If we compare the commercial real estate market in Europe in the last three months of 2008 with the first three months of 2009, we can see that the trade value dropped from 22,6 billion € to only 11,5 billion, which is a drop of almost 9 billion, or 44%. Leading analysts believe this is a result of the Lehman Brothers bank collapse that happened 6 months ago and caused several German real estate funds to close, whic in the end led to the entire European market collapsing.
Still, not everything is so gray. The month of March brought us first positive news in some markets in Europe, which even showed rising activity and first signs of recovery. United Kingdom, for example, showed a fall of 22%, half the percentage of Europe total 44%, and it could be a good sign if you take into account that UK was the first European country hit by the crisis, so it could also be the firs to recover completely. Biggest drops in other European countries were the huge 72% in France and 56% in Germany.
Central and eastern Europe, including the real estate market in Croatia, showed a drop of 57%, from 616 million € to 268 million €.
This information may be tricky, but it could be an indication that the market has finally begun to recover. This also means that there will probably not be any more large price drops.