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News Release

Belgrade, Bratislava, Bucharest, Budapest, Prague, Warsaw and Zagreb

CEE & SEE – Multi-Speed Market Recovery

Jones Lang LaSalle issues CEE & SEE City Reports for Q2 2011

Belgrade, Bratislava, Bucharest, Budapest, Prague, Warsaw and Zagreb, 2nd August 2011 - Jones Lang LaSalle presents the latest edition of its quarterly market reports – the CEE & SEE City Reports Q2 2011. In this edition, Jones Lang LaSalle brings you it’s quarterly updates on 7 real estate markets including; Belgrade, Bratislava and Zagreb, as part of their new & extended geographical coverage across the region.
John Duckworth, Managing Director of Jones Lang LaSalle in CEE & SEE comments: “The CEE & SEE markets are fragmented and operate at different speeds. The more mature markets of Warsaw and Prague are experiencing a relatively broad based real estate market recovery, whilst Belgrade and Zagreb are in much different stages of their development. Budapest, Bucharest and Bratislava are all different again, but here we also see tentative signs of recovery across investors, developers and occupiers. The big question for all stakeholders is one of timing. Corporate occupiers will start to feel the advantages of tenant markets erode, whilst landlords, investors and developers are processing a myriad of considerations on the optimal timing for key investment and development decisions that need to be taken over the next 2-3 quarters. All of this needs to be placed in the context of an uncertain economic and financial recovery.”
Kevin Turpin, Head of Research for CEE & SEE highlights: “Development volumes in the region are expected to remain relatively stable over the next 2 to 3 years as landlords focus on filling vacant space in existing buildings. The majority of development, across all sectors, are proceeding on the basis of build-to-suit or a significant pre-lease. Speculative development is however slowly beginning to commence in markets with lower vacancy rates, such as Warsaw, and in specific city submarkets where good quality space is scarce, particularly for larger requirements. Due to supply constraints rental levels across the most of the region have stabilised and are even showing signs of growth in certain markets. However, prime rents in the region remain a fraction of those in Western Europe.”.

Notes to editors:
In this edition of our CEE & SEE City Reports we cover key trends in the economy and recent and future trends in the investment, office, retail and industrial markets. In selected markets, we also provide an overview of activity on the hotel markets contributed by Jones Lang LaSalle Hotels and on the residential markets, contributed by REAS. Finally, given the recent volatility in real estate markets, our reports for Belgrade, Bratislava, Bucharest, Budapest, Prague, Warsaw and Zagreb are updated on a quarterly basis. This means the next report will be due in October when we expect there to be further clarity around the effects of domestic and foreign economic pressures on the real estate markets within the region.