Lack of 'Saft Havens' Leads Investors to Prime Real Estate in CE Europe - Report

November 11th, 2011 Overall property investment volumes in Central and Eastern Europe (CEE) amounted to 8.0 billion euros by the end of September 2011, the best month so far this year, and twice as high as last year. This according to a new report by global real estate firm CB Richard Ellis.

The report says "The risk of inflation and limited alternative investment opportunities have increased the available money for investment into real estate. Within the CEE, prime real Central European real estate is particularly sought after. Asset classes high on investors' wish lists include prime office products......together with prime retail being mainly large shopping centres, with stabalised income streams located in capital or regional cities with a minimum population size of 250,000."

For our part in Tower we have seen a marked increase in interest in prime residential property, centrally located and of good quality. This can be seen in a level of demand for classical properties in Districts V and VI situated within well maintained buildings or in new development properties which are either centrally located or within easy reach of the centre. However the interest is not reflected in price increases to owners of these properties. Investors still seek bargains, so prices are still down on average 12-15% from peak in our estimation.

According to the report from CBRE investors from the UK and US are showing increasing interest.

Sources: www.cbre.com, and Tower Property Group