Cyclical goods

The last crisis took place in 2001, so the next stage of the cycle was due, claims a             
      projects, while others decided that slowing down their projects would be all that was needed.                  order for this tohappen, there would need tobe adrastic reduction in supply and banks would have tomake credit much more available. Ithink that 2010 will see thecredit taps turned back on. In Warsaw 22,000 new apartments were finished in   10,000 in 2011 –and weexpect thenumber tobe much lower in 2012.             The Czech market has also suffered. In Prague construction costs have fallen by20pct, so developers were able toreduce sales prices byas much as even 10-15pct. In spite of this, they cannot sell projects which would have been snapped up only 2years ago. There is also anevident trend towards re-designing buildings so that they contain as many small apartments as possible. Many projects have been put on hold and developers are waiting for better times before resuming work.