IPD: Commercial property returns slow in CEE region

IPD, the world-leader in commercial real estate performance analysis services, today announced that the All Property total return in its consultative CEE Index, comprising properties in Hungary, Poland, the Czech Republic, Bulgaria, Romania and Slovakia, slowed to 13.6% in 2007, a considerable drop from the 18% total return in 2006.

The CEE All Property total return in 2007 was the weakest since IPD began calculating the index in 2005. Still, with annualised growth of 15.3% over a three year period, the region has produced some of Europe's most robust growth.

Capital values rose by 6.4%, less than in 2006 when All Property capital values surged 9.8%. Income growth in 2007 also slowed to 6.8%, compared with 7.5% the previous year. Retail was the best-performing sector, returning 18.0%, followed by offices at 12.2% and industrials in third place at 10.9%.

Property professionals are encouraged to contact IPD with any feedback, comments or questions regarding this consultative Index. Subject to feedback, IPD intends to produce 2008 figures for the Index early in the second quarter of 2008. Additionally, IPD will work towards incorporating other CEE emerging markets when possible.

IPD Associate Director Dr. Nassos Manginas is pleased that IPD has produced the second total return index for the CEE region: "We are working steadily towards increasing both the sample size and geographies covered in this index. The continuing investor interest in this region and the increasing importance of transparency should enable us to build this index at an accelerating pace."

Source: IPD

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