the Czech republic, where demand remains healthy. Significant deals in the pipeline suggest a strong Q4 this year, Taylor predicts.
Central European markets are settling after the upheavals in the Eurozone and investors are strategising to move forward, he said.
Smaller markets such as Romania and Bulgaria have started to attract interest, and C&W predict an uptick in investment in 2013, though mainly for new high-end properties.
For the first nine months of the year, Poland saw ?1.15 billion in investments, way outstripping the Czech Republic, who accounted for ?452 million.