Property Wire reports that real estate investment turnover in Central and Eastern Europe reached €4.4 billion in the first five months of 2011, an increase of 180%, according to new research by CB Richard Ellis (CBRE).
They say "In a growing number of CEE markets liquidity has started to increase supported by growth in both the number as well as the size of the transactions."
Despite investment activity spreading into a wider range of CEE markets, investor focus has remained on Poland, the Czech Republic and Russia. The Czech Republic saw the most significant increase in investment as a result of the closing of some large portfolio transactions, with a continued focus on income security and prime properties. Consequently, an increase in liquidity in the secondary segment has not become visible thus far.
Meanwhile Sofia Echo report that Bulgaria's new housing construction rose by 13 per cent on the year to 742 buildings in the second quarter of 2011, preliminary data by the National Statistics Institute (NSI) showed.
Newly-built housing, however, dropped by 26 per cent in annual terms to 3500 homes in the quarter.
In Poland - The News.PL reports that the majority of currency exchanges in Poland are running out of Swiss francs as a result of a new law which allows mortgage holders to make outstanding payments in the currency the loan was taken out in.
The anti-spread bill, which was passed at the beginning of August, comes as some relief for Poland's 700,000 borrowers who took out mortgages in Swiss francs.
The Swiss franc was a popular currency for mortgage loans before the financial crisis, when an additionally strong zloty made for a conversion rate of around 2 zloty to one franc near the end of 2008.
According to the free Metro daily, the lack of francs in Polish bureaux de change is a rumour that the Swiss central bank is to raise interest rates, which has caused the currency to slump, landing in at 3.5 zloty to the franc at its worst last week.
Daniel Peaccok (CEE Investments Manager).
For property advice in CEE you can contact investments@propertysecrets.net
