Investment in Europe

Viability of the investment in European industrial realty.

According to the results of economic studies published by an authoritative edition Cushman & Wakefield, in the year 2008 the industrial realty of Eastern and Central Europe, and South America has represent itself as the most promising one. In most countries the average growth rates for the lease of industrial real estate market has come down by an average of 3.7% compared to 2007. The markets of Western Europe and North America have suffered first and more than the others. At the same time the markets of Central and Eastern Europe have remained almost the same level as in 2007, because in these countries there are not so many industrial facilities situated. Moreover, in countries such as Ukraine and Poland the lease rates have increased by more than 20%.

The head of the relevant areas of the Cushman & Wakefield Ferdinand Hlobil said that the countries of Central and Eastern Europe have been leaders of the world’s industrial real estate market for a long time - not only by the number of the realty built, but also by the employment of the built premises. This is natural, because in the recent years there has been a shift of production facilities from the western regions to the eastern ones. The trend will go on in the foreseeable future as well as a large part of Europeans live in the Central and Eastern Europe. Also Ferdinand Hlobil noticed that regardless of the global economic crisis the industrial real estate of market these countries will not collapse in the closest 2 years.

Senior Analyst of the Cushman & Wakefield, Barry David responded to the statement of Hlobil that over the year 2008 the growth of the rental rates in Western Europe declined markedly, although industrial real estate here is still the most expensive in the word. In 2008, there has been the growth of the real estate market observed but the demand has slowly but significantly decreased. The forecast of David Barry that in 2009 this trend would be continued has proved itself correctly. But as the situation in the Central and Eastern Europe and South America industrial real estate market is much more stable, analysts have called these regions the most promising ones. As predicted, the situation will not change at least until mid-2010.