A massive 180 per cent year-on-year increase in real estate investment turnover was recorded in Central and Eastern Europe (CEE) over the first five months of 2011. Research by CB Richard Ellis (CBRE) found that some EUR 4.4 billion was transacted over the period.
The firm explained that liquidity in a growing number of markets has led to an increase in the level of the transactions.
Despite investment activity spreading into a wider range of CEE property markets, investor focus has remained on Poland, Czech Republic and Russia. The Czech Republic saw the most significant increase in investment on the back of some large portfolio transactions closing.
Consequently, an increase in liquidity in the secondary segment has not become visible thus far.
"Volume was driven by activity in the core markets. Specific retail assets and city centre offices have seen the most demand from investors in Poland and Czech Republic, mainly due to the high rental growth prospects," Patrick O'Gorman, director at CEE Capital Markets at CBRE, said.