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Property investment in Central and Eastern Europe (CEE) totalled EUR 458 mln in the July-August period following the close of 17 transactions, according to the September edition of CB Richard Ellis' CEE Property Investment MarketView. Most of the sales closed in the summer months were done off market.

This brings the year-to-date investment turnover for the CEE region to EUR 936 mln. The turnover recorded in July/August alone was 96% of total H1 2009 turnover. The increase in activity was primarily due to transactions recorded in Russia (EUR 239 mln in July/August, 52% of CEE total) and the closing of some long-term pending transactions in Central Europe. Almost all Russian turnover in 2009 has been the result of purchases by local investors. Elsewhere in CEE, activity has picked up somewhat, but most markets have remained quiet.

CBRE said that the defining characteristic of the CEE investment market so far in 2009 has been sustained low levels of purchase activity by international investors. Jos Tromp, head of CEE Research & Consulting, explains: 'International investors continued to stay largely on the sidelines over the summer in CEE. They accounted for only 41% of CEE property investment turnover in 2009, compared to more than 80% from 2004-2008. Local investors have filled the void left by international investors in some markets. In Russia, for example, local buyers have accounted for 93% of Russia’s 2009 turnover as they take advantage of significantly lower prices to acquire certain properties. In other markets, private investors have taken advantage of opportunities, mostly in the B-class segment. The question now is whether these local investors will continue to target attractive B-class products if international investment remains slow.'