Investments in real estate: Warsaw No. 1 in Central and Eastern Europe
Capital of Poland came first in Central and Eastern Europe in terms of total investment volume in commercial real estate - according to the report "Winning in Growth Cities" Cushman & Wakefield.
Warsaw on 49th place in the world
Low interest rates and the continuing risks induce investors to invest in commercial real estate in major cities around the world - according to a report by Cushman & Wakefield presented at the investment fair EXPO REAL in Munich "Winning in Growth Cities".
In the global ranking of the world's largest investment markets, Warsaw was ranked the 49th position between the German Stuttgart and American Orlando. In the 12 months until the second quarter of 2012,
the volume of investments in commercial real estate in the Polish capital increased by 3.4 percent. to
1.96 billion dollars.
The winner of the listings for the second time in a row, turned out to be the New York City - investments increased to 17.5 percent to 34.7 billion dollars, London was just behind (an increase of 2.4 percent to 29.3 billion dollars) and third place has been given to Tokyo (23.9 billion dollars, a decrease of 7.6%). The first six close Paris, Los Angeles and Hong Kong.
The Polish capital was also on a high 12th position in the category of cross-border investments. The value of these investments in Warsaw in the second quarter of 2012 increased within 12 months by 6.9 percent. to 1.93 billion dollars. Most of the foreign capital invested for the second year in a row in London (19.6 billion dollars., an increase of 7.4 percent.), and the second`d and third place respectively occupied Paris (10.2 billion dollars., an increase of 47.5 percent. ) and New York (7.4 billion dollars., an increase of 29.3 percent). In the 12 months to the end of the second quarter of 2012, global capital flows amounted to 150 billion USD, an increase of 4.3% compared to the same period last year.
"Warsaw still has large growth potential as a key regional centre of business. Thanks to the relative resistance to the effects of the financial crisis is seen as a market with low risk", said David Hutchings, Director of European Studies Department of Cushman & Wakefield.
Emerging markets will take over the baton
Last year, 25 cities in the top positions in the global ranking of investment have increased its market share to 46 percent. in 2009 to 56 percent. These locations will continue to be preferred by investors due to the security of investment, but in the future must deal with a significant increase in competition from other cities - the report says.
"The order of the cities in the top positions of the statement indicates that the most important thing for investors is the investment security. With the advent of the economic recovery, it may change. In our opinion, the order of the ranking will change as cities mature, the construction of higher-quality real estate in emerging locations, and expansion of tenants into new markets"- says Glenn Rufrano, President and Chief Executive Officer of Cushman & Wakefield.
In terms of investment trends over the past 12 months in the individual market sectors most of the capital was invested in offices (43%), and retail afterwards(20.8%), residential (18,1%), warehouse (10.3 per cent) and hotel (7.2%).
5:09 2012-10-10 Last updated: 2012-10-10 9:19
