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Record property investment in Central and Eastern Europe

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A rise in property investment in Central and Eastern Europe (CEE) reflects the opportunities the region holds. However, understanding the development feasibility of the region plays a key role in capitalising on these trends. 

Rise in investment in CEE

The third quarter for 2015 has seen record investment levels into CEE, according to global advisory company JLL. The summer months in this region have seen over €2.8 billion capital spent, one of the strongest figures the area has seen.

"With the final quarter of the year often representing one of the busiest periods for our investment teams, and looking at the pipeline of deals that are in advanced stages, we predict that the CEE regional volume could reach the €8 billion mark by the year end," claims JLL Head of Research CEE Kevin Turpin.

"Should the latter happen, it would put 2015 at the highest level since the economic downturn and third highest in the past 12 years."

This quarterly figure brings the total property investment levels for this year to more than €5.5 billion and represents a 22 per cent growth year-on-year. If investment continues at a steady rate for the rest of the year, JLL expects 2015 to hold record highs for the region.

Global firm links CEE to high profits

Alongside this, Knight Frank reported a record profit for 2015. The recently released financial results for the year ending March 31 reveal a record £162 million profit as well as a £443 million turnover.

Alistair Elliott, Knight Frank group chairman and senior partner, notes the significance of cross-border investment and the growing interdependence of markets. Nevertheless, he warns that property feasibility varies across Europe. 

"In Europe, fortunes are varied. This reflects the reality of the multi-speed markets across the Eurozone. Dublin and Madrid have outperformed while the French and German markets remain mixed. With the exception of Russia, the real estate markets in CEE remain strong," says Mr Elliot.

Knight Frank's profit levels reflect the importance of looking at all options, particularly emerging property markets. However, when doing so, it is imperative that the development feasibility across regions has been accurately valued. 

In order to efficiently estimate this, a property development plan should be an essential component of any investment consideration. 

Date Published: 14 Oct 2015
Category: General News

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