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2010 RE investment turnover to increase over 50%

Los Angeles-based multinational real-estate corporation CB Richard Ellis (CBRE) expects real-estate investment turnover in Hungary to increase to €400 million in 2010 from €260 million in 2009, CBRE real-estate investment chief in Hungary Tim O'Sullivan announced on Thursday.

O'Sullivan said that the real-estate investment turnover in central and eastern Europe (CEE) was €2.5 billion in 2009, 3.5% of that in the entire continent last year, noting that the four countries of the Visegrád Group - Poland, the Czech Republic, Slovakia and Hungary - generated 55% of the real-estate investment turnover in the CEE region last year, up from 35% in 2008.

O'Sullivan remarked that the expected yield on real-estate investments was 12% in Moscow at the end last year, compared to 9.5% in Bucharest, 8% in Budapest, 7.5% in Bratislava, 7% in Prague and 6.8% in Warsaw. The expected yield within the EU-15 was 6%.

CBRE chief analyst Gábor Borbély said that rental fees had fallen 10% in Budapest, Prague, Bratislava and Bucharest after the onset of the economic crisis, plummeting 35% in Warsaw and 50% in Moscow since then.

Borbély predicted that the vacancy rate for real-estate investments would decline from its current rate of above 20% to 18% by the end of the year, adding that equilibrium between supply and demand would likely emerge in Prague and Warsaw sooner than it would in Budapest. (MTI-ECONEWS)