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News Release

Bucharest, Budapest, Prague, Warsaw

2010 – Further Signs of Recovery

Jones Lang LaSalle issues CEE City Reports for Q1 2010


Bucharest, Budapest, Prague and Warsaw, 13th May 2010 - Jones Lang LaSalle presents its latest edition of quarterly market reports - CEE City Reports Q1 2010. The CEE City Reports cover the main trends in the economy and demand and supply in the investment, office, retail, industrial and residential markets. The new edition highlights the continued stabilization and recovery of both the occupier and investment markets.

John Duckworth, Managing Director of Jones Lang LaSalle in CEE comments: “There are signs of a sustained recovery in the global economy with increasing evidence that the recovery in the business environment is filtering through to the real estate sector in CEE. Occupier demand appears to be either stabilising or is recovering in a number of markets, as the effects of the crisis start to slowly dissipate. Take-up in some key markets have been impressive with all 4 capital cities registering an increase in gross take-up in Q1 2010 compared to the same period in 2009. Warsaw registered over 125,000 sq m of gross take-up in Q1 2010, representing an increase of 175% and Bucharest recording 71,230 sq m of take-up, representing an increase of 159%. The CEE investment market (Czech Republic, Poland, Hungary, Romania and Slovakia) has recorded approximately €700 million of transactions to date, which represents an increase of ca. 169% year-on-year. We expect the remainder of 2010 to continue gradually improving across the CEE region.” 
Mr Duckworth also added: “There are still concerns though that the recovery could be knocked off balance by further economic challenges, growing concerns about inflationary pressures especially in the fast moving markets of Asia Pacific, the possibilities of sovereign debt default in Greece and other countries, and the consequences of inevitable tightening of monetary policy. Despite these worries the real estate sector has regained its serious appeal to a wide range of investors and as economies continue to recover the volumes of capital targeting property are increasing. The corporate world, still with an eye on cost management and value creation are themselves finding innovative solutions to finance space and to mitigate lease liabilities. While the pace varies, the global property markets seem to be getting back on track.”