2010 – Early but sporadic signs of recovery

Jones Lang LaSalle presents its latest edition of quarterly market reports - CEE City Reports Q4 2009. The CEE City Reports cover the main trends in the economy and demand and supply in the investment, office, retail, industrial, hotels and residential markets. We are also pleased to present the first edition of the Zagreb City Report, in cooperation with its alliance partner Viridis Edificium, in Croatia.

John Duckworth, Managing Director of Jones Lang LaSalle in CEE comments: “2010 has finally come around and in most part, we can happily say goodbye to a rather difficult and challenging 2009. We do expect 2010 market conditions to improve across the CEE region for all sectors, although this will happen slowly throughout the course of the year and continue into 2011. Markets in the CEE region have each been affected in different ways and at different levels of severity. Some markets were hit hard during their emerging stages whilst others were affected during their maturing phases. Either way, Jones Lang LaSalle has continued to find new ways to help their clients and partners to achieve their goals”.

Mr Duckworth also added: “Across Europe, investor and occupier sentiment continues to improve and is driving activity for a specific band of prime real estate. Development pipelines continue to be limited as financing remains difficult to obtain and developers are required to secure significant pre-lease levels for all asset classes before financing and construction is granted. Occupier activity across all sectors has slowed in 2009 compared to previous years as similar financing issues prevent or delay relocation and expansion plans. Partially as a result of this, we have recorded an increased level of renewals or renegotiation activity, particularly in the office markets. Falling rental levels are beginning to bottom out in most of the core CEE markets and we expect stability to fully return throughout 2010”.