The current financial upheaval had a strong impact on the European real estate market: in the last quarter of 2007, real estate investments fell back by 30%, the UK sustaining the biggest hit, stated property consultancy CBRE in its latest research.
The overall tendency remained stable in real estate investment, and there was even a slight growth if the whole year is considered, from €230 million ($339.4 million) in 2006 to €236 million ($348.3 million) in 2007. The restrictions in the monetary sector will influence the H1 of 2008, but well-capitalized investors like German and some sovereign open-end funds will strengthen their European activity. In the CEE region, the total volume of real estate investments of €12.5 billion ($18.4 billion) has not changed, but while Russia and Poland has fallen back, the Czech Republic (with a 70% growth to €2.8 billion) and Hungary (with a 150% growth to €1.9 billion) racketed. In case of stock investment value between 2000 and 2007, Poland leads the list with €12.3 billion ($18.15 billion), followed by the Czechs (€7.9 billion) and Hungary (€5.5 billion), while Russia is only the fourth with €4.5 billion. (Napi Gazdaság)