Is it Time to Buy Commercial Real Estate? (Video)
Friday, August 13, 2010
Source: CNBC
CNBC reports: The commercial real estate market is recovering from an awful recession, but may not be suited to all types of investors, Richard Yorke from Real Capital Analytics told CNBC on Friday.
RCA's mid-year Global Capital Trends report shows that in the first half of 2010, commercial property transaction volume reached €47.3 billion in EMEA (Europe, the Middle East and Africa), which is a 41 percent increase compared to the same period in 2009.
Low yields in primary markets (London, Berlin, Paris) have prompted frustrated investors to look to secondary cities and emerging markets. Eastern Europe, particularly Poland, saw the greatest surge in transactions over the first half of the year. Western Europe was weighed down by declining transactions and rising cap rates in Spain and Italy.
"Some investors are looking for long-term gains, so we're seeing people like the National Pension Service (NPS) of Korea buying the Sony Center in Berlin for over 500 million Euros at a very skinny yield" says Yorke. "Clearly some investors are more opportunistic, more speculative, and tend to look at second tier locations like Eastern Europe - Hungary and Ukraine are particularly popular at the moment."
View the full article on CNBC: Is it Time to Buy Commercial Real Estate? (Video)
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Posted by: Matthew Stone