Global Property Consultant Cushman & Wakefield recently revealed that investment increased in the primary property markets of Poland, Czech, Slovakia and Hungary throughout 2011, reaching 6.1 billion euro; more than double the investments made in Central Europe in 2010.
Czech faced the largest increase in transaction volume, but Poland maintained its leading status for investments in the region. Romania, Slovakia and Hungary also experienced a climb in investment volumes. The investment increase was expected, though it was hindered greatly in the fourth quarter amid regional financial woes and investors’ hesitation.
Charles Taylor, Chushman & Wakefield partner, said: “Most CE markets in 2011 experienced a significant increase in activity due to much improved investor appetite and a reasonable supply of quality assets. Moving into 2012, we see increased disparity across the region in terms of property market fundamentals and importantly, a widening gap in investor confidence. Given the more difficult financing environment, we don’t expect 2012 volumes to match the previous years. Our forecast is around 5 billion euro.”
This of course has a domino effect on other financial matters such as the hedge fund industry. According to Clare Dickinson, “a positive outlook for the economy fuels the optimism among Russian hedge fund managers” and most likely the hedge fund strategies they establish as a result.
