CEE property investment volumes set for record year
17.05.12
Patrick O’Gorman, Director of CEE Capital Markets, CBRE, added: “A new wave of uncertainty has started to significantly impact the availability of financing. Since CEE is still strongly dependent on Western European banks, this is likely to restrict deal flow into 2012. The direct impact is that transactions take longer to complete or collapse. Larger scale transactions are particularly feeling the impact, with some postponed to 2012 depending on bank finance. With all of this uncertainty in the market, it is unlikely that investment volumes will increase further during the first quarter of 2012. Recent strong increases in investment volumes in CEE were dependent on some large transactions taking place, a factor less likely to remain a driver in the short to medium term future. With many investors struggling to negotiate bank finance, equity investors are now seeing less competition for conservative prime investments in most markets. Based on their risk/return-profiles it is likely
Source: Property Magazine International