Russia is expected to see positive economic growth in 2010

09.11.09

CB Richard Ellis issued new report "Risk, Return & Reality – CEE Office Property". According to the report, Central European office investments outperform other CEE and several European markets. Core office properties in markets such as Poland and Czech Republic have the potential to offer income generating characteristics at relatively low risk levels, and at prices that are significantly more sustainable than one year ago, thereby presenting interesting opportunities for investors to (re-)enter these CEE property markets. CEE economies are not yet out of the woods, but recent forecasts are more positive for 2010 and 2011. Jos Tromp, Head of CEE Research, explains: "All CEE economies have been affected by the downturn, but the impact has not been uniform. Poland, for example, is still forecast to record positive economic growth in 2009, which would make it one of only a few European countries to do so. Moreover, prospects for recovery in 2010/11 are generally seen as better in CEE than Western Europe. The IMF recently forecast economic growth of 3.7% and 2.2% in Slovakia and Poland respectively in 2010, well above forecast growth of 0.3% in the Eurozone. Even hard-hit economies such as Ukraine and Russia are expected to see positive economic growth in 2010. This would have positive effects on office markets across the region, including easing upward pressure on unemployment and limiting further downward pressure on rents."

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