Emerging Europe – at a turning point?

Norway and Sweden continue to ride out the euro-zone crisis relatively well. But the picture in Emerging Europe is less bright. The Czech and Hungarian economies both contracted in Q2, while the pace of growth in Russia eased. Consistent with that, the recent drop in CEE investment activity was sustained. The rise in office and industrial yields in Budapest could be an early sign that Emerging European property markets are at a turning point.