
According to the new report of the International consultants in the field of the property of the company Cushman and Wakefield, "in Europe in the third quarter of 2007 on the commercial property market the quantity of the bargains was about 62.8 mlrd Euro, that is in 23% more comparing to the same period of 2006".
Nevertheless, the report includes the warning that in spite of the growing activity and demand from the side of renters, for the first time from the start of 2003 is seen the growth of capitalization. In 2008 the decrease of investment activity is forecasted.
As a result of the high indexes of the investment activity to current moment, Cushman and Wakefield wait that 2007 will be the next record year and prognoses that the volume of investments will include 235-240 mlrd Euro.
David Hatchings, the leader of the department of the research in Europe, Cushman and Wakefield has commented: "The major part of this sum was invested in the first seven months of this year. Hence in the third quarter the specific activity was seen, conduction of the new bargains was nil till the end of August-beginning of September".
Cushman and Wakefield predict, that the indexes of the 4-th quarter of 2007 will be significantly lower, forecasted general volume of bargains will include 54-58 mln of Euro, that is in 8-10% lower of the average indexes for the previous three quarters of the year and in 30-35% lower of the record indexes of the 4-th quarter of 2006.
"Crisis of liquidity significantly influences the volumes and sums of the bargains", reported Mikhail Raddok, leader of the department of international capital, Cushman and Wakefield. Some of the fields of the capital market became unavailable for business and in the conditions of prices indetermination, activity in the bargains stopped in August, some of the bargains were overlooked, and more huge bargains were delayed. In spite of this, it is necessary to admit, that crisis influences the whole market in the equal level. Out of the borders of Great Britain many countries of Europe continue to show the healthy features of development. Here investors are still active and have the large choice of the property that earlier. Hence, it is out of doubt that the buyers look at the sizes of bargains and the quality in other way. The demand of investors grew and only the best property objects can be realized on the same price level that were normal this year yet"
In the beginning of 2008 condition stay more favorable for the buyers, than for sellers. Hence there is no lack in the buyers' number. As many of the investors understand currently existing real estate for sale market conditions give the possibility to carry out beneficial bargain. |