Spectator on facebook

Spectator on facebook

BUSINESS IN SHORT

Big drop in real estate investment

INVESTMENT in real estate dropped by about 60 percent year-on-year in 2008. The overall volume of investment in three main sectors - office space, retail and industry-logistics - reached roughly €119 million last year, according to data from Cushman & Wakefield, a service provider in commercial real estate.

INVESTMENT in real estate dropped by about 60 percent year-on-year in 2008. The overall volume of investment in three main sectors - office space, retail and industry-logistics - reached roughly €119 million last year, according to data from Cushman & Wakefield, a service provider in commercial real estate.

The 60-percent drop in investment was the biggest among the countries of central Europe, according to the head of Cushman & Wakefield’s investment department in the Czech Republic and Slovakia, James Chapman, as quoted by the SITA newswire.

Real-estate investments worldwide fell by 59 percent last year to 435 billion US dollars, the lowest volume of investment since 2004.

A further fall in real-estate investment is expected in 2009, but on a much smaller scale. Overall world investment in commercial real estate should be around 412 billion US dollars, SITA reported.

“In central Europe we expect another drop in prices this year,” Chapman said. “Investors want secure income from their investments. Unlike in western Europe, in central Europe one can find only a few examples of transactions that offer guaranteed income thanks to long-term rental of real estate.”

Estimates of a revival in prices in 2009 are generally optimistic, but an increase in investment activities is only expected in the last quarter of the year, SITA quoted Chapman as saying.

In the world ranking of countries with the biggest share of investments Slovakia ranked 41st last year; the Czech Republic ended up 30th. The highest share of investment, 25 percent, was located in the US, SITA reported.

Top stories

PM Fico wants Education Minister’s resignation

Education Minister Peter Plavčan has refused to leave, the Prime Minister demanding his resignation.

Education Minister Peter Plavčan

Have you ever climbed a via ferrata? Photo

In central Slovakia, there is one also suitable for beginners. Here are some of the views it offers.

Things that make us different also make us stronger

On August 19, a rainbow flag will fly over the US Embassy in Bratislava to represent the firm commitment of the United States to defending the human rights of LGBTI people, writes Ambassador Sterling.

The rainbow flag flew over the US Embassy in Bratislava in 2016.

Southern Slovakia will face heat again

The first-level warning is issued for the 16th and 17th.