The real estate market is contrary to the crisis! - News about real estate, Kiev, Kyiv region. Real Estate In Ukraine
The decline is primarily due to the lack...The real estate market in Central and Eastern Europe oppose global crisisAccording to a forthcoming report from CB Richard Ellis Group, Inc. for the "market of real estate investments in Central and Eastern Europe" in the first half of 2008, the total investment turnover in commercial real estate in this region in the first half of 2008 amounted to EUR 5.9 billion. Despite a reduction of 14% compared with the first half of 2007, the level of operations in Central and Eastern Europe (CEE) remains at 22% higher than in the first half of 2006. The overall level of investment activity remains quite high compared with other European markets, where the volume of transactions is under stronger influence of the financial market. To date, the investment volume in CEE property is 9.3% of European investment. This is higher than in 2007, when he was just 6%.The decline is primarily due to lack of available funding, the General deterioration of the global economic Outlook and the uncertainty of the market. Among buyers there are different expectations from the prices, and the current owners are not eager to immediately dispose of the estate, since the density of use of the property ensures constant growth of income. This impasse was a number of CEE countries, while in Eastern and South-Eastern Europe, the requirements of investors, perhaps even stronger. For example, in Russia and Bulgaria turnover of the invested capital with the first half of 2007 to the first half of 2008 increased by 79% and 29% respectively.As in other parts of Europe, the profile of the investment market in CEE is rapidly changing, going back to traditional basics. Instead of buyers with a high proportion of borrowed capital, which dominated the market in previous years, the buyer comes with its own capital, which is above all interested in the quality and location of the property. In particular, in the first half of the year in CEE it is noted that the German capital: EUR 1.6 billion of direct real estate purchases in the first half of 2008 compared with 1 billion euros in the first half of 2007. On the contrary, Austrian and American investors in the first half of 2008 have invested significantly less than in the first half of 2007.The dominance of Central Europe at the traditional market in the region continues to weaken. Investors tolerate more attention to South-Eastern and Eastern Europe in search of opportunities for new investment. In the first half of 2008 the volume of investments in CEE almost equally divided between Central Europe (31%), South-Eastern Europe (34%) and Eastern Europe (35%).The bulk of investments (74%) of the capital of the CEE countries. From the total most of the investment goes into the office (34%) and retail (32%). Market investment in facilities mixed use also remains high after a significant growth in 2007 on the Contrary, the market of investment in transport facilities in the first half of 2008, almost froze, because the decline in production and lower rents in some parts of the region began to exert strong pressure on the principal logistics.Another trend that became noticeable in the first half, the increase in the volume of residential properties in CEE sold to investors. Almost 5% (291 million euros) from total operations consists of the sale and leaseback, for comparison, in 2007 this amount for the entire year amounted to 178 million euros.Jos Tromp (Jos Tromp), regional Manager at research in CEE CB Richard Ellis, makes the following conclusions: "Investors whose capital depends on the market long-term capital inevitably reduced this year activity in CEE, which affected the overall volume of investment operations. However, there are many investors with their own capital, for example, German Open Ended Funds. They carefully observe price changes and plan to remain actively involved in the investment.