Quarterly study of the CEE by JLL
4 August 2011
Jones Lang LaSalle published its second quarter market study of the Central-Eastern and the South-Eastern European region in which already seven countries are represented for the assessment of the real estate market trends.
"Now, time becomes the key factor for market players. Soon the tenants will feel that the before positive market conditions come to an end. In the next two to three quarters owners, investors and developers will take into account first what will be the time for key developments and investments. But all of this should be done in an uncertain economical and financial situation. "- Said John Duckworth managing director in CEE and SEE of Jones Lang LaSalle.
Kevin Turpin, CEE and SEE market research manager pointed out: "The development volume of the regions remains relatively stable over the next 2-3 years, developers and owners will continue to focus on letting their vacant spaces. Most of the developments in the office, industrial and retail sector are based on significant pre-lease contracts and built-to-suit needs. At the same time speculative building slowly restart in cities with low vacancy rate like Warsaw or in those market segments where there are only few office space of good quality."
"The Hungarian property market’s upswing is not yet so dynamic than in Poland or the Czech Republic. The slow decline of the high office market vacancy rate is mainly due to that only few new projects are transferred - in most cases with pre-lease contract, however the increase of demand is less buoyant. In the office and industrial real estate markets the same demand can be expected in 2011 as in 2010, but good news is that the investment market has now surpassed last year's performance. Although there are few properties for sale that meet the needs of institutional investors, but our expectations have increased: the annual investment volume may reach 550-600 million euros in 2011." added Ferenc Furulyás, managing director of Jones Lang LaSalle Hungary.
Source: iroda.hu
